Unemployment Expected To Fall To 3 Percent
The US economy has been going gangbusters, recovering much faster than after the Great Recession. With covid-19 vaccine shots in their arms, Americans began venturing out once again driving up demand and hiring. This led to the most jobs gained on record in one year with the US adding 6.4 million in 2021.
The current unemployment rate of 4 percent though is still above the pre-pandemic level when it was 3.7 percent. And for all the jobs that were added there still remains a nearly similar number of Americans unemployed. However, the St Louis Fed President Jim Bullard predicts that it could , a level that could mean the economy is overheating.
St. Louis Fed President James Bullard sees the U.S. unemployment rate falling below 3% this year, a jobless rate the country last saw in the early 1950s, he told in a conversation on Twitter Spaces 1/3
Pros Of Taking The Monthly Child Tax Credit Payments
- You can use the money now. If youre having a hard time making ends meet, this is a great way to have extra cash flow to keep a roof over your head and feed your family.
- You can keep more money in your own pocket during the year. And Im a really big fan of thatbut only if it doesnt create a tax mess for you when it comes time to file your 2021 taxes.
- You dont have to jump through any extra hoops. If youve filed your taxes in 2019 or 2020 and want to get the advance child tax payments, you dont have to do anything else or sign up for anything. Youre automatically enrolled and are all set.
- You wont have that lump sum. We know some people like to use their tax refund as a glorified savings account. They get a big refund and cant wait to spend it on something theyve wanted all year. But if youve been around here for a while, youve heard me tell you to set up your tax withholding so that youre getting the most money you can in your paycheck. Which means youll be getting less money in your tax return each year . But keeping more money in your actual paycheck means you can put your hard-earned dollars toward your goals now. Its silly to let the government hang on to your money until tax time. Its your money!
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.
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Stimulus Update: $2000 Monthly Checks Petition Now Has 28 Million Signatures
Will there be a 4th stimulus check in 2021? More than 2.8 million people have signed a Change.org petition calling for recurring $2,000 monthly stimulus payments.
More than 2.8 million people have signed a Change.org petition calling for the federal government to provide $2,000 in monthly stimulus payments.
One petition is named $2000/month to every American #moneyforthepeople #covid19 and is directed at Congress. If the petition gets 3 million signatures, its target goal, it would be become one of the top signed on Change.org, according to the website.
We need immediate checks and recurring payments so that we can keep our heads above water, Stephanie Bonin, one of the larger petitions creators, told Newsweek.
However, despite the petitions increased growth, it is unlikely that the White House or Congress will issue a fourth stimulus check at this point and time due to the economys consistent improvement.
The Biden administration has not passed any direct legislation regarding a fourth stimulus check, and the majority of Congress has seemed to steer clear of a fourth stimulus package as well for now, preferring to focus on more targeted efforts as the economy improves.
Related stories to the stimulus:
A Fourth Stimulus Check Is Unlikely
All of the tacit and explicit support for stimulus checks keeps the possibility alive. The support doesnt make a fourth payment likely, however. And there are many reasons why.
Vaccinations are progressing steadily, albeit not as quickly as in the spring. Adults and those at least 12 years old are eligible to be inoculated in all 50 states. Three different options are available to the public. But actually putting needles in arms is taking time, even with supply readily available. Americans have received over 362 million doses, with 60.7 percent of the population having received at least one dose and 51.5 percent completely vaccinated. Vaccination numbers continue to increase at a rate of nearly one million per day. The Centers for Disease Control and Prevention has revised its guidance and recommends that vaccinated people in areas with higher COVID transmission revert to wearing masks indoors again.
Aside from the generally improving economy, the political machinations of Washington make a fourth stimulus check a longshot. The American Rescue Plan, which included the third stimulus check, passed along party lines. Republicans were not interested in spending anywhere close to $1.9 trillion, though some did support the third relief payment. They termed the package a blue state bailout, claiming it went well beyond the scope of COVID and would increase the deficit, leading to inflation.
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.
Here Are Some Questions And Answers Around This New Stimulus Payment:
If I didnt file taxes in 2019/2020 will I receive the stimulus ? Unlike the first stimulus payment where those who didnt need to file a tax return could update the IRS non-filer tool, this time around due to the speed of roll-out of the second stimulus check and with tax season around the corner the IRS has said the non-filer tool is closed for updates. The IRS will be using information they have as of Nov 21, 2020 or from your first stimulus check payment . Otherwise they are encouraging you to the stimulus by filing a 2020 1040 or 1040-SR tax return. Free tax software programs can be used by people who are not normally required to file tax returns but are eligible to claim the credit.
How will I get paid? Like the first stimulus payment in 2020, the IRS will facilitate payment of these checks based on your 2019 tax information. You will also get the dependent stimulus payment for eligible dependents claimed on your tax return. For other groups who dont file taxes the IRS will work with other government departments or the Get My Payment tool. Direct deposit will still be the fastest way to get your payment.
Dependents in 2020? Households who added dependents in 2020 might not qualify for full payments immediately, since based on 2019 tax return information. But they can request additional money as part of the 2020 tax returns they will file in early 2021. See more in this articles for dependent qualification income thresholds.
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Stimulus Check Updates To Know For July 2022
Despite all the talk about a fourth round of federal stimulus payments, summer is here and the check is still not in the mail. Lawmakers have proposed several plans to help America cope with inflation high gas prices, specifically but none have come to fruition so far.
Any federal action faces a tough road through a divided Congress. That doesnt mean help isnt on the way, but it all depends on where you live.
Some states arent waiting for a consensus from Washington, D.C., and are instead taking the initiative to make payments to their residents when they need it most: Right now.
Support For A Fourth Stimulus Check
A group of Democratic Senators, including Ron Wyden of Oregon, Elizabeth Warren of Massachusetts and Bernie Sