Whats Next For Inflation
This is a very encouraging inflation report, Justin Wolfers, economics professor at the University of Michigan, wrote in a tweet. Theres a good chance that inflation has peaked, and is now turning down.
The Federal Reserve has been tasked with the balancing act of raising interest rates high enough to curb inflation without tipping the economy into a recession. The most recent CPI report suggests that the central banks strategy is working in some aspectsbut not all.
However, Federal Reserve Chair Jerome Powell warned in August that interest rate hikes would bring some pain to American households and businesses. The first signs of that pain are emerging.
Corporations across a host of industries have laid off thousands of workers in the last few weeks as earnings have slowed and leaders anticipate economic turmoil in the coming year. On November 9, Meta, parent company of Facebook, laid off 13% of its staff.
The housing market is also cooling at an alarming rate. American homeowners have lost a total of $1.3 trillion in equity in the last three months, according to a report from mortgage software and analytics company Black Knight. The number of homes underwatermeaning theyre less valuable than what their mortgages are worthmore than doubled over the past four months nationwide.
Hawaii: $300 Rebate Payments
In June, Hawaiis legislature approved sending a tax rebate to every taxpayer Taxpayers earning less than $100,000 per year will receive $300, and those earning more than $100,000 per year will receive $100. Dependents are eligible for the rebate, too.
Taxpayers who filed their 2021 state income tax returns by July 31, 2022 can expect to receive their returns in September or October. For residents filing their 2021 return between Aug. 1 and Dec. 31, you can expect your payment up to 12 weeks after filing.
Who Is Eligible For A Third Stimulus Check
Some people may or may not be eligible for receiving a stimulus check. Among people that can expect this check include:
- Individuals with an $80,000 AGI or less
- Head of household with a $120,000 AGI or less
- Couples filing jointly with a $150,000 AGI or less
- Dependents of every age, if the guardian qualifies
- Families with mixed US citizenship
- US citizens who live abroad
- Citizens living on US territories
- Incarcerated people
- Non-citizens that pay taxes
Most people living in the US can indeed be expected to receive a stimulus check, provided they have US citizenship, have a visa, or at least pay U.S. taxes. With that in mind, certain categories are disqualified from receiving a stimulus check and this will precisely help you determine whether you are eligible for receiving it as well or not.
Eligibility is based on your adjusted gross income, and the amount of money that you receive will be calculated on the same basis.
A Timeline Of Past Stimulus Checks
The pandemic stimulus payments started nearly two years ago.
Stimulus checks were first deposited in the spring of 2020 when the COVID-19 pandemic was just beginning, driving up the unemployment rate and causing financial hardship for many. Individuals with income below $75,000 received $1,200 and couples earning below $150,000 received $2,400.
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The Trump administration then in December 2020 $600 per individual taxpayer, $1,200 per married couple and an additional $600 for each child under the age of 17.
A third round came under the Biden administration in March 2021, giving $1,400 per individual and $2,800 per married couple, along with $1,400 per dependent this time regardless of age.
Stimulus Check Missing Payment Issues Or Errors
The IRS will also be mailing Stimulus Payment letters to each eligible recipients last known address 15 days after the payment is made. The letter will provide information on how the Payment was made and how to report any failure to receive the Payment. Note that the IRS or other government departments will not contact you about your stimulus check payment details either.
Why didnt I get a stimulus check? Remember that the IRS has to have your direct deposit details, which is normally only provided if you received a 2018 or 2019 refund. If you file a return and they cannot use their portal to add direct deposit details, then your payment will come via check which could take several weeks. At this checks will likely start arriving at your IRS registered address from the end of April.
Finally you will also likely be able to claim any missing payments in your 2020 tax return as a tax credit. All this unfortunately will mean delays in getting your stimulus payment until issues are worked through.
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Who Will Be Eligible For The Next Stimulus Check
Under the CARES Act, stimulus check eligibility was limited to those with an Adjusted Gross Income of $75,000 or less .
The payment amount decreased for those with an AGI between $75,000 and $99,000 . Those who earned more than $99,000 were not eligible for a stimulus check.
The HEROES Act calls for similar income eligibility limitations. However, it is not likely the HEROES Act will be passed.
The Senate has not officially proposed another stimulus bill at this time, but Senate Majority Leader Mitch McConnell stated this week that they want to target the next stimulus check to those who earned $40,000 or less .
Recommended Reading: When The Next Stimulus Check Coming
What Is The Child Tax Credit
The Child Tax Credit is a type of tax credit given by the government based on how many dependents you have. And it took a big leap this year thanks to the American Rescue Plan. During a normal year, you can claim your kids and get a maximum tax credit of $2,000 for each qualifying child under age 17.1 That means if you owe income taxes, then the Child Tax Credit lowers your tax bill. And if it lowers it so much that now Uncle Sam owes you money, then you can get a refund of up to $1,400 per kidpretty nice.2
Usually, parents have to wait until after they file their taxes for their refund to come rolling in. But thats all changing for your 2021 taxes . With the tax credit, youre automatically enrolled to get half of your refund paid to you up front through monthly payments starting in July 2021 and wrapping up by December 2021. The other half of your refund would be paid out to you after you officially file your 2021 taxes next year.
Basically, the thought process here is that families in need could get their hands on that refund money earlier to help them take care of their immediate needs now. The State of Personal Finance study from Ramsey Solutions found that 35% of parents say this money will go toward paying their bills.
Now, this thing isnt a stimulus check, but its almost like it in a wayalthough this money is coming from the tax return money the government would already be giving to you at tax time. Youre just getting a slice of it sooner.
Also Check: File Taxes To Get Stimulus
Fourth Stimulus Check Update
Biden’s American Rescue Plan Act, which created the third stimulus checks, did boost tax credits for most parents with children under 18, but only for the year 2021. Most parents and legal guardians will receive a tax credit of $3,600 for children under six, and $3,000 per child aged six through 17.
Half of that credit is coming in the form of monthly advance payments to parents beginning July 15 $300 per month for younger kids, and $250 for older ones. That’s similar to the monthly recurring checks that some legislators have called for.
The same law also retroactively exempted a large chunk of unemployment benefits paid out in 2020 from federal income tax. People who collected unemployment in 2020 and paid tax on it are getting thousands of dollars in tax-refund checks.
The American Rescue Plan Act also offers tax credits that cover all or most of the cost of a “Silver” health-insurance plan for six months under the Affordable Care Act, aka Obamacare. You’re eligible for this if you filed for unemployment benefits at any time in 2021, and if you don’t currently get health insurance through Medicare, Medicaid or someone else’s health plan.
Biden’s American Families Plan, which is separate from the American Jobs Plan, will seek to extend those tax credits, including the advance payments, through the end of 2025.
The American Families Plan would also mandate up to 12 weeks of paid parental leave and subsidies for childcare.
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What If My Bank Account Information Changed How Will I Get My Second Stimulus Check
Unfortunately, if your second stimulus check is sent to an account that is closed or no longer active, the IRS will not reissue the payment to you by mail. Instead, if you are eligible to get a payment, you can claim the stimulus check on your 2020 tax return as the Recovery Rebate Credit or use GetCTC.org if you dont have a filing requirement.
Will There Be Another Stimulus Check From The Federal Government
Most people agree that getting another big stimulus check from the federal government is a long shot at this point. Still, some lawmakers keep pushing for another stimulus check to help Americans who are struggling to rebuild thanks to COVID-19 and its economic impact. And with the Delta and Omicron variants out therewould another stimulus check happen for everyone? You never know. Only time will tell, really. A lot of people didnt think wed see a third stimulus check eitherbut it happened.
With the economy and jobs both on the upswing, the need for a stimulus check is way less than its been since the start of the pandemic. Not to mention, a lot of people have been getting extra cash each month from the Child Tax Credit. Add all of that up and its easy to see that there might not be another stimulus check. But if there is one, dont worrywell let you know.
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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.
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.
Recommended Reading: How To Get California Stimulus
What Is The Alaska Permanent Fund
In 1976, Alaskan voters amended their state constitution to establish the Permanent Fund and require that at least 25% of the states oil and mineral royalties be deposited into it. Money from the funds earnings is used to supplement the states general fund as well as pay dividends to eligible residents.
