Stimulus Checks: Who Gets One Who Doesn’t
The stimulus checks that Treasury Secretary Steven Mnuchin said will be deposited into Americans’ bank accounts “within three weeks” won’t be enjoyed by everyone. That’s because the massive $2 trillion stimulus package, the Coronavirus Aid, Relief, and Security Act, excludes some Americans from receiving the one-time payments, which are set at $1,200 for adults and $500 for children.
Here’s who won’t get a stimulus check:
- Children who are 17 or 18 years old.
- Many college students between the ages of 19 to 23.
- Adults who can be claimed as dependents.
- Nonresident aliens .
- Individuals who earn more than $99,000 or married couples earning more than $198,000.
- People who haven’t filed 2018 and 2019 tax returns.
Social Security Payments For November: When Your Money Will Arrive
Some November checks have arrived for Social Security and SSI beneficiaries. Hereâs how the schedule works.
Katie Teague
Writer
Katie is a writer covering all things how-to at CNET, with a focus on Social Security and notable events. When sheâs not writing, she enjoys playing in golf scrambles, practicing yoga and spending time on the lake.
The Social Security Administration disbursed some payments to Social Security and Supplemental Security Income recipients earlier this week. Starting in January 2023, youâll get your benefits increase on your check that starts in . Weâll explain why below and how the timing of Social Security payments works.
Youâll get a letter in the mail in December about your Social Security benefits increase for 2023. Itâll have details about your individual benefit rate increase for next year â you can also access your benefits online on the Social Security Administrationâs website. Just make sure you sign up for a My Social Security account by Nov. 15.
How Much Is The Third Stimulus Check
The third round of stimulus checks included a $1,400-per-person direct payment. This amount topped off the $600 payment that most eligible folks already got as part of a previous COVID-19 relief package. Congress passed that one at the end of December 2020 for a total of $2,000 in stimulus payments per person. So, how much should you have gotten in your third stimulus check? Find out with our stimulus calculator!
The stimulus payments are one part of Bidens much larger COVID-19 relief plan that also expanded the Child Tax Credit, extended unemployment benefits for people who lost their jobs during the COVID-19 pandemic, increased the Child and Dependent Care Credit, and provided more aid for renters and landlords.6 Yep, its a mouthful.
Also Check: How Can I Apply For Stimulus Check
Ssa Ended My Disability Benefits Because Of A Cdr Determination I Submitted A Request For Reconsideration To Appeal Ssas Decision But I Did Not Elect That My Disability Benefits Should Continue Can I Now Request That My Benefits Continue Until There Is A Determination On My Appeal
Date: November 6, 2020
Yes. You may, at any time, submit a late request to continue your benefits while we make a determination on your appeal. We will grant the request if you provide a good reason. We have experienced delays in processing certain requests for reconsideration of initial disability cessation determinations during the Coronavirus Disease 2019 pandemic. We will accept this delay as a good reason to resume benefit payments when you file a late request and the following apply:
- The determination notice ending your disability benefits is dated on or before August 30, 2020 and
- Your request for reconsideration of the cessation determination is still pending with us.
Social Security: First Checks With 2023 Cola Increase Arrive Today
Social Securityâs cost-of-living adjustment this year is the biggest in four decades.
The first Social Security checks reflecting the 2023 cost-of-living adjustment, or COLA, arrive today. Benefits are being increased by 8.7% this year, the biggest bump in more than 40 years, to help fight ongoing inflation.
This first batch of checks is for long-time recipients and those who receive both Social Security and Supplemental Security Income. Other beneficiaries will receive their payments throughout January, depending on the day of the month they were born.Read on to find out when your Social Security payment should arrive and how your payment date is determined.
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What If I Dont Have A Bank Account
If you dont have a bank account, a paper check will be sent to the address you listed on your tax return.
Direct deposit is the quickest and safest way to get payments. Alternatives to receiving a paper check are opening a bank account or using a prepaid debit card. Once you get a card, you may need to contact the company directly to find the account and routing numbers needed for direct deposit. To find a bank, you can view this list of accounts offered by financial institutions that meet national standards. You can also use payment apps like CashApp, Venmo, or PayPal.
Do not provide the bank account information for someone else. Different names on the tax return and bank account will trigger a reject of the deposit, causing the IRS to send you a paper check which will delay the delivery of your payment.
