The newest COVID-19 relief package, signed last Thursday, will finally include stimulus payments for dependent high school and college-age students. Students claimed by their parents as dependents ages 17 or older are slated to receive $1,400 from the government. Students over the age of 16 were left out of the prior two COVID stimulus payments, so this stimulus money coming their way will no doubt be appreciated.
Why were certain high school grades and all college students not included in previous COVID-19 relief packages? It has to do with how the two previous bills were written. Before, adults claiming children as dependents on their taxes would only receive additional stimulus funds for dependents under 16 years of age. That left an estimated 7 million of dependent students 17 and older without any form of stimulus money. This time around, dependents who are students between the ages of 17 to 24 are eligible to receive the same amount of stimulus money as their parents. For students who lost their after-school or on-campus jobs and who have had to rely on their parents more and more to cover basic expenses, a $1,400 stimulus check should help in regaining some financial independence.
Students should be aware that this stimulus money will not go directly to them. Rather, their parents, as the taxpayers, will receive the additional $1,400 per dependent student. It’ll be up to the student to have their portion of the stimulus check transferred over to them. Secondly, while the income curve for dependent payments is not as steep as it is for independent tax filers, students whose parents make over $160,000 dollars a year combined will not receive a stimulus check.
Alongside expanding stimulus check payments, this latest coronavirus relief bill allocates around $40 million to colleges and universities. Schools are required to spend half of the money they receive towards offering emergency financial aid grants directly to students. Some colleges and universities may award these emergency grants automatically; others may require students to apply for it. Scholarships.com recommends that students who need additional financial aid reach out to their college’s admissions office for more information.
Is this your first time receiving a stimulus payment? How do you plan to use it? Like always, let us know in the comments below.