How 2021 COVID-19 Relief Can Effect Your 2022 Finances?

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Much of the Coronavirus relief stimulus tax was given out in the year 2020 and 2021, unaffected a lot of finances these years, but it can still affect your finances in the year 2022.

Although the return and the benefit might be smaller.

This is the list of different kinds of stimulus checks and this is how it can affect you :

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  • Advance child tax credit

This credit might or might not get extended this year yet but will still affect your tax bill.

The credit has been going out from the starting of the year 2020 it was increased from up to $2,000 to  $3,000  and then to $3,600 per child in 2021.

The families, who have not received their payment, and qualify under the child tax credit would be able to get their full payments when they file their taxes in this year 2022.

And, as the credit was based on 2020 income. If a parent or a household’s income was of a greater difference in 2021, they could have to repay some of it in 2022.

  • Unemployment insurance

Unemployment insurance came under the Democrats’ American Rescue Plan, and it gave out checks of $10,200 in 2020.

In 2021 no similar reliefs were offered,

Unemployment rebounded in 2021 so If people do not have their taxes withheld, or withheld too little, they may owe some of that to the government.

  • Stimulus checks

Those who were eligible to receive the third coronavirus stimulus worth $1,400, which went out last year, but did not receive it due to any fault, could finally get their payment when they file their 2020 taxes.

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  • Student loan pause

The pause on federal student loan payments that began in March 2020 is extended till May 1, 2022.

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