What Is The New Child Tax Credit Amount
Heres how the numbers break down: The American Rescue Plan bumps the Child Tax Credit up to $3,000 for children ages 617 and $3,600 for children under age 6.3 Expecting a baby in 2021? First of all, congrats! And heres some more good news for youbabies born in 2021 will qualify for the full $3,600. Have a college student? Parents can receive a one-time payment of $500 for each full-time college kid ages 1824.4
So, for a family that has three children , heres how it all breaks down:
Lets say they have three kids that are ages 12, 7 and 4 and a household income of $72,000 a year. Their new Child Tax Credit would be $9,600.
But remember, instead of applying the full amount of the credit to income taxes they might owe or getting a refund after they file their taxes, parents can get the credit up front in monthly payments of $250 for each qualifying child .5 So that family of three in our example would get $800 a month from July through December. Wow!
Right now, this change would be only for 2021but theres talk in Congress and the White House to make it a permanent thing for the next five years under Bidens American Families Plan. Yep, there are a lot of plans and acts to keep straight these days.
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Change In Income Can Affect How Much Stimulus Money You Receive
Many Americans lost their jobs or had their hours reduced dramatically, which is likely going to impact their total income for tax year 2020. This is noteworthy because your 2019 tax return may not be reflective of your current income status. For example, someone may have made $125,000 during tax year 2019, but suddenly lost their job in early April 2020 causing their total income for 2020 to take a nosedive. Unfortunately, if the IRS uses the 2019 tax return, this individual might be disqualified from receiving a COVID-19 stimulus check or will receive a greatly reduced amount. If you find yourself in this situation, make sure to file your 2020 tax return and pursue a stimulus payment rebate in 2021.
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Many Americans Have Unclaimed Stimulus Funds
According to the GAO, the IRS was unable to get stimulus payments to some people who were owed them in large part because there was no income requirement for the money and because the payments came in the form of refundable tax credits. This meant many low-income individuals and non-tax-filers were entitled to receive payments but the IRS had no way to contact these individuals.
Because of this, the GAOs report indicated that the agency recommends that Treasury and IRS use available data to develop an updated estimate of total eligible individuals which they could use to better tailor and redirect their ongoing outreach and communications efforts for similar tax credits.
The GAO also went on to explain that people who were eligible for the third stimulus payment or for the expanded Child Tax Credit who did not receive either can submit a tax return by Oct. 17, 2022 to get their funds. They also have the option to request an extension and file a simplified return at the ChildTaxCredit.gov website.
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New Mexico: $500 Rebates
In early March, Gov. Michelle Lujan Grisham signed a law to send multiple payments to state taxpayers.
Low-income New Mexico residents could apply for relief payments of at least $400 starting on September 26. The application deadline was October 7, 2022.
The low-income relief payments are part of a $20 million line item in the state budget for economic relief efforts. Application approvals are limited to the budget allotment and the lowest-income families will be paid first.
Another payment, in the form of a refundable income tax rebate, was issued to all taxpayers. Single filers received $500, and joint filers received $1,000. This rebate was split into two equal payments, delivered in June and August 2022. The funds were sent automatically to taxpayers who filed a 2021 state return.
If you dont typically file a state income tax return but do so for 2021 by May 31, 2023, youll receive your rebate by direct deposit or check. If you owe tax from your 2021 return, it will be deducted from your rebate amount.
Read more: New Mexico Families Receive Rebates Of Up To $1,500 In 2022
New Jersey: $500 Rebate Checks
In fall 2021, the New Jersey state legislature approved a budget measure to send one-time rebate checks of up to $500 to nearly a million families.
New Jersey also sent payments to those who file taxes using a taxpayer identification number instead of a Social Security number. The Excluded New Jerseyans Fund applied to nonresident and resident aliens, their spouses and dependents.
The fund has stopped accepting new applications.
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When Should I Get My Payment
The IRS was given hard and fast deadlines to send the two rounds of Economic Impact Payments out to American families. The first round of payments had to be sent out by December 31, 2020. The second round had to be sent out by January 15, 2021.
What this means: If you have not received the first or second round of payments yet, then you will not be getting them in advance. The good news is that you can still do something to get these payments. Read below.
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Th Stimulus Checks Given Out To Targeted Groups
Some states are digging into that wad of cash the government gave them and giving out the fourth stimulus checks to specific groups of people. The requirements look different for each state, but all seem to have a few things in commonlike falling into certain income levels or going through some kind of hardship.
The Grand Canyon State has a different take when it comes to stimulus checkstheyre giving them out to people who are going back to work. Arizonas Back to Work Program is offering $2,000 to those who got a job after being on unemployment.3 But you have to hold down your new job for at least eight weeks before getting the benefit.
