Fourth Stimulus Check: Are More Payments Coming
Here’s what we know about a possible fourth stimulus check
A fourth stimulus check from the government could take one of two forms: monthly checks in fairly small amounts, or one-time payments of up to $2,000.
Both options have been put forward by legislators in Congress as follow-ups to the third round of pandemic relief payments, which were made possible by the American Rescue Plan Act of March 2021.
The U.S. economy is still recovering, with slow but steady job growth even as unemployment numbers hold steady and the Delta variant of COVID-19 causes hospitalization rates to soar.
The federal moratorium on evictions ended Aug. 26 with a Supreme Court ruling , and millions now face losing their homes. Inflation , however, appears to be on the rise, contributing to fears among economists and lawmakers that further stimulus payments could only fuel more price hikes.
As a result, there’s no legislation in Congress that’s likely to pass that would create a fourth round of stimulus payments, even though some Democratic lawmakers have called on President Joe Biden to consider recurring payments.
The White House has passed back the buck, stating that the president would consider whatever Congress comes up with.
“We’ll see what members of Congress propose,” Psaki added, “but those are not free.”
South Carolina: Rebate Checks Of Up To $800
A budget plan approved in June earmarked $1 billion for a tax rebate that will provide a one-time payment of up to $700 for some taxpayers.
Rebate amounts will be determined after Oct. 17 . Then rebates will be distributed prior to Dec. 31. If you received your 2021 refund by direct deposit, youll also receive your rebate to that account. You can estimate your rebate by following the instructions on the state Department of Revenue rebate news website.
Fourth Stimulus Checks Coming In 2021 More Direct Payments May Still Be A Longshot
The odds of the federal government passing a fourth round of stimulus checks have gone from slim to almost none.
There had been hope that Democrats’ reconciliation bill could include another round of direct payments to Americans. But due to opposition from Democrat Sens. Kyrsten Sinema of Arizona and Joe Manchin of West Virginia, the bill’s price tag has significantly dwindled for infrastructure needs.
Meanwhile, Republicans opposed past efforts by the Biden administration to provide direct payments to Americans. Sen. Mitch McConnell, R-Ky., told a Kentucky local news in the spring that he “can’t imagine the economy is going to need a fourth round.”
The remaining optimism for direct payment comes from the possibility of economists pushing for more consumer spending amid weak employment figures. The Bureau of Labor Statistics reported this month that six million unemployed people are not actively looking for jobs.
On Oct. 10, American investment bank Goldman Sachs cut its U.S. economic growth target to 5.6% for 2021 and to 4% for 2022.
Another reason for optimism is a petition from Change.org to influence lawmakers to provide direct payments during the pandemic. As of Sunday at 6:27 p.m. ET, there are 2,937,623 signatures demanding $2,000 monthly stimulus checks.
There have also been other petitions listed on Change.org that called for slimmed-down versions of Bonin’s petition.
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Inflation Is One Reason Why There Won’t There Be A Fourth Stimulus Check
Rising inflation is a major concern in the USA right now, with the rate hitting 7.5% for January of 2022. When the last of the stimulus checks came out, in March of 2021, inflation was just 2.6%.
Some believe that the stimulus checks helped start the spike in inflation and, whether that’s true or not, another stimulus check wouldn’t help that situation.
Rhode Island: $250 Rebate Per Child
Rhode Island will send a one-time payment of $250 per child, thanks to a state budget surplus.
Households can receive a payment for up to three dependent children. Those children must have been listed as your dependents on your 2021 federal and state income tax returns.
Taxpayers must earn $100,000 or less to be eligible for the payment.
Child Tax Rebate checks will be issued automatically starting in October 2022. Taxpayers filing their 2021 state tax returns on extension by October 2022 will receive their rebates starting in December.
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What If I Owe Child Support Payments Back Taxes Money To Creditors Or Debt Collectors Or Federal Or State Debt
None of the three stimulus checks can be reduced to pay any federal or state debts and back taxes. Unlike the first stimulus check, your second and third stimulus check cannot be reduced if you owe past-due child support payments.
| Federal or State Debt | |
| Protected | Not protected |
If you are claiming the payments as part of your 2020 tax refund , the payments are no longer protected from past-due child support payments, creditor and debt collectors, and other federal or state debt that you owe . In other words, if you receive your first or second stimulus checks as part of your tax refund instead of direct checks, it may be reduced.
Th Stimulus Check Update 2022 14 States To Send Direct Payments To Residents See If Yours Is On The List
- 10:24 ET, Jul 12 2022
FOURTEEN states are sending direct payments to millions of residents over the course of this summer.
As millions of Americans feel the effects of inflation, 14 states will issue payments to their residents in the form of tax rebates.
