Congress is nearing the finish line, while lawmakers will succeed by mid-March in passing President Joe Biden’s $ 1.9 billion relief package.
Included in the package are the third round of stimulus checks – this time for up to $ 1400 – plus the extension of federal unemployment benefits, an extended child tax credit and more.
So if you need more help paying off debt or covering household expenses, you can start receiving it within a few weeks.
Collectively, government relief could provide a pile of money to a family of four this year at least $ 14,000, according to a new analysis. Here’s how your household can get such a windfall in 2021.
How does math work at $ 14,000?
Consider the Smiths, a hypothetical family of four with two adults and two children, 7 and 10. Provided they meet the income criteria for stimulus checks, the Smiths would have received $ 2,400 from the second round of payments in January: $ 600 for each adult and each of the children.
If Congress passes the current bill on aid and Biden signs it, the family will receive another $ 1,400 per person, for a total of $ 5,600. Add that to the $ 2,400 from earlier this year, and you get a total of $ 8,000 in stimulus checks for the household.
Another part of the president’s COVID rescue package increases the tax credit for children to give low- and moderate-income families $ 20,000 for each child between the ages of 6 and 17 by 2021. Half of the money is paid out monthly (another type) of “stimulus check”) during the second half of the year.
The Smiths would therefore receive an additional amount $ 6,000 for the children – for a total of $ 14,000 this year in government relief.
Some households get even more than that, says a report from financial services firm Raymond James.
How can you collect more than $ 14,000?
Families with children under 6 can expect to receive $ 3600 per child credits instead of $ 3000.
So let’s say you’re a parent who’s eligible for stimulus tests and two children aged 3 and 5. $ 7 200 – to bring your uncle Sam’s move to a huge point this year $ 15,200.
There is even more money if you are among the millions who were thrown out of work during the pandemic.
In addition, the federal government pays unemployment benefits in addition to the usual state benefits. The current $ 300 per week payment will run out soon; the legal aid would increase the federal benefits to $ 400 per week and extend it until August.
Given all the different types of federal COVID assistance offered to families and individuals this year, “the U.S. consumer will be largely in the best financial position they have been on average for at least 40 years (probably ever),” writes Tavis McCourt, analyst at Raymond James.
But McCourt adds that while cash flow increases the chances of economic recovery, it threatens to increase inflation in the short term.
What if you are not eligible for $ 14,000?
Just this week, Biden agreed on a compromise with more conservative Democratic senators who would target the stimulus tests and restrict new revenue. Households with incomes in excess of $ 160,000 (or $ 80,000 for single earners) will miss out on third-round direct payments altogether.
If your household is not eligible for stimulus checks or child credit, and you need more cash yesterday, here are some things you can do:
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Reduce the cost of your debt. Credit is convenient, but interest is a killer. If you are building up a lot of interest these days, there is a better option. Make your debt easier to carry – and download earlier – by folding your balances into a single debt consolidation loan at a lower interest rate.
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Cut off your insurance accounts. Car insurance companies handed out discounts to drivers living near the house through the pandemic. If your insurer is not moving, it may be time to buy a better price. And while you’ve searching, you can save hundreds on your homeowners insurance by comparing rates to find a lower price.
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Reduce your mortgage by refinancing your mortgage. If you have not taken care of a lower interest rate on your home loan in the past year, what are you waiting for? The rates remain historically low, and refinancing your mortgage can reduce your monthly payment.
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Cut out your budget and “make your own” stimulus test. By finding some creative ways to cut back, you can rearrange your budget to get another $ 1400. Cut your cable service or any monthly entertainment subscriptions you do not use. Do you have a hobby or special talent? Turn it into a side issue to bring in extra income. And download a free browser extension that will automatically search for better prices and coupons when you shop online.