Who’s Likely To Receive Future Funds
It appears that future stimulus payments will be targeted at small business owners. Whether it’s a daycare that shuts down due to coronavirus cases or a gift store with too few customers, these are the folks most likely to receive another round of funds.
Whether another round of stimulus payments is made will depend on what happens with the virus. Will it continue to infect, or will herd immunity be reached? Will further stimulus payments depend on new spending, or is there enough left in unused cash authorized under earlier financial aid packages to eke out the funds required to keep small businesses afloat?
Enough is up in the air for us to honestly say we’re not sure where these new bipartisan talks will lead. We know that the first three rounds of stimulus checks were sent when there was a dramatic rise in the number of COVID-19 cases. The first was in April 2020, at the beginning of the pandemic. The second was in January 2021, when the second wave of cases hit U.S. shores hard. And the last check was in March 2021, as cases continued to rise, but vaccines were not yet widely available.
For now, the best we can do is leave the door cracked and keep an eye on Washington D.C. to see what happens.
Democrats Say Families Need More Stimulus Checks
Fifty Democratic U.S. representatives, including Minnesota’s Ilhan Omar and New York’s Alexandria Ocasio-Cortez, have signed a letter pressing the Biden administration to issue recurring stimulus checks to help Americans cover essential needs for the duration of the pandemic.
One more check is not enough during this public health and economic crisis, the letter says. It doesn’t include a suggested dollar amount for the regular payments, but Rep. Omar tweeted in January that shed like to see the government provide $2,000 per month to carry people through the crisis.
Ten Senate Democrats have signed a similar letter. “This crisis is far from over, and families deserve certainty that they can put food on the table and keep a roof over their heads,” the senators say.
Last year’s very first, $1,200 stimulus checks were primarily spent on groceries, rent and other basic needs, according to the U.S. Bureau of Labor Statistics.
The cash also was used for saving and investing, and for other expenses. Some consumers likely went shopping for affordable life insurance, because demand for those policies has surged amid the pandemic.
Th Stimulus Checks Given Out To Teachers
For other states, their fourth stimulus checks are taking on a new lookas teacher bonuses! Its no secret that teachers are the unsung heroes of our communities, and theyve been put through the wringer during the pandemic. To show them the appreciation that they more than deserve, some states are giving teachers a fourth stimulus.
In Florida, teachers will be getting a $1,000 bonusalthough some of the details of who qualifies are up in the air. If youre a teacher in the Sunshine State, check with your district to see if you can get in on this.15
Georgia is extending the $1,000 bonus to both full-time teachers and administrators. Part-time teachers will still score a bonus of $500, and theres even a plan in place to give a bonus to pre-K teachers.16
Earlier in 2021, Michigan used a grant to pay bonuses of $500 to its teachers and $250 to school support staff. No word yet on whether theyll give out another bonus, though.17
Our very own Tennessee is giving full-time teachers $1,000 and part-time teachers $500 to thank them for their hard work.18
Now, nothing has happened statewide yet, but some districts in the Lone Star State are giving out their own bonuses. Districts are gifting things like 24% raises, a $500 bonus, and even a $2,000 incentive for some teachers to return to the classroom.19
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Fourth Stimulus Check Possible Timeline
Right now, there is no fourth stimulus check timeline or fourth stimulus check release date. Until legislation is in motion, we can’t say how soon more relief money might arrive. We can’t say whether more relief money is coming, at all.
That said, the third stimulus check timeline happened rather quickly following Biden’s inauguration Jan. 20. It only took a few weeks for Congress to debate his American Rescue Plan. Once the president signed the bill on March 11, $1,400 checks were put in motion.
The IRS can begin sending out possible fourth stimulus checks in the same manner it sent the previous stimulus payments. Since the framework is already in place, Americans could begin receiving the fourth stimulus checks about two weeks after a relief bill allowing another round of direct payments is approved.
Th Stimulus Check Update And Payment Status In 2022
This article provides updates, income qualification thresholds and FAQs on the approved and proposed stimulus checks, also known as Economic Impact payments.
While multiple rounds of payments have been made over the last two years, many are asking if the government will make another of payments to help folks cope with high inflation and the rising costs of basic goods and services.
Each round of stimulus check payments had slightly different rules so please ensure you review each payment round separately. Click the links below to jump to the relevant stimulus payment.
