Stimulus Checks Helped Consumer Spending In January
After falling for two straight months in November and December, it looks likely that consumer spending in January will rise. The US Census Bureau will release data on Wednesday expected to show Retail sales increased 1.2% last month. This rise was aided in part by federal stimulus checks. Economists expect the trend to continue, as the number of new Covid cases decline and more businesses resume normal operations.
Iraqi Veteren Denied Stimulus Check
When the computer says ‘no’ things can go wrong, as Franklin Jackson from Wichita, Kansas, can attest to. Jackson says that the federal government owes him not one, but two income tax refunds, according to a report on Tuesday.
But he isnt getting this money because the Internal Revenue Service allegedly told him its records list him as deceased. The 52-year-old veteran served in Desert Storm and the Iraq War – and now works at Kaman Composites.
Despite being able to back up who he is and his status with several documents and identification cards – the IRS still have him down as being deceased.
We’re confident that this will be resolved.
Fourth Stimulus Check: Are More Payments Coming
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 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.
At the end of July, Rep. Ilhan Omar , introduced a bill that would send $1,200 to each American making less than $75,000 per year, forever. But it has not moved forward in the House of Representatives and has little chance of passing.
In May, seven Democrats on the House Ways and Means Committee sent a letter to President Biden requesting that the administration add a fourth and even a fifth stimulus check to the American Families Plan announced earlier this spring.
Recommended Reading: Irs Stimulus Check Tax Return
Stimulus Checks: Whats Happening In 2022
Many Americans are still holding out hope that there will be a new stimulus package. The hope is it will have stimulus checks for the year 2022.
While no new checks have been announced, Americans can collect the second part of their expanded child tax credit.
President Joe Biden is still hopeful that theyll extend the child tax credit program for at least another year.
$1400 Stimulus Checks And Tax Credits To Reduce Taxpayers Bill
President Joe Biden is traveling the country this week to drum up public support for his $1.9 trillion relief plan, which closely aligns with legislation moving forward in Congress. He will begin his national tour in Milwaukee, Wisconsin where he is participating in a CNN townhall on Tuesday to discuss his plan with voters at 9 pm ET.
According the Urban-Brookings Tax Policy Center the covid-19 relief bill House Democrats have proposed so far would reduce household federal tax bills by an average of $3,100 this year,as per CNN.
The tax savings for individuals would come from four major provisions in the legislation advanced last week:
– The $1,400 stimulus payments.
– An expanded child tax credit.
– An expanded income tax credit.
– And a boost to the tax credit for those paying for child care.
Recommended Reading: Are We Getting More Stimulus Money
Whether Youre Getting An Inflation Stimulus Check Or Not You Need A Budget
Heres a crazy ideainstead of hoping for Uncle Sam to swoop in and save the day with an inflation stimulus check, give yourself a raise to tackle inflation. Okay, it might not be as easy as snapping your fingers, but its as easy as making a budget.
Most people feel like they got a raise after making their very first budget! Thats because doing a monthly budget actually puts you in control of your money. And when you tell your money where to go instead of wondering where it went, you feel like you just got a raise. And with this record-breaking inflation were having, that will really come in handy.
The easiest way to make a budget? Our free budgeting app, EveryDollar. Its an awesome stress-free way to make your first budget. And if you live in a state thats cutting an inflation stimulus check, EveryDollar will have your back when it comes to putting that money to work for you too. And lets be realthats a lot more than the government can say.
About the author
Ramsey Solutions
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.
When Will Your Stimulus Check Arrive
The stimulus payments are being distributed to taxpayers either by direct deposit or by paper checks or debit cards arriving by mail. If youve been paying your taxes via direct deposit, the IRS should already have your banking information on file and will make the payment directly to your bank account.
For direct deposit, the IRS uses data already in its system to determine which bank account to send the payment to. That most likely happens by attaching a routing and account number to your 2020 or 2019 tax filing, as well as inputting one earlier in 2020 for receiving your first stimulus check. Those receiving payments by mail will have to wait a little longer.