The Golden State is the only one on the list to give out big ol broad-sweeping stimulus checks that look like the ones the federal government gave out. Heres how their numbers break down: Californians making $75,000 or less were sent a one-time check of $600 or $1,200 as part of the Golden State Stimulus I.4 And with the Golden State Stimulus II, they could be eligible for a second stimulus payment anywhere from $500 to $1,100.5 Thats on top of extra money the state paid out through the Young Child Tax Credit to those who have children age 6 or younger.6
These guys decided to shift their focus to giving their stimulus checks to the unemployed. They sent $375 to folks who had gotten at least one unemployment check payment between March 15, 2020, and October 24, 2020.7
Overview Of Key Issues
aSee Centers for Disease Control and Prevention, Public Health Surveillance: Preparing for the Future . bFor the Public Health Science Agenda for COVID-19 see , accessed January 31, 2022. cFor the COVID Data Tracker see , accessed March 2, 2022.
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Pros Of Taking The Monthly Child Tax Credit Payments
- You can use the money now. If youre having a hard time making ends meet, this is a great way to have extra cash flow to keep a roof over your head and feed your family.
- You can keep more money in your own pocket during the year. And Im a really big fan of thatbut only if it doesnt create a tax mess for you when it comes time to file your 2021 taxes.
- You dont have to jump through any extra hoops. If youve filed your taxes in 2019 or 2020 and want to get the advance child tax payments, you dont have to do anything else or sign up for anything. Youre automatically enrolled and are all set.
- You wont have that lump sum. We know some people like to use their tax refund as a glorified savings account. They get a big refund and cant wait to spend it on something theyve wanted all year. But if youve been around here for a while, youve heard me tell you to set up your tax withholding so that youre getting the most money you can in your paycheck. Which means youll be getting less money in your tax return each year . But keeping more money in your actual paycheck means you can put your hard-earned dollars toward your goals now. Its silly to let the government hang on to your money until tax time. Its your money!
What Can I Do If I Have Not Received My Eip Money By Those Deadlines
If you have not received all or some portion of your Economic Impact Payments by the deadlines above, you will have to file a 2020 tax return and claim these amounts. You claim them on line 30 of the 2020 Form 1040 as a “Recovery Rebate Credit“. This is another name for the EIP stimulus payments. If you did not get all or a portion of the EIP payments in advance, then you can claim them on line 30 of your tax return for 2020.
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Holes In The Safety Net
But that’s not the whole story.
For one, Democrats and the White House did somewhat target the checks.
The American Rescue Plan phased out check eligibility after $80,000 of income for single adults, down from $100,000 in the prior two federal relief measures.
The concepts of targeting and stimulus checks also don’t necessarily mesh.
About 90% of households got a CARES Act stimulus check, said Pomerleau of the American Enterprise Institute. Even with a lower phaseout range, nearly 85% of households are eligible for $1,400 checks, he said.
“I don’t think there’s a really strong case to target the checks,” Pomerleau said. “One argument against is you really can’t do it.”
Their primary objective was to issue money quickly and to plug any gaps in the social safety net, he said.
Lowering income thresholds could also overlook some ailing households.
For example, some higher earners may have lost hours during the pandemic downturn. They may not have qualified for unemployment benefits or any extra jobless aid doled out over the past year, for example.
In February, the number of people who wanted a full-time job but were working part-time was up almost 2 million versus pre-pandemic levels, according to the Bureau of Labor Statistics.
Plus, the IRS is using 2019 tax returns to determine eligibility, if the agency hadn’t yet processed a 2020 return.
Keeping similar legislative language lent to speedier check delivery, Holtzblatt said.
If I Take The Advance Payment How Does This Affect Next Years Taxes
Good question, you guys. The biggest thing here is if your income increases in 2021, then you might get more money in the Child Tax Credit than you actually should get. Remember, guys, theyre basing the amount they think you should get on your 2020 tax return . So,if you or your spouse got a raise at work and it bumped you over the qualifying amount, the IRS doesnt know about it.
If youre super confused by all of this, youre not alone. The State of Personal Finance study found that 70% of parents who qualify for the Child Tax Credit money say theyre afraid to spend it because they dont know how it will impact their taxes next year. That totally makes sense, guysbut dont stay in the dark here. Its so important to be in the know about these changes and how they affect you.
With all these tax changes, its a good idea to call in the folks who live and breathe this stuff. If you want your taxes done the right way, check in with a RamseyTrusted tax pro. Theyre the experts who can walk you through this new Child Tax Credit change and how it impacts your money. And theyll help you make the right call on whether you should take the advance payments or leave them alone. They can also show you the best way to plan out your taxesyou know, so you dont end up with a huge scary bill or a crazy high refund. When it comes to your tax questions, leave it to the pros.
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Rachel Cruze
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