If you have not received one or more of your stimulus payments, then you will need to claim this as a recovery rebate via your tax filing for the relevant year. This include retroactive stimulus check payments.
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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.
Are $2000 Monthly Stimulus Checks Possible
In response to President Biden’s American Jobs Plan proposal, a group of 21 senators on March 30 sent a letter urging the inclusion of stimulus checks in the legislation. The group called for recurring payments as long as the pandemic lockdown continued, meaning people would get monthly checks from the government. No amount for the payments was specified.
We urge you to include recurring direct payments and automatic unemployment insurance extensions tied to economic conditions in your Build Back Better long-term economic plan, wrote the group, which consisted of Sen. Elizabeth Warren, D-Massachusetts, Sen. Bernie Sanders, I-Vermont, and others.
An earlier stimulus check proposal, put forward during the early days of the American Rescue Plan in late January, also suggested monthly payments until the pandemic is over, but did not mention an amount. However, Rep. Ilhan Omar , D-Minnesota, tweeted earlier in January that she wanted to see $2,000 per month.
If that amount sounds familiar, it’s because now-Vice President Kamala Harris threw her support behind $2,000 recurring checks during the negotiations for the second stimulus check legislation in the summer of 2020.
The proposal has also gained plenty of support outside of Congress: Six online petitions calling for $2,000 monthly stimulus checks until the end of the pandemic have been posted. The biggest petition, on Change.org, has been signed by more than 2.8 million people and has a stated goal of reaching 3 million.
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How To Opt Out Of Monthly Child Tax Credit
If you dont want these advance payments, youll have to go through a few steps to opt out. But its pretty simple really. The IRS set up a Child Tax Credit Update Portal for you to opt out and make any changes.
Dont worryeven though the first payment has already gone out, its not too late to opt out of the advance Child Tax Credit payment. Actually, you have the chance to opt out each month. Really! You just have to do it at least three days before the first Thursday of the month.8 So if you want to opt out in September, make sure to opt out by August 30, just to be safe.
Pro tip: If youre married and filing jointly, then both you and your spouse need to opt out of the Child Tax Credit.
Fiction: President Joe Biden Has The Final Word On A Fourth Stimulus Check
Partisan behavior is nothing new in Washington D. C. It didn’t start with this Congress and is unlikely to end with them. Part of their calculation involves “what will make the other side look bad in the eyes of the American people?” Another stimulus check would make President Biden look good. Eighty-plus members of Congress have signed letters asking the president to support recurring payments until the pandemic is behind us. Seven House Ways and Means Committee members have asked for at least a fourth and fifth stimulus check to “keep an additional 12 million out of poverty.” Further, approximately 2.25 million Americans have signed an online petition calling for a new $2,000 stimulus check for adults and $1,000 for children.
Some Republicans worry about the national deficit and whether additional stimulus funds will stimulate the economy. Still, it’s impossible to deny that the two parties are so entrenched in a “them vs. us” mentality that most will not consider additional aid that might make Democrats look good going into the 2022 midterm elections.
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No Stimulus Check 2022 Yet
White House press secretary Jen Psaki said that the White House is working toward the passage of a bill that funds these checks, one way or another, this month. And that the Biden administration might send families a much bigger check in February. To make up for the check that wont come this month.
If we get it done in January, weve talked to Treasury officials and others about doing double payments in February as an option,Psaki said.
Of course, a double payment in February for everyone depends on the huge if in Psakis statement above. Namely, legislation must actually get passed pretty soon. Supporters, of course, have their fingers crossed. Abandoning this transformational expansion of the child tax credit would be a terrible mistake and set back efforts to lift the next generation out of poverty, the LAT editorial continues.
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Questions About A Fourth Stimulus Check
Per USA Today, there was some suspicion Biden would hint at a fourth stimulus check in his speech Wednesday night. Americans would be watching the speech to see if there was any hint another check could hit their bank accounts.
- Labor market and tax experts, however, dont anticipate that there will be additional stimulus checks in the next relief package as the economy continues to recover from last years coronavirus-induced recession and the job market improves, according to USA Today.
A report from the Economic Security Project said a fourth or fifth stimulus check could keep 12 million people out over poverty.
- Stimulus checks have played a critical role in fighting poverty, boosting small business revenue, and increasing state and local revenues, according to Business Insider.
