The temporary extension of the child discount, which is part of the COVID relief, will pay out ‘family incentive checks’ to about 35 million households in the second half of this year. Families receive payments totaling $1,800 for each child under the age of 6, and as much as $1,500 for children ages 6 to 17.
But if you have slightly older, college-aged children under your roof, you may also qualify for some government funding – to help you cover household expenses or pay off a debt.
Certain conditions must be met. See if your children qualify for this.
Families of young adults can get hundreds of dollars
The child tax credit — strengthened for 2021 to include a series of cash payments, under the massive pandemic stimulus bill that President Joe Biden signed in March — is usually only available if you have children 17 and under.
But a $500 one-time payment, which can be considered a tax refund when you file your return next spring, is available to families of children ages 18 to 24.
The IRS has established a number of conditions for eligibility:
A child of 18 years old must be dependent.
Children aged 19 to 24 must attend university full-time.
Every child must have a social security number.
The income limits of the extended child benefit also apply to these benefits. The money starts to run down if you earn more than $75,000 as a single tax return or $150,000 if you’re a married couple filing together. For head of household filers, the income threshold is $112,500.
Even if you don’t normally file taxes, you can still apply for the $500 credit using the IRS non-filer child tax credit application tool.
Other ways to increase your budget
If your family doesn’t qualify for the Child Tax Credit or the $500 Special Payment for Young Adult Children, there are other ways you can create a little more financial breathing room.
Transfer your mortgage. If you have a mortgage and haven’t refinanced in the past year, you could be leaving a lot of money on the table. Nearly half of homeowners who have benefited from the pandemic’s historically low mortgage rates are now Save $300 or more per month, according to a recent study by Zillow. Thirty-year mortgage interest is still below 3%, so compare today’s refinancing offers and see how much you can save.
Subtract your debt. Carrying multiple high-interest debt, such as credit card balances, can make it difficult to get ahead financially. It’s a problem you can tackle by folding your balances into a single loan with a lower interest rate to consolidate debt. you will reduce the total cost of your debt – and pay off faster.
Reduce insurance costs. When was the last time you checked to see if you might be paying too much for auto insurance? A little comparative shopping can help you find a much cheaper policy. The same strategy can help you save on homeowners insurance, at.
Put your money in a portfolio. You don’t need a lot of extra money to make extra money in the stock market. A popular app allows you to build a diversified portfolio with little more than “change” from your daily purchases.
This article provides information only and should not be construed as advice. It comes without any kind of warranty.