For instance, Maine has also been sending out rebate checks worth $850 per individual and $1,700 for the average family. The state mailed nearly 200,000 rebate checks per week throughout June.
Finally, Governor Gavin Newson of California announced 23million Californians will benefit from direct payments of up to $1,050, with payments going out soon.
Read our stimulus live blog for the latest news and updates
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Massachusetts: Up To 7% Of Income May Be Returned
Massachusetts taxpayers will receive rebate checksbut how much theyll receive wont be officially announced until September 20. Massachusetts Governor Charlie Baker will use a 1986 law to return $3 billion to state taxpayers.
The state auditors office declared the state surplus to be some $2.3 billion. And under Chapter 62Fthe 1986-era law, tax rebates are allowed when theres a revenue surplus.
Residents are expected to receive about 7% of the amount of income tax they paid to Massachusetts in 2021. For someone with a $75,000 income, that would mean a rebate of about $250, state officials told WBUR.
With Unemployment Numbers Improving Don’t Expect A Fourth Stimulus Check
The stimulus checks were sent out at a time when the economy was stagnant, as a result of coronavirus restrictions. There was a need for a boost, but now the economy is recovering naturally.
The pre-coronavirus pandemic unemployment rate was 3.7% and it got all the way down to 3.8% in February 2022, so it’s basically back to what it was.
This is good news in general as more and more Americans are earning an income again, which reduces the need for another stimulus check in the view of politicians.
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Other Help For Social Security Claimants
The Social Security Administration looks at the cost of living and makes any necessary increases to Social Security benefits.
This practice has been going on since the 1950s to offset inflation for people living on a fixed income.
The cost-of-living adjustment for 2022 increased to 5.9 percent, one of the biggest on record.
The Social Security Administration is estimating that the number could rise by another eight percent next year, but no official decision will come until later in the year.
It does mean about 70million Americans will almost certainly receive a significant monthly increase in their benefits in 2023.
However, based on the most recent Consumer Price Index report from the US Bureau of Labor Statistics, which showed inflation in June surging 9.1% from the previous year, the Senior Citizens League said the COLA for 2023 could be about 10.5%.
Keep in mind, despite the increases each year, high inflation has lowered Social Security claimant’s buying power by about 40 percent since 2000.
Stimulus Update : 7 States Are Sending Out Payments In August
FILE This May 8, 2008, file photo shows blank checks on an idle press at the Philadelphia Regional Financial Center, which disburses payments on behalf of federal agencies in Philadelphia. AP
Seven states are in the process of sending out direct stimulus payments to residents as Americans continue to struggle with inflation and the rising costs of food, gas and housing.
The federal government sent out three stimulus checks during the COVID pandemic. Now, with Congress seemingly closed to the prospect of additional checks, individual states are providing direct funding to address economic woes.
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Seven states are preparing to send stimulus payments to their residents as soon as this month:
Delaware
Delaware began sending relief rebate payments of $300 to taxpayers who filed a return in 2020 with the money coming from a budget surplus.
Most Delaware residents received the payments in May though state government said they will continue to be distributed throughout the summer.
Florida
Florida Gov. Ron DeSantis announced in July that 59,000 low-income families in the state will qualify for a one-time payment of $450 per child. The stimulus is being distributed via the Florida Department of Children and Families to residents who receive one of the following services through the department:
- Temporary cash assistance
- Has an adoptive and/or foster child in the household
Georgia
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Stimulus Checks Could Be Coming To These 4 States Soon
The last federal stimulus check went out in 2021, but individual states are starting to come through with financial help for residents as record inflation continues to affect many Americans bottom lines and budgets.
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As GOBankingRates reported earlier this week, 13 states are currently offering stimulus money to constituents. Among them are California, where a Middle-Class Tax Refund provides up to $1,050 per single tax filer, and Massachusetts, where a new law called Chapter 62F declares the state has to refund budget surpluses back to residents. Residents will get back around 14% of the state income taxes they paid in 2021.
Other states currently offering stimulus payments include Colorado, Delaware, Hawaii, Illinois, Indiana, Minnesota, New Jersey, Pennsylvania, Rhode Island, South Carolina and Virginia. Many others provided financial support earlier this year.
A few more states may soon announce stimulus packages, income tax rebates and gas rebates, reported Forbes, noting that lawmakers are still debating proposed legislation. Heres where the next round of payments may be happening.
Injured Spouse Claim And Spousal Claims
The IRS also stated that If you are married filing jointly and you filed an injured spouse claim with your 2019 tax return , half of the total payment will be sent to each spouse and your spouses stimulus check payment will be offset only for past-due child support. There is no need to file another injured spouse claim for the payment. I have received dozens of comments on this this, so hopefully this answers the questions many have had based on official IRS guidance.
Note that if you were current with your child support payments at the time of the stimulus eligibility determination but fell behind afterwards due to a COVID-19 related job loss, you would still be eligible to get the full stimulus payment.
