2022 Stimulus Checks: What You Need to Know & Potential Child Tax Credit Extension

Will more stimulus money be available next year?

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Key points

• Some people missed out on $1,400 stimulus checks authorized by the American Rescue Plan Act.
• Some parents received only part of their expanded Child Tax Credit.
• There's a possibility the expanded Child Tax Credit could be extended.

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Lawmakers have been reluctant to take action in providing a fourth coronavirus relief check, despite repeated calls for another direct payment -- and despite the rapid spread of COVID-19 as the virus mutates into different, more contagious variants.

Despite the fact no fourth stimulus check has been signed into law, some Americans will still see more money deposited into their bank accounts in 2022. Here's what you need to know to figure out the amount of money you could be entitled to next year.

Some Americans could get $1,400 (or more) in 2022

The American Rescue Plan Act was signed into law by President Joe Biden in March of 2021 to provide a third coronavirus relief payment. These payments were worth $1,400 per adult and per dependent. Most people have gotten this money so far, but some people didn't get the full amount.

Specifically, people who added a new dependent to their family in 2021 should be entitled to the $1,400 payment for that dependent (provided they meet other qualifying criteria, such as an income below the allowable limit).

This includes anyone who had a baby or adopted a child. If you added multiple dependents to your family, you could get $1,400 payments for each of them. So parents who had twins in 2021, for example, could receive a total of $2,800 in stimulus checks.

If you're among this group, you should be sure to file your 2021 taxes ASAP towards the end of January to claim your money.

Some Americans could get $1,800 (or more) in 2022

Those who added a dependent may not be the only ones to get another payment from the government. Many other parents could also be entitled to more funds.

See, the American Rescue Plan Act also temporarily expanded the Child Tax Credit for the 2021 tax year. Prior to 2021, the credit was for a maximum of $2,000 per child and only $1,400 of it was refundable. The credit had to be claimed on your taxes and you'd reduce your tax bill with it or could get up to $1,400 back even if you didn't have at least $2,000 in tax liability.

The American Rescue Plan Act raised the amount of the credit to $3,600 for children under age 6 and $3,000 for children aged 6 to 17. And it's now fully refundable. The IRS was also ordered to deliver half of this expanded credit at a rate of $300 or $250 per child deposited into bank accounts from July through December of 2021.

This means half the expanded credit was delivered already for most people. But eligible parents can claim the rest of the credit they are entitled to when they file their 2021 taxes. You could be eligible for a credit worth up to $1,800 per child that reduces your tax bill or that comes in the form of a larger tax refund.

Parents who added a dependent to their family in 2021 may have also missed out on the full $3,600 or $3,000 expanded Child Tax Credit they became entitled to last year. They could receive this money along with their $1,400 stimulus check when filing their returns for the year.

Some Americans could get $3,600 (or more)

Finally, some lawmakers hope to make the expanded Child Tax Credit permanent.

While there are problems that could prevent this from happening, if Democrats are successful in getting Build Back Better passed, every eligible parent could be entitled to the same expanded Child Tax Credit they received in 2021.

This could mean they once again receive up to $3,600 for young children and $3,000 for older children. If these payments are delivered monthly beginning in January (or starting early in the year), this entire amount could come in 2022.

Every American should make sure to find out exactly how much they are entitled to and should make sure they get the full amount of COVID-19 stimulus money to help them through the ongoing challenges that coronavirus continues to present.