Other Features Of The Bill
How does the aid for small businesses and nonprofits work?
Good news here, as you may be eligible for forgivable loans. Our colleague Emily Flitter covered the details in a separate article. Aides to Senator Marco Rubio, Republican of Florida, also wrote a one-page summary of those provisions.
Will there be damage to my credit report if I take advantage of any virus-related payment relief, including the student loan suspension?
No. There is not supposed to be, at least.
The bill states that during the period beginning on Jan. 31 and continuing 120 days after the end of the national emergency declaration, lenders and others should mark your credit file as current, even if you take advantage of payment modifications.
If you had black marks in your file before the virus hit, those will remain unless you fix the issues during the emergency period.
Credit reporting agencies can make errors. Be sure to check your credit report a few times each year, especially if you accept any help from any financial institution or biller this year.
What if I find black marks anyway?
File a dispute with the credit bureau, but it may take a while to fix them. The Consumer Financial Protection Bureau has told credit bureaus and others that during the pandemic they can take longer than the usual 30 to 45 days to meet the dispute-response deadline, as long as they are making good faith efforts.
Is there any relief for renters in the bill?
Child Care: $56 Billion
The pandemic had a devastating impact on child care providers, faced with increased costs and a decline in enrollment. But many parents need them to be open so that they can return to work.
About $56 billion in grant money is making its way to child care providers so that they continue operating. They can spend the money on a variety of uses including cleaning products, staff wages, rent and mortgage payments, utility bills, and providing financial assistance to families.
How Many Stimulus Checks Did Americans Get
In total, Americans received three stimulus checks since 2020.
The first round of checks was authorized under the Coronavirus Aid, Relief, and Economic Security Act, that President Donald Trump signed on March 27, 2020.
The payments for the first checks were $1,200 per person, or $2,400 for those filing jointly, plus $500 per qualifying child.
In December 2020, the second round of stimulus checks was sent out as part of the Consolidated Appropriations Act.
The payments for the second checks were $600 per person, or $1,200 for married individuals, plus $600 for each qualifying child.
One year following the first checks, the third round of stimulus checks was sent out earlier in March under the American Rescue Plan.
The payments for the third checks was $1,400 per person, or $2,800 for married couples, plus an additional $1,400 per eligible child.
How Many Stimulus Checks Were There
Stimulus Checks are the financial relief provided by the federal government to all eligible residents in the United States during the covid-19 pandemic. There was a total of three stimulus checks.
The financial aid was distributed in three phases, of which the 1st round was provided in March 2020 by Congress as a part of a $2.2 trillion financial relief package. In March 2021, Mr. President Joe Biden again issued a $1.9 trillion American Rescue Act. Finally, the last round of the stimulus check was issued for taxpayers who can earn up to $75000 a year.
When Was The Third Stimulus Check Approved
By now, youve heard the history of how a third stimulus check happened: Just as most Americans received their $600 second stimulus check from the U.S. Treasury during the coronavirus pandemic, President Joe Bidens $1.9 trillion American Rescue Plan included a third stimulus payment of $1,400.
The American Rescue Plan passed first in the House and then Senate and was signed by President Biden on March 11, 2021. Lawmakers wanted the bill to go into effect before some COVID-19-related unemployment benefits expired in mid-March 2021.5And they hit their deadline just in the nick of time.
Also Check: Will There Be Another Stimulus Check In 2022
How To Return A Paper Check You Have Not Cashed Or Deposited
If youre one of those folks who has to send the money backand you havent cashed or deposited your check yetheres what you need to do:
- Write Void in the endorsement section of the check, but dont fold or staple itdont even put a paper clip on it.
- On a sticky note or sheet of paper, write down the reason youre sending the check back.
- Mail the check and the explanation back to your local IRS office .
Also Check: Stimulus Checks For Social Security Disability
Stimulus And Relief Package 4
On Dec. 21, 2020, Congress passed the CAA, a $900 billion stimulus and relief bill, attached to the main omnibus budget bill. Then-President Trump signed the bill on Dec. 27, 2020, but urged Congress to increase the direct stimulus payments from $600 to $2,000. Its contents included:
If you were eligible for stimulus payments and missed out on getting them, you can file for a Recovery Rebate Credit. You can claim this refundable tax credit when you file your 2021 tax return, and 2020 as wellâif you havenât yet filed for that year.
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Can I Claim A Stimulus Check For Someone Who Is Deceased
Yes. For the third stimulus check, people who have died on or after January 1, 2021, are eligible to receive the third stimulus check. However, for married military couples, the date of eligibility is expanded. If the person who died was a member of the military and died before January 1, 2021, the surviving spouse can still receive the third stimulus check, even if they dont have an SSN.
