American Families Will Get an Average of $6,660 in Stimulus Money in 2021
by Christy Bieber | Published on Aug. 30, 2021
How much financial aid will your family get?
The American Rescue Plan Act, which was signed into law in March, was the largest of three COVID-19 relief bills in terms of direct financial aid to American families. The money this bill will distribute over the course of 2021 will provide significantly more income for the typical household -- especially for parents with children.
In fact, according to an analysis from the Tax Policy Center, households with children will get an average of $6,660 in stimulus relief money as a direct result of the coronavirus legislation. Families will get this money in 2021, and some of it has yet to be delivered.
Here's what you need to know.
The typical family is on track for substantial stimulus relief
According to the Tax Policy Center, a married couple with two children will receive an average of $6,660 in stimulus aid in 2021. This money comes from two primary sources:
- Stimulus checks: $1,400 for each adult and each dependent
- Expanded Child Tax Credit: $3,600 per child under six and $3,000 for kids six and older
That said, some families will get more money. There are about 500,000 low-income families in the U.S. with two or more children who will receive around $10,000 in financial aid. This will more than double the annual income for some of the lowest-earning Americans.
Those with fewer children, on the other hand, will not get as much money because they won't receive as many dependent payments. They also won't get as much aid through the expanded Child Tax Credit. For example, the average married couple with no children and an income under $30,000 will receive around $3,041 in stimulus relief.
Higher earners are also on track to get less help because the Child Tax Credit and stimulus checks both have income caps. Only single tax filers with incomes under $75,000 and married couples with incomes under $150,000 are on track to get all of the stimulus aid.
When will you get your stimulus money?
Most people have already gotten their $1,400 stimulus checks, so much of the money that's coming in 2021 has been paid out by now.
However, the expanded Child Tax Credit will provide $250 or $300 per month from July to December 2021, and eligible people can claim the remaining half of the credit when they file 2021 taxes. The monthly payments are being mailed or deposited into people's bank accounts.
That means many families have already received some of their expanded tax credit funds, but they may have more stimulus aid coming. Other pending legislation could also provide more financial relief to some households, depending on which bills pass the House of Representatives and Senate and make their way to President Joe Biden's desk.
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