The Alaska Permanent Fund Corporation oversees management of the fund while the Permanent Fund Dividend Division within the state Department of Revenue distributes money to residents. However, neither is responsible for setting the annual payment amount.
While APFCs 60 professionals invest the portfolio to protect the principal and maximize returns, the Legislature has the power of appropriation, including the appropriation of the funds earnings, an APFC spokesperson told Forbes Advisor in an email.
Should I Hold Off On Filing My 2020 Tax Return And What Happens If The Irs Uses 2019 Tax Information
It likely wont make a difference in the longer term other than to update dependent or payment data, but the IRS will only use your 2020 tax return data to determine eligibility for this round of stimulus checks if they have processed your return . If your 2020 return has not been filed and processing, they will use 2019 tax data for payment.
If your 2020 return is filed and/or processed after the IRS sends you a third stimulus check, but before July 15, 2021 the IRS would send you a second payment or require a repayment for the difference between what your payment should have been if based on your 2020 return and the payment actually sent based on your 2019 return.
Read Also: How To Find How Much Stimulus I Received
The Future Of Alaska Pfd Payments
The $3,200 payments are the second largest in history, when adjusted for inflation, but residents shouldnt necessarily assume that large Permanent Fund dividends will be an annual event.
Those arguing for larger payouts this year pointed to higher energy costs as a driving factor. Times are tough, Rep. Mike Prax said according to news reports after the budget vote. People are in a dire position, so if we can do anything to help them this year, I think thats the appropriate thing to do.
If inflation and energy costs shrink during the next year, then Alaskans may find their dividends will be smaller in 2023 as well.
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Stimulus Blamed For High Inflation
The final round of $1,400 direct payments which started in March 2021 along with the massive amounts of covid-19 relief funds injected into the US economy have been blamed for the higher-than-normal inflation afflicting the nation. The Federal Reserve Bank of San Francisco looked at the effect of the American Rescue Plan specifically on inflation.
It found that Bidens stimulus is temporarily ratcheting up inflation, but not causing overheating as has been suggested. Their analysis found that the ARP, is expected to cause inflation to increase by about 0.3 percentage point in 2021 and by a bit more than 0.2 percentage point in 2022. The impact in 2023 is negligible.
Other factors are helping push up prices on just about everything, a major source has been disruptions to supply chains caused by the pandemic. This caused manufacturers to scramble to secure scarce supplies of inputs to make their products. Americans in turn have been scooping up consumer goods with excess savings they acquired during the lockdown increasing demand on limited supplies.
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Two Weeks Practical Tips Big Results
Well talk through ways to find extra money when shopping for groceries, eating out, paying your bills, and managing lifestyle expenses each month. Be sure to stick with it for 14 days to get the best results!
Youll get an email each day for 14 days with a small task.
Each task will help you find extra money in your lifestyle.
The tasks typically take 510 minutes a day.
What If I Havent Gotten My Payment Yet
First, go ahead and check the IRS Portal to see what the status is of your payment. You can see if its been processed and is taking longer to get to you. While youre there, look and see if your payment is coming by mail or direct deposit. If its coming by mail, that could be why its taking longer. If youre expecting the payment to hit your bank account through direct deposit, double-check to make sure they have your correct banking info.
If things still dont make sense, then you can submit something called a payment trace to the IRS . But make sure you give it at least five days after the date you were expecting to get the payment in your hands.
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Achieve Financial Control How Much Debt Do You Have
Or speak to a debt consultant
The coronavirus stimulus check was meant to help Americans to protect their financial well-being but the first check distributed only went so far. Can we depend on another stimulus check?
As the pandemic continues, the government is looking for more solutions to ease the financial difficulties so many Americans find themselves in at this time. Another stimulus package is being considered and has passed the Houseincluding a second round of stimulus checksalthough there is a lot of debate in the Senate about the details.
At the time this post was published, government officials are still determining what kind of financial support should be included in the next stimulus package. Here is a look at whats being discussed, and how you can plan accordingly.