This round, the Treasury Department is also working with the Bureau of the Fiscal Service to identify federal records of recent payments to and from the government to find a possible bank account alternative for delivering stimulus payments as a direct deposit. The move helped accelerate the stimulus check delivery timeline, the IRS said in a statement.
In most cases, individuals arent required to take action to receive their checks and are discouraged from contacting the IRS, according to a Treasury Department release.
The IRS and Treasury Department anticipate sending out more tranches on a weekly basis moving forward.
You May Like: Veterans To Receive Stimulus Payment
Idaho: $75 Rebate Payments
In February, Idaho Gov. Brad Little signed a bill that allocates $350 million for tax rebates to Idahoans. There are two criteria for eligibility:
- Full-time Idaho residency and filed 2020 and 2021 tax year returns, OR
- Full-time Idaho residency and filed grocery-credit refund returns.
The payments began in March. Each taxpayer will receive either $75 or 12% of your 2020 Idaho state taxes, whichever is greater . The rebate is applicable to each individual taxpayer and each dependent.
The tax commission will first issue rebates to taxpayers who received refunds via direct deposit, then send paper rebate checks.
State residents can also check the status of their rebate online.
Relief Check Coming In Maine
On Friday, April 22, the Mills administration set up a website, Maine.gov/reliefchecks. There, people can go to get answers about the payments. Among the key details to know:
-
Eligibility depends on filing a 2021 Maine individual income tax return by October 31, 2022, as a full-time Maine resident.
-
Those eligible must have a federal adjusted gross income of less than: $100,000 if filing single or if married and filing separately $150,000 if filing as head of household or $200,000 for couples filing jointly.
Importantly, unlike many other stimulus programs including those at the federal level? Maines effort here, which Mills proposed and which got near-unanimous approval from the state legislature, is coming out of a state surplus.
Specifically, these relief check payments are expected to return half of Maines budget surplus to, as the governors office has said, an estimated 858,000 Maine people grappling with the increased costs as a result of pandemic-driven inflation.
You May Like: How Much 2021 Stimulus Check
What Do The Democrats Want
The Democrats passed the $3 trillion HEROES Act in May, which would have provided $1,200 to most Americans. Similar to the CARES Act it would have provided checks to Americans earning up to $75,000 per year and $2,400 for couples earning up to $150,000 annually.
The bill bumped the $500 per dependent in the CARES Act up to $1,200. And it wouldve also sent stimulus money for adult dependents.
House Democrats still support their stimulus check proposal in the HEROES Act.
Increase The Child Tax Credit Earned
- For those without children, the American Rescue Plan increased the Earned-Income Tax Credit from $543 to $1,502.
- For those with children, the American Rescue Plan increased the Child Tax Credit from $2,000 per child to $3,000 per child for children over the age of six and $3,600 for children under the age of six and raised the age limit from 16 to 17.
- The American Rescue Plan also increased and expanded the Child and Dependent Care Tax Credit, making more people eligible and increasing the total credit to $4,000 for one qualifying individual and $8,000 for two or more.
Don’t Miss: Where’s My 1st And 2nd Stimulus Check
A 4th Stimulus Check Is Happeningif You Live In These States
10 Min Read | Jul 14, 2022
It seems like every time a stimulus check goes out, theres a five-second pause before someone starts asking, So . . . will there be another stimulus? . If youre one of those people who has been wondering if a fourth stimulus will happen, weve got your answer: Yes . . . kind of. Its true, a fourth stimulus check is happeningbut only if you live in certain states in America.
Right now, you might be thinking, Wait. What? Really?
Yep, its for real. Lets dig into this topic layer by layer and coast to coast.
How We Make Money
You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout lifes financial journey.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.
Were transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.
Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service.
Recommended Reading: Amount Of All Stimulus Checks
Where Is My Second Stimulus Check
All second stimulus checks were issued by January 15, 2021. If you didnt get a second stimulus check by then , you can claim your second stimulus check as the Recovery Rebate Tax Credit on your 2020 tax return or use GetCTC.org if you dont have a filing requirement.
You can request a trace of your stimulus check. You should only request a payment trace if you received IRS Notice 1444-B showing that your second stimulus check was issued or if your IRS account shows your payment amount and you havent received your second stimulus check.
Learn more about requesting a payment trace here.
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.
Also Check: How Much Was All The Stimulus Checks
Why Is The Irs Not Going To Release A 4th Stimulus Check In 2022
There have been three federal stimulus checks, but a fourth isn’t coming
- SAM
- Stimulus Checks.New Stimulus Bill 2022: When are new payments coming?
The US federal government responded to the coronavirus pandemic by sending out stimulus checks to help low-income and medium-income Americans, with one stimulus check of $1,200 in April 2020, another stimulus check of $600 in December 2020 and then a third stimulus check of $1,400 in March 2021. However, a fourth stimulus check it not likely to be on the way.
So, why won’t there be a fourth stimulus check? Well, there are a variety of reasons and we outline the government’s arguments against a fourth stimulus payment being sent out through the Internal Revenue Service .
Why You Can Trust Bankrate
Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. Weve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.
Bankrate follows a strict editorial policy, so you can trust that were putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts, who ensure everything we publish is objective, accurate and trustworthy.
Our banking reporters and editors focus on the points consumers care about most the best banks, latest rates, different types of accounts, money-saving tips and more so you can feel confident as youre managing your money.
Also Check: H& r Block Stimulus Tracker
The Stimulus Became Political
Part of the problem is that the last rounds of stimulus the checks that went out in December 2020 and March 2021 may actually have been too big. But the decision to send an extra $2,000 to most Americans wasnt backed by evidence or economic calculations. It was shaped by politics.
Though the CARES Act passed on a near-unanimous, bipartisan basis in March 2020, when former President Donald Trump was in office, a much different story played out in the transition from his administration to now-President Bidens. Toward the end of 2020, Trump pushed for additional $2,000 payments, which House Democrats supported and later passed, but that effort was blocked by Republicans in the Senate who were alarmed by the price tag. Ultimately, direct payments of just $600 were greenlit despite broad-based support for the bigger checks among voters of both parties.
But Democrats, with control of the Senate hanging in the balance, decided to campaign for larger stimulus checks in the run-up to the Georgia run-off elections. Its impossible to know whether support for the checks gave now- Sens. Raphael Warnock and Jon Ossoff their respective edges, but Democrats did end up winning both seats and passing the American Rescue Plan two months later, which included $1,400 checks to meet the desired $2,000 target.
Instead of helping Biden and his party, then, the stimulus could end up hurting them in the 2022 midterm elections.
What About Student Loan Forgiveness
Lawmakers proposed a separate plan to forgive $50,000 of federal student loan debt per person. This would cancel out the debt of roughly 80% of federal student loan debtors.
We will continue to update this article as we receive information. We encourage you to consult government websites for the most up-to-date information.
Recommended Reading: Can Unemployed Get Stimulus Check
Poll Of New Yorkers Shows Support For Third Stimulus Check Strongest In Under 35 Y/o
In a Siena Poll of New Yorkers, 90% of 18-35 year olds were in favour of the new $1400 stimulus checks. Generally across all age groups support was high.
The poll also showed New Yorkers overwhelmingly support Bidens $1.9T covid relief plan and that 16% of voters have been vaccinated 59% plan to get vaccine 22% do not.
$1400 Stimulus Checks Just Instant Gratification
As Congress moves forward with the $1.9 trillion covid-19 relief bill the debate continues about how effective the money spent will be. The chief economist of the IMF said the American Rescue Plan could boost U.S. economic output by another 1.25% in 2021 and 5% over the next three years.
However scholars at Wharton School of Business have an opposing view. Their analysis of the plan found that the massive package would only cause a slight uptick in economic growth in 2021. But afterwards rising government debt caused by the legislation would undermine any gains in the medium-to-long term.
Recommended Reading: Recovery Rebate Credit Second Stimulus