- Evidence from the last year shows stimulus checks to be the fastest and most impactful investments helping Americans get through this crisis, lifting more people out of poverty than any other single policy, the report said.
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Checks Can Make An Impact ‘within Days’
Sahm points out that stimulus checks have unique advantages compared with other forms of aid.
For one, they get to people quickly.
Research on the stimulus checks shows that people spend about half of the checks, and they do so quickly.Claudia Sahmmacroeconomic policy consultant
“The bottom falls out in a recession, so it’s important to blunt the fall,” Sahm said. “Checks do that well. The second and third rounds went out within days.”
“No other relief program came anywhere close.”
The payments also stimulate the economy in a short amount of time, she said. “Research on the stimulus checks shows that people spend about half of the checks, and they do so quickly.”
Some Americans Could Get $1800 In 2022
Those who added a dependent may not be the only ones to get another payment from the government. Many other parents could also be entitled to more funds.
See, the American Rescue Plan Act also temporarily expanded the Child Tax Credit for the 2021 tax year. Prior to 2021, the credit was for a maximum of $2,000 per child and only $1,400 of it was refundable. The credit had to be claimed on your taxes and youd reduce your tax bill with it or could get up to $1,400 back even if you didnt have at least $2,000 in tax liability.
The American Rescue Plan Act raised the amount of the credit to $3,600 for children under age 6 and $3,000 for children aged 6 to 17. And its now fully refundable. The IRS was also ordered to deliver half of this expanded credit at a rate of $300 or $250 per child deposited into bank accounts from July through December of 2021.
This means half the expanded credit was delivered already for most people. But eligible parents can claim the rest of the credit they are entitled to when they file their 2021 taxes. You could be eligible for a credit worth up to $1,800 per child that reduces your tax bill or that comes in the form of a larger tax refund.
Parents who added a dependent to their family in 2021 may have also missed out on the full $3,600 or $3,000 expanded Child Tax Credit they became entitled to last year. They could receive this money along with their $1,400 stimulus check when filing their returns for the year.
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There Will Be Fewer Protections Against Garnishment
The COVID-Related Tax Relief Act prevented garnishment of second-round stimulus checks by creditors or debt collectors. They couldnt be lost in bankruptcy proceedings, either. The IRS also had to encode direct deposit second-round payments so that banks knew they couldnt be garnished. This is in contrast with the CARES Act, which didnt provide similar protections for first-round payments.
Under the American Rescue Plan, your payment will be protected from reduction or offset to pay federal taxes, state income taxes, debts owed to federal agencies, and unemployment compensation debts. However, as with first-round checks under the CARES Act, there will be no additional protections against garnishment by private creditors or debt collectors for third-round payments. Theres nothing in the American Rescue Plan to stop creditors from getting your third stimulus check in bankruptcy proceedings, either.
Payments Can Fill Other Benefit Systems Gaps
Although some people argued that the payments should have been better targeted at those hurting financially, it’s the red tape around all the other benefits that make the direct payments necessary, some say.
“Some states have actively undermined their unemployment insurance by making the eligibility narrower and underfunding the administrative systems,” Sahm said. “If the unemployment insurance and the worked properly, we would not need big stimulus checks.”
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Child Or Dependent Qualification For The $500 Payment
Several readers have asked questions around the $500 child dependent additional stimulus payment. To get this payment you must have filed a 2018 or 2019 tax return and claimed the child as dependent ANDthe child must be younger than 17-years-old at the end of 2020. They must also be related to you by blood, marriage, or adoption . There is no limit to the number of dependents who can qualify for the additional $500 in one household.
This age limit is much younger than what is used by the IRS in the qualifying child test where a child must be younger than 19 years old or be a student younger than 24 years old as of the end of the calendar year. Hence the confusion being caused by this. So just remember if your child or eligible dependent is 17 or over you cannot claim the stimulus payment for them.
College Kids and High School Seniors
The younger than 17 yr old requirement has ruled out several thousand college students and high school kids who are older than 17, but still being claimed as a dependent by their parents on their federal tax return.
However if you are a college student AND filed a recent tax return you can qualify for a standard/adult stimulus check per the above eligibility rules. But note as soon as you file a return you cannot be claimed as a dependent by others, which means they lose certain other tax benefits and credits.