COVID Resources

Stimulus Payments

Federal Child Tax Credit

(Updated July 2021)

As a part of the Biden Administration’s economic relief legislation, Congress has approved the expanded 2021 child tax credit program which pays eligible families up to $300 per child starting mid-July 2021. The payments are part of next year’s tax credit that families would normally claim when they file 2022 taxes. The payments are being given out as a partial advance in order to help families cope with economic hardships following the pandemic.

Single filers with income under $75,000 can receive the full credit. Joint filers with income under $150,000 can also receive the full credit. “Head of household” filers (mostly unmarried single parents) earning under $112,500 can also receive the full credit. Parents who earn above those thresholds may be eligible for smaller amounts. Use the online “eligibility assistant” tool to check your eligibility.

The amount of the credit will depend on the family’s income, the number of children, and the children’s ages. The maximum credit will be up to $3,600 for each child under age 6 and up to $3000 for each child age 6 to 17. Payments will be made on the 15^th of each month through December.

The vast majority of eligible families will start receiving half of the next year’s credit in automatic monthly payments starting mid-July. The payments will be automatically deposited into recipients’ bank accounts or mailed as checks. The payments will be based on tax returns from 2020 or 2019. If a family did not file taxes, their payment may be based on their registration with the IRS that was required to receive the federal stimulus payments. Low-income families who do not file tax returns need to sign up on a special website to get the payments. Families with $0 in reported income are eligible as well.

The IRS has already notified most eligible families by mail. A second notice with detailed specifics about the families’ total credit and how many monthly payments they will receive will go out in early July.

Families who do not want to get the credit early can disenroll from the advance payments through this website. The IRS has set up another special website called the “child tax credit update portal,” where recipients can disenroll from the advance payments. Some families may want to opt out of getting the child tax credit in advance if they know they will make more than previous years and that they will phase out of the income limits. They may want to disenroll to avoid tax liability.

For more information about the credit, the IRS has compiled a list of frequently asked questions.

State of California Stimulus Payment

Golden State Stimulus II — September 2021

Source: California State Franchise Tax Board

California will provide the Golden State Stimulus II (GSS II) payment to families and individuals who qualify. This payment is different than the Golden State Stimulus I (GSS I). If you qualify, you only need to file a complete 2020 tax return to receive the Golden State Stimulus II payment. To receive your payment, file a complete 2020 tax return by October 15, 2021. Payments will begin in September 2021. Check if you qualify.

Golden State Stimulus I — March 2021

Source: California State Franchise Tax Board

California will provide the Golden Status Stimulus payment to families and people who qualify. This is a one-time $600 or $1,200 payment. You may receive this payment if you receive the California Earned Income Tax Credit (CalEITC) or file with an Individual Taxpayer Identification Number (ITIN).

Check if you qualify for the Golden State Stimulus
To qualify, you must:

• Have filed your 2020 taxes
• Be either:
  • A CalEITC recipient
  • An ITIN filer who made $75,000 or less (total CA AGI)
• Be a California resident on the date payment is issued
• Not be eligible to be claimed as a dependent

Qualify for CalEITC
To qualify for CalEITC, you must:

• Have taxable earned income up to $30,000
• Not use “married/RDP filing separately” if married or RDP
• Live in California for more than half the year
• Meet all other qualifications

Visit CalEITC for more qualifications and other information.

What you’ll receive
If you meet these qualifications, you may receive either:

• A one-time $600 payment
• A one-time $1,200 payment

The payment will be by direct deposit or check in the mail per tax return. See this website to determine the amount of your payment.

Typically, you’ll receive this payment using the refund option you selected on your tax return. If you received an advanced refund through your tax service provider, you’ll receive your payment by check in the mail.

When you’ll receive your payment
The State will issue stimulus payments monthly after eligible 2020 tax returns are processed.

• Direct deposits: Allow up to 45 days
• Paper checks: Allow up to 60 days

Payments are expected to begin in March 2021.

Stimulus payment deadline
The stimulus payment expires on November 15, 2021. To make sure you receive your payment, file your 2020 tax returns by October 15, 2021.

How to get your payment
If you qualify, or think you may qualify, for the Golden State stimulus payment you need to file your 2020 tax returns. If you qualify for CalEITC, make sure you claim it on your return. Use this website as a guide.

