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Home / Tips and Tricks / Incentive Money and Tax Benefits: How Parents and Older Adults Can Get Extra Money

Incentive Money and Tax Benefits: How Parents and Older Adults Can Get Extra Money



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Under the current incentive proposal, families with children and older adults may qualify for tax breaks that could generate thousands of additional dollars.

Sarah Tew / CNET

The $ 1.9 Trillion COVID-19 Emergency is on schedule for pick up in the Senate this weekThe third stimulus check from up to $ 1,400 per person is perhaps the most important characteristic, but that is not the only money your family can receive eligible to receiveThe American Rescue Plan Act of 2021 – which could be enacted in the coming weeks – also strives for expand the tax credit for children (subject to change), support affordable childcare for young children, make money available for services for the elderly and disabled, and increase the maximum tax credit on employment income for adults, including older workers.

While these terms are in the current version of the bill, legislators may be able to change them before it is finalized. According to The Washington Post, President Joe Biden is also expected to expand child and elderly care in a future bill.

Below we have everything we now know about what the plan entails for the benefit of parents, children and older adults, and how your family could see thousands of dollars in tax breaks this year. (We’ve covered all the ways your family has broken out could be given more incentive to control money time around, too, and here it is how to calculate your incentive money

I have children. How much extra money can my family get in addition to the third stimulus check?

The American Rescue Plan includes several provisions aimed at reducing child poverty in the US, which could give some families an extra infusion of cash this year. Among which:

Stimulus checks for dependents. Under the current invoice, dependents of any age (including children, Adolescents or older adult relatives) will be are eligible for up to $ 1,400 each in incentive payments. This money do not come in the form of their “own” checkbut is added to the household’s total instead. Calculate your estimated share here.

Extension of the tax credit for children. Parents can usually claim a CTC of up to $ 2,000 on their taxes for any child under the age of 17. The current proposal in the American Rescue Plan states that families with children 17 and under would receive a credit of $ 3,000, while families with children under the age of 6 would receive a credit of $ 3,600. It also makes the credit fully repayable, removing both the dollar limit and the income limit that currently prevent many low-income families and children from receiving the full credit, according to the Center for Budget and Policy Priorities.Read more about the changes to the child tax credit hereHowever, details such as periodic rather than monthly payouts are still in the air.

Extended tax credits for childcare. To make childcare more affordable for families, the plan provides a childcare tax credit for children under the age of 13 – totaling up to $ 4,000 for one child, or $ 8,000 for two or more children. The credit would be repaid and available to families earning less than $ 125,000 per year. Those who make between $ 125,000 and $ 400,000 will get a partial credit (find out what your adjusted gross income is hereThe plan also calls on Congress to provide funding to keep childcare centers open and improve wages and benefits for childcare workers.


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I am an older adult. What types of payments or tax breaks does the account hold for me?

The American Rescue Plan includes funding for programs aimed at helping older adults financially as well. Among which:

Stimulus checks for older adults, including dependents. Under the current bill, the elderly (including recipients of SSI or SSDI benefits) would qualify for one third stimulus check from up to $ 1,400, when they meet admission requirementsThis includes older adults who are listed as dependents on someone else’s taxes, although their share of the incentive money would be added to the total amount of the household. (Find out all the rules around stimulus controls for older adults

Expansion of the earned tax credit. This tax credit is designed for people with lower income and can lower your taxable income and wages. The contingency plan proposes to increase this credit for childless adults from about $ 530 to $ 1,500, and raise the income limit for the credit from $ 16,000 to $ 21,000. It would also expand the eligible age range and remove the age limit for older workers. And if your earnings drop in 2021 due to the pandemic, you wouldn’t see your credit cut. (Read more about how to claim the earned income tax credit this year

More funding for services for the elderly and disabled. The American Rescue Plan includes additional funds for elderly and disabled services, but does not elaborate on exactly where that money would go.

Look for more information how a third check can make more money for your family, and when the IRS could send the third stimulus control


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