4th stimulus check 2021 update – $600 payments being sent NOW in California ahead of child tax deadline next week

GARMENT WORKERS PROTECTION

Governor Newson signed the Garmet Worker Protections Act to assist garmet workers in California.

HOW TO UDATE ADDRESS

There are several ways to tell the IRS that your address has changed.

For example, you can use the new address when you file your tax return.

Alternatively, you can file the "Form 8822" or tell the IRS in person or by telephone.

Just keep in mind it'll need certain information to verify your identity, such as social security number and date of birth.

The last option is to send a signed written statement to the IRS with your full name, old address and new address.

You must also include your social security number, individual taxpayer identification number or employer identification number.

Whatever method you choose, keep in mind it can take four to six weeks for a change of address request to fully process.

UPDATE ADDRESS FOR TAX REFUNDS TOO

Lastly, tax refunds could also be delayed or missed out on if you don't update your address with the IRS.

As of early June, average tax refunds were $2,775, according to data from an IRS filing.

The final deadline to file federal 2020 tax returns is on October 15 and it applies to households who filed an extension ahead of the May 15 deadline.

The only exceptions are for members of the military and others serving in a combat zone - they typically have 180 days after they leave to file returns.

Taxpayers in federally declared disaster areas who already have valid extensions also don't need to comply with the October 15 deadline.

UPDATE YOUR ADDRESS

Stimulus checks are also still going out as fresh payments and plus-up ones, with the latter applying if the IRS owes you more than it already paid.

Just like with the child tax credits, these will typically go out as paper checks unless you've signed up for direct deposit payments.

You'll also want to make sure you get the IRS letter verifying when it sent your payment.

This is important for anyone who may be eligible for a stimulus check but who experiences an unexpected holdup receiving their money.

You can check how much you'll get and how you'll be paid by using the IRS' Get My Payment tool.

NON PARENT QUALIFICATIONS CONTINUED

The new rule would require a child to live with a person for more than half a month to qualify for that month’s payment.

If a child lives in different places throughout the year, various people could collect payments, just not at the same time.

WHICH NON PARENTS QUALIFY FOR CTC?

The new rules would mainly benefit low-income individuals, who are more likely to have non-traditional living situations, researchers say. These individuals are the Democrats’ Child Tax Credit's main target.

Approximately 330,000 kids don't qualify because they live with a cousin or neighbor, someone that is not a close relative, the IRS reported. 

“The kids who get excluded under the current relationship test are a lot of the kids who would benefit most from receiving the financial benefits of the CTC.”

These payments would help maintain a “secure environment” with “financial and other support” for education “or similar activities of the individual.”

NON PARENTS TO RECEIVE CTC CONTINUED

The proposal approved last week, part of a massive package of tax and spending changes, could cause IRS enforcement complications.

Taxpayer confusion could arise as the definition used for benefits like the Earned Income Tax Credit would be different, leading to numerous tax definitions of child. 

The Child Tax Credit payment program has been sending monthly payments worth up to $300 per child to 35million families since early 2021.

Not every child lives in a traditional household and the current rules allow someone that’s not a parent to collect the money, but the person must be related. 

The accepted relations include: son, daughter, foster child, brother, sister, niece, nephew and grandchildren, among others. The child must live with the credited person for more than half the year.

NON PARENTS COULD RECEIVE CHILD TAX CREDIT

Lawmakers are looking to expand child tax credit payments of $300 to Americans who are not parents. 

The Dem plan would “award the money to whoever is caring for the child, regardless of whether they’re related.”

This flexibility would accommodate people in various living situations as researchers claim hundreds of thousands of children do not qualify for the benefits because they live with a family friend, for example. 

"Nobody can claim kids who are being raised by someone who is not a close relative — those kids just get cut off from the break entirely,” said Jacob Goldin, a former Treasury official who now teaches at Stanford University’s law school.

WHO QUALIFIES FOR AN UNEMPLOYMENT TAX REFUND?

The American Rescue Plan Act, which was signed on March 11, included a $10,200 tax exemption for 2020 unemployment benefits.

The exemption, which applied to federal taxes, meant that unemployment checks sent during the pandemic weren't counted as earned income.

But because the change happened after some filed their taxes, IRS is issuing refunds for overpayments or it may use it to pay other taxes owed.

Unemployment tax refunds started to land in bank accounts in May and have continued throughout summer, as the IRS processes the returns.

CHECK YOUR TAX TRANSCRIPT

Another way is to check your tax transcript if you have an online account with the IRS.

This is available under "View Tax Records," then click the "Get Transcript" button and choose the federal tax option.

After this, you should select the "2020 Account Transcript" and scan the transactions section for any entries as "Refund issued."

If you don't have that, it likely means the IRS hasn't processed your return yet.

HOW TO TRACK UNEMPLOYMENT REFUND

Unfortunately, there's no one easy way to check the status of the refunds so it may be a waiting game for most taxpayers.

Neither the online Where’s My Refund? tool nor the IRS2Go app reflect what the IRS calls "systemic refunds."

One way to know the status of your refund and if one has been issued is to wait for the letter that the IRS sends taxpayers whose returns are corrected.

These letters are sent out within 30 days of a correction being made and will tell you if you'll get a refund, or if the cash was used to offset the debt.