Updating Direct Deposit Information
This question has come up a lot in the hundreds of comments to this article. The IRS has setup a portal for individuals to provide their updated banking information to receive payments via direct deposit as opposed to checks in the mail. The IRS does recommend that 2018 Filers who need to change their account information or mailing address, file 2019 taxes electronically as soon as possible. That is the only way to let us know your new information. You can file for free via TurboTax.
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How To Request A Track For Your Irs Tax Refund
The tax agency is months behind on the distribution of tax refunds for the 2020 financial year, with millions of people thought to be waiting for payments. The ongoing effort to send out stimulus checks and introduce the new Child Tax Credit programme has added substantially to the IRS workload and some of their more typical responsibilities are being delayed.
If you are still waiting for a tax refund, you can track the status of your payment online by going to the IRSWheres My Refund? online portal.
Is There Going To Be A 4th Stimulus Check For Adults
Several state governments have sent stimulus checks and bonus payments for individuals. Plus, more child tax credit payments are going out to families next week. A fourth stimulus payment isn’t on the agenda in 2021. … Yet Congress has no plans to approve a fourth federal stimulus check at this time.
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Indiana: $325 Rebate Payments
Like Georgia, Indiana found itself with a healthy budget surplus at the end of 2021, and it has authorized two rebates to its residents.
In Dec. 2021, Gov. Eric Holcomb announced that Indiana taxpayers would get a $125 one-time tax refund after they filed their 2021 taxes.
Theres no income requirement. Residents must have filed a state tax return for the year 2020 by Jan. 3, 2022, as well as a 2021 Indiana tax return by April 18, 2022, to be eligible. Payments started in May, according to a state information page.
Taxpayers who filed jointly will receive a single deposit of $250.
A second rebate was approved in August 2022 to grant another $200 per taxpayer.
Most taxpayers will receive their refunds by direct deposit, and the second payments started rolling out in late August. If you changed banks or dont have direct deposit information on file, youll receive a paper check. A printing delay put mailing the first round on hold for several months, but mailing resumed in mid-August. Checks mailed after that point contain payments for both rebates, for a total of $325 per taxpayer.
Distribution of printed checks is expected to take place through early October. If you did not file your 2021 tax return by the April deadline, you can claim your $125 rebate on your 2022 taxes.
For more information, visit the state Department of Revenue website.
How Will Alaskans Receive The Payment
Depending on how they applied, Alaskans will receive their PFD and energy relief payment either by check or direct deposit.
The distribution date if you filed an application electronically and requested direct deposit is September 20. Meanwhile, if you filed a paper application or requested a paper check, paper checks will be mailed the week of October 3.
Only applications approved by September 9 will receive payments on the schedule above, and residents can log into their myPFD account to check their eligibility status.
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New ‘stimulus Check’ Starts In July: $3600 ‘checks’ Coming Soon
The first payments of funds from the expanded child tax credit will arrive in July, IRS Commissioner Charles Rettig said in Congressional testimony in mid-April.
The $1,400 one-time stimulus checks that were mandated as part of the American Rescue Plan have been going out over the course of the last few weeks, with the latest round delivering about 2 million checks.
There is a movement to push through another payment, possibly through a separate package that would have to pass through Congress. But in the meantime, more checks are on the way for some Americans, also as part of the American Rescue Plan.
The first payments of funds from the expanded child tax credit will arrive in July, IRS Commissioner Charles Rettig said in Congressional testimony in mid-April.
We will launch by July 1 with the absolute best product we are able to put together, Rettig told the Senate Finance Committee. There had been some speculation, including some based on things Rettig had said, that the IRS, which does not have much experience with sending out recurring payments, would not have the infrastructure in place to get the payments out in time.
The IRS will set up a new online portal that will allow taxpayers to, among other things, update when they have had a new child.
American families will be eligible to receive up to $3,600 per year for each child under the age of six and up to $3,000 annually for each child between six and 17.
Federal Fuel Rebate Gas Tax Holiday Dont Hold Your Breath
Democratic lawmakers proposed giving qualifying taxpayers and their dependents $100 per month as part of the Gas Rebate Act of 2022 back in March. The bill remains stalled in the earliest committee stages.
In June, President Biden called for a three-month gas tax holiday, which would remove the 18-cent surcharge that the federal government places on a gallon of gasoline.
Newsweek takes the presidents stance as an indication that some financial relief could soon come for Americans grappling with soaring prices at the pump.
But, according to CNN, its implausible that a gas-tax holiday would ever make it through Congress and the states are balking at Bidens request for them to pause their own gas taxes, too.
According to Politico, state leaders in the presidents own party see little upside to sacrificing a significant source of revenue for nominal savings at the pump.
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