Update on the Additional Corona grants for 2021

Not yet officially a LAW but has already passed the House of Representatives and Senate and is expected to be signed by the President:

What you need to know: $600 per person and $600 per child up to age 17

Number of comments and highlights:

1. It is given to someone who is considered American for tax purposes (and for that matter the determination is correct for the tax year 2020. Anyone who came to the US on a J / F visa and is considered a foreign resident is Not eligible)

2. It is given to anyone who has a valid SSN for working in the US

3. The $600 amounts are for a child who is actually dependent and their age by the end of the year will not pass the age of 17.

4. Here, too, it is given according to your  income- that is, for a family (couple) - up to an income level of 150,000 dollars and for an individual up to an income level of 75,000 dollars

**(it is also possible to go beyond - the grant amount is reduced and disappears completely when reaching income levels of 87,000 dollars per individual Or $ 174,000 per couple)

5. Here too there is a planning element and it is important - the grant payments are now made immediately based on data from 2019. If in 2019 your income was below the threshold that's mentioned above, and in 2020 your income levels are above the threshold - then the right act is to receive the grant first and only then submit the 2020 reports (well - there is time).

6. If it turns out in the 2020 report that you received less than you should have received (when the income checkup is in accordance with the 2020 data) - it will be possible to claim the gap in the 2020 report.

But it is not the other way around: if you have now received an advance and it turned out according to the 2020 report that there was no eligibility - then there will be no need to return.

Similar to the previous comment - it requires planning: for example - I have a child who is not 17 by the end of 2019 but will pass the age of 17 by the end of 2020 - it is worth first to get the $600 for him and only then submit the report.

7. Payments are made automatically and do not require action.

Credit: Touriel US Tax Advisory LTD (Tax Experts on homeis)