Check stimulus payment status
Refer to when you’ll receive your payment. Allow 45 days beyond mailing timeframes to allow for processing.

Federal Stimulus Payments

(Updated March 2021)

On March 11, 2021, President Biden signed the American Rescue Plan which contains nearly $1.9 trillion in pandemic relief which includes:

• Another round of stimulus payments;
• Extension of unemployment benefits;
• Tax breaks to low- and moderate-income people, including generous tax credits for families with children.

The information below is excerpted from this New York Times article.

Who is eligible for the stimulus payments and how much will they be:
The stimulus payments will be $1,400 for most recipients. Those who are eligible will also receive an identical payment for each of their children.

To qualify for the full $1,400, a single person must have an adjusted gross income of $75,000 or below. For heads of household, adjusted gross income must be $112,500 or below, and for married couples filing jointly that number has to be $150,000 or below.

To be eligible for a payment, a person must have a Social Security number.

Higher earners will receive a reduced payment that zeros out at $80,000 for single filers, $120,000 for heads of household, and $160,000 for joint filers. Payments for children in higher-earning households will decrease in the same way.

College students and older relatives claimed as dependents:
College students and older relatives who have been claimed as dependents by qualifying taxpayers are eligible, however, the payment goes to the qualifying taxpayer, not the child nor the older relative.

How is income eligibility determined for the stimulus payment?
Income eligibility is determined by the most recent year on record at the IRS. If you filed your 2020 taxes, it would be based on 2020 income. If you have not already filed for 2020, it will be based on 2019 income.

When might my payment arrive?
The first round of checks, approximately 90 million payments totaling about $242.2 billion, should be available by direct deposit to bank accounts Wednesday, March 17. An additional 150,000 payments sent in the form of paper checks will be sent out by mail shortly and more payments will roll out in the coming weeks. You can check the status of your payment by going using the I.R.S.’s Get My Payment tool.

Unemployment payments provided for in the stimulus package:
For those already receiving unemployment benefits, payments in most cases will be extended to September 6. The weekly supplemental benefit, in addition to the regular unemployment benefit, will remain $300 but will be extended for another 25 weeks until September 6. The new law provides that, for 2020 taxes only, the first $10,200 of unemployment benefits are tax-free for those with incomes of less than $150,000.

Changes in the stimulus packet regarding student loan debt:
People who qualify for loan forgiveness or cancellation of student loan debt will not have to pay income taxes on debt that is forgiven between January 1, 2021, and the end of 2025.

How will the stimulus package impact the earned-income tax credit?
The maximum earned-income tax credit amount will increase from $543 to $1,502 for childless people. The age range has also widened with childless people being able to claim the credit beginning at age 19, except for certain full-time students. People over 65 will also be able to qualify for the earn-income tax credit. These changes are only for 2021.

Big changes to the child tax credit:
For 2021, the child tax credit for low- and middle-income households will increase to as much as $3,000 per child, and $3,600 for ages 5 and under. The age limit for qualifying children rose to 17 from 16. The credit is fully refundable, which means the household can receive the money as a tax refund, even if the tax bill is reduced to zero. Half of the money can be paid in advance to households over the next six months based on their 2020 tax information or the 2019 tax information if 2020 taxes have not been filed.  The periodic payments, presumed to be monthly, are expected to begin in July.

Here is an example of how the periodic payment may work for a couple earning $150,000 or less: With two children, ages 7 and 9, the family would be eligible for a $6,000 credit ($3,000 per child). If the payments were made monthly, the family would receive $500 per month starting in July and lasting through the end of the year. The remaining $3,000 would be claimed in 2021 on the family’s tax return. Although the changes to the child tax credit are effective currently only for 2021, some expect that efforts will be made to make it permanent.

Who is eligible for the child tax credit?
Married couples with modified adjusted gross income not exceeding $150,000, heads of household with income up to $112,500, and single filers with income up to $75,000 are eligible for the maximum benefit. Families with income more than those listed above will have the extra amount above the original $2,000 credit (either $1,000 or $1,600 per child) reduced by $50 for every $1,000 in modified adjusted gross income that exceeds those income levels.