In 2021, families in the United States will receive an average $ 3,450 in stimulus funds. That money comes from stimulus checks worth $ 1,400 each, plus an expanded child tax credit and an expanded income tax credit.

But not everyone will receive the same amount of stimulus funds. In fact, lower-income households – and lower-income parents in particular – will receive much more incentive money than other people. Here’s why.

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New admission rules helped lower-income Americans

According to an analysis by the Institute for Taxes and Economic Policy, the country’s lowest-income households have the largest inflow of funds of all families this year. In particular, households with incomes of $ 21,300 or less will receive an average of $ 3,590 in 2021 – just slightly more than the national average.

However, the average payment received by lower-income households is much higher than that of some of their higher-income counterparts. For example, households with incomes between $ 111,300 and $ 247,400 receive average payments totaling only $ 2,830, while households with incomes between $ 247,300 and $ 601,700 receive an average of $ 280.

The main reason low earners are well on their way to putting more government money into it Bank accounts are the income limits for eligibility for all coronavirus stimulus aids, including the extended stimulus checks Child tax credit Payments and the Extended Earned Income Tax Credit (EITC).

If people’s incomes rise, they will lose at least some of that aid money. For example, Americans with incomes up to $ 21,300 in 2021 will get an average of $ 320 due to the expanded EITC. Those with only marginally higher incomes ($ 21,300 to $ 39,800) get an average of just $ 60 from the EITC.

Low-income parents will also see the largest inflow of additional money from the child tax credit. That tax credit was previously worth $ 2,000 per child, but only $ 1,400 of that was refundable. Since households earning less than $ 21,300 rarely have large tax bills worth $ 2,000 or more, most of the time they wouldn’t get their full child tax credit.

However, under the new rules, which will go into effect in 2021, the credit will increase to $ 3,600 for children under six and to $ 3,000 for older children 17 and under. The credit is also fully refundable, meaning that even those with low or no tax bills can get the full amount of money.

According to the Congressional Research Service (CRS) average families could receive $ 5,086 in 2021 and 2022 thanks to the extended child loan alone. This is a huge increase as the CRS showed that households with incomes below 100% of the poverty line would have received an average of just $ 976 without the widening. This is, of course, higher than the average total amount of stimulus money that goes to all low earners, but that’s because there are many households in this group that have no children.

Ultimately, the stimulus money is doing what it is supposed to – it is helping low-income earners and especially low-income parents who may have had serious difficulties dealing with the financial impact of the pandemic and the resulting lockdowns.