WARNING FOR CREDIT CARD USERS

But if the US defaults on this debt, the country's creditworthiness could go down.

This would mean the loans people take out to pay for things like mortgages, credit cards, car loans, could cost a lot more.

Lending will get more expensive because banks will tighten their spending if more bonds are not released into the market, as banks usually buy the bonds which increases the money supply in the economy and thus makes loans cheap.

DEADLINE FOR FILING

“The Internal Revenue Service today reminds taxpayers about the upcoming October 15 due date to file 2020 tax returns,” the agency stated in a release.

“People who asked for an extension should file on or before the extension deadline to avoid the penalty for filing late.”

NEW YORK CITY TAX DRIVER STIMULUS

New York City plans to offer more than $60million in financial relief to the city’s taxicab industry.

It comes as the industry has faced tough competition from rivals such as Lyft and Uber.

MICHIGAN CLASSROOM HEROES PROGRAM

In February, teachers in Michigan received $500 as part of the MI Classroom Heroes Grants proposal, MLive reported.

More than $50million was dedicated for teachers and around $20million was set aside for support staff.

The grants were for teachers in K-12 full or part-time education and didn’t apply to substitutes.

NEW YORK ALSO OFFERING PROPERTY TAX CREDITS

New York has a property tax credit for homeowners who make less than $250,000.

It will give homeowners in the range of $250 and $350 in credits.

This was part of New York’s $212billion budget, which was approved in April.

HOW TO APPLY FOR PROPERTY TAX CREDITS

To potentially receive the tax credits, you can apply online before the October 1 deadline.

There are also applications available at any Enoch Pratt Free Library, and Baltimore Community Action Partnership Centers. 

There is also a hotline available at 443-961-6220 if you have any other related questions about tax credits. 

WHAT IF YOU DONT PAY PROPERTY TAXES? PART 2

However, Baltimore Mayor Brandon Scott received mounting pressure from activists and slashed 2,500 resident’s homes from the tax sale. 

“That was a necessary and immediate measure to address the issue, Scott said, according to Baltimore and Maryland public media provider WYPR. 

“But we have a plan for the long term and to equip our residents with the tools and information they need to ensure that they can return to their homes.”

WHAT IF YOU DON’T PAY PROPERTY TAXES?

If you are a Baltimore resident, make sure to pay your property taxes. Those who don’t will be charged interest and fees.

Moreover, it’s possible your home could be listed on Baltimore’s tax sale list.

Typically, homes wind up on the tax sale list because owners are liable for $750 or more in liens, which include unpaid fees and delinquent property taxes.

Ending up the home sale list could lead to third-party investors getting involved and charging interest and legal fees along with the owed liens. 

If the money remains unpaid – then foreclosure on the home is possible. 

MARYLAND PROPERTY TAX CREDITS CONTINUED

Meanwhile, Marceline White, executive director of non-profit Maryland Consumer Rights Coalition, told The Baltimore Sun earlier this month that the tax credits are typically worth roughly $1,000 to city homeowners.

For every $1,000 that combined earnings exceed $30,000, the tax credit limit is boosted by an additional $90.

That trend continues until the maximum $60,000 threshold is met.  

Also, homeowners 70 and older can get retroactive pay for previous years if they were eligible but failed to apply in time.  

MARYLAND PROPERTY TAX CREDITS

Baltimore is urging city residents to apply for property tax credits before next week’s deadline.

This applies to all Maryland residents who own or have legal interest in their homes, and a net worth of less than $200,000.

Furthermore, you will not qualify for the credits if household combined gross income is more than $60,000.

If you meet the requirements, then you can take a look at the tax limit, which is based on your household combined income.  

PENNSYLVANIA REBATE PROGRAM

Meanwhile, the state of Pennsylvania has a rebate program for property tax and rent.

The maximum benefit is $650, but “supplemental rebates” could go up to $975, according to the Pennsylvania Department of Revenue.

To qualify, you must be 65 or older, widows must be at least 50, and those with disabilities only need to be 18.In addition, the annual income limit is $35,000 for homeowners and $15,000 for renters.

The deadline to apply is December 31.

MEDICAL DEBT PAYOUT

Nomi Health is collaborating with charity RIP Medical Deb to relieve qualified low-income Americans of medical debt.

This will impact a total of 176,000 Americans who live in four states including Florida, Nebraska Utah, and Colorado.

The qualifying Americans include those who earn less than twice the poverty line, or debts that are 5 percent or more of their yearly income.

The bulk of the debt will be forgiven in Nebraska and Florida, which amounts to a combined $218million.

The companies didn’t confirm how much debt each individual will get paid off, but if split evenly, it’d amount to just over $1,278 each.

RESPOND TIMELY AND MAKE A PAYMENT IF NECESSARY

But doing nothing might be the worst outcome. If the letter requires a response by a specific date – make sure you do so by then.

If not, you face the risk of losing the right to appeal, as well as higher interest and penalties.

The agency offers several payment options including by cash, check, bank account, or card.

CONTACT THE IRS IF YOU DISAGREE WTIH THE NOTICE

On the notice, you can find a contact number in the upper right-hand corner if you insist.

However, the IRS notes that in most cases it’s not necessary to call them.

If you give the IRS a call, make sure you have a copy of your notice from the agency in front of you.

You can also mail a response to the agency, but allow 30-days for a response.