For the first and second stimulus check, the IRS has stated that people who died on or after January 1, 2020, are eligible to receive both payments.
If they didnt receive the stimulus payments or didnt receive the full amounts that they are eligible for, spouses or other family members can file a 2020 federal tax return and claim it as part of their tax refund or use GetCTC.org if they dont have a filing requirement. The deadline to use GetCTC.org is November 15, 2021.
How Many Stimulus Checks Have There Been
If youre like most people, everything thats happened since March 2020 is a blurincluding how many stimulus checks there were and when the checks went out. Heres a quick reminder.
First stimulus check: March 2020 $1,200
Second stimulus check: December 2020 to January 2021 $600
Third stimulus check: March 2021 $1,4004
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Georgia: $250 Rebate Payments
Thanks to a historic state budget surplus, Georgia residents who filed both their 2020 and 2021 tax returns were eligible to receive rebate payments based on their tax filing status:
- Single filers: Maximum $250
- Head of household: Maximum $375
If you owed income tax or other payments to the state, such as delinquent child support payments, you may have received a smaller rebate. Partial-year residents may also have received a smaller rebate.
Eligible recipients who filed their 2021 taxes by April 18 should have received their refund in August.
Georgia taxpayers can learn more via the Georgia Department of Revenue.
When Can We Expect The Next Stimulus Check
The third stimulus check passed through a process called “budget reconciliation,” which allowed Democrats to push the legislation through with a simple majority vote in the Senate. The bill did not get any Republican support.
There is a limit on the number of times reconciliation can be used. Democrats are now focused on other priorities and Republicans have made it clear they’re not interested in providing additional COVID relief. As such, it’s unlikely a fourth stimulus check will be authorized. This is especially true as states ease lockdowns and vaccinations ramp up.
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How Can I Check My Stimulus Check Status
The IRS has created a website where you can check the status of your stimulus payment.
The Get My Payment tool is no longer updating for either the first or second stimulus check. However, you can use it to see the status of your third check.
- If your payment has been processed. the IRS will specify its status including whether it has been sent, the date issued, and whether the money will be directly deposited or mailed.
- If your status reads “Payment Not Available.” The IRS either hasn’t yet processed your payment or you aren’t eligible for one.
- If it reads “Need More Information.” Your check was returned to the IRS after an attempted delivery. Give the IRS your bank information to receive your money.
If you did not get your first or second check, you’ll need to file a 2020 tax return to get the payment.
Focus On What Goes On At Your Housenot The White House
Its hard not to worry as you watch billions and trillions of dollars fly out the window in Washington, D.C. And while those things matter, the truth is, you have ultimate control over your money and what choices are made in your house. You have the power to improve your money situation right nowtodaywithout having to rely on the government.
And it all starts with a budget. Because when you make a plan for your money, you’re more likely to make progress and hit your financial goalsstimulus check or not. So, go ahead and create your budget with EveryDollar today! Take control of your future and get the hope you need.
About the author
Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners. Learn More.
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Stimulus And Relief Package 2
The second relief package, the Families First Coronavirus Response Act , or Phase Two, was signed into law on March 18, 2020. The law allocated a budget for relief that included the following:
- Providing money for families who rely on free school lunches in light of widespread school closures
- Mandating that companies with fewer than 500 employees provide paid sick leave for those suffering from COVID-19, as well as providing a tax credit to help employers cover those costs
- Providing nearly $1 billion in additional unemployment insurance money for states, as well as loans to states to fund unemployment insurance
- Funding and cost waivers to make COVID-19 testing free for everyone
Separately, on March 18, 2020, the Federal Housing Administration and the Federal Housing Finance Agency implemented foreclosure and eviction moratoriums for single-family homeowners whose mortgages were FHA-insured or backed by Fannie Mae or Freddie Mac. The eviction moratorium on FHA and other government-backed loans was extended to Sept. 30, 2021. Additionally, the FHFA announced on Sept. 24, 2021, that Fannie Mae and Freddie Mac would continue to offer COVID-19 forbearance to multifamily property owners who were experiencing a financial hardship due to the COVID-19 emergency.
What Should You Do With Your Third Stimulus Check
Lets be real: Three stimulus checks in a year or so is not normal. This third payment can go a long way to help you catch up on bills, pay off debt, or build up your savings. And for a lot of folks, those stimulus checks have kept food on the table. In our State of Personal Finance study, we found that 41% of people who got a stimulus check used it to pay for necessities like food and bills.
So, based on your situation, heres where you start:
If youre out of work or missing a paycheck, use this stimulus money to protect your Four Walls:
Focus on the necessities so you can have peace of mind as you keep looking for work or get your income back up. That means if youre working the Baby Steps and youre out of work, pause your plan for now. Pile up cash until you have a steady income again. Then you can attack your debt. Theres nothing like fighting through a financial crisis to light your fire to be debt-free as soon as possible!
On the other hand, if your job is safe and you feel like itll stay that way, use your stimulus money to build momentum on whatever Baby Step youre on. Put your debt snowball into overdrive. Knock out your fully funded emergency fund . Or talk to your investment professional about giving your retirement a big boost !
No matter your situation, dont forget to budgetits the best way to make your money go further. EveryDollar is our free and simple budgeting app that will help you see exactly where you need to cut back on your spending.
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Most Stimulus Payments Were Saved Or Applied To Debt
US households report spending approximately 40 percent of theirstimulus checks, on average, with about 30 percent saved and another30 percent used to pay down debt.
The Coronavirus Aid, Relief, and Economic Security Act, enacted on March 27, 2020, was designed to bolster household incomes and support consumer spending. It achieved the first goal, but had only a modest impact on consumer spending. Survey data on household behavior suggest that nearly 60 percent of the stimulus spending went to pay off debt or was saved. Of the roughly 40 percent that was spent on goods and services, consumers favored food and beauty products rather than large durables like cars or appliances. The averages mask considerable variation among households. Some 20 percent saved virtually all of their stimulus check another 40 percent spent nearly all of it. Roughly 20 percent used most of their federal payment to reduce their debts.
These findings inHow Did US Consumers Use Their Stimulus Payments? reflect general patterns seen in 2001 and 2008, when the federal government also countered economic downturns with direct transfer payments. The 2020 payments, however, were much larger and the recipients were somewhat less likely to spend than in the past.
Impact Of The Coronavirus Stimulus Checks On The Economy
The emergence of the COVID-19 virus early in 2020 had a huge impact on this countrys economy, with federal and state agencies, as well as many private companies from different sectors, forced to stop their operations in order to preserve the health of their workforce and to prevent the spread of the virus. As a result, the unemployment rate suffered a substantial increase, reaching 14.7% in April 2020, the highest rate observed since data collection began in 1948. The high unemployment rate disproportionately impacted the nations communities of color and low-wage workers. Many households, mainly those with children, were unable to pay for their basic needs: food, housing, utilities, and transportation.
The second stimulus package, The Coronavirus Response and Relief Supplemental Appropriations Act of 2021, was signed by former President Donald J. Trump on December 27, 2020. It was a $900 billion package that included disbursements of up to $600 per household plus an additional $600 for dependent children ages 16 or under. As in the previous stimulus package, those individuals who earned up to $75,000 in 2019 received the full stimulus check, while a gradually smaller figure was provided to those with higher annual incomes, up to a maximum of $87,000.
Table 1. U.S. Households Spending Priorities with Coronavirus Stimulus Money
Primary Market Corporate Credit Facility And Secondary Market Corporate Credit Facility
On March 23, 2020, the Fed created the Primary Market Corporate Credit Facility to buy corporate bonds to ensure that corporations could get credit. At the same time, it created the related Secondary Market Corporate Credit Facility , which bought up corporate bonds and bond exchange-traded funds on the secondary market.
The SMCCF started purchasing bond ETFs on May 12, 2020, and said it would begin purchasing individual bonds to create a âbroad, diversified market indexâ of individual U.S. corporate bonds starting on June 16, 2020.
The combined purchase limit for the programs was $750 billion. The Treasury Department contributed a total of $75 billion in initial capital to these two programs from the ESF: $50 billion for the PMCCF and $25 billion for the SMCCF. The premise was that these programs made banks more willing to lend to corporations because they knew that they could sell the loans to the Fed. Both programs stopped purchasing bonds on Dec. 31, 2020.
What If I Am Eligible For The Stimulus Checks But I Didnt File A 2019 Or 2020 Tax Return And Didnt Use The Irs Non
You can file a tax return even if you dont have a filing requirement to get other tax credits, such as the Earned Income Tax Credit.
If you didnt get your first or second stimulus check or didnt get the full amount that you are eligible for, file a 2020 federal tax return and claim them as part of your tax refund or use GetCTC.org if you dont have a filing requirement. The deadline to use GetCTC.org is November 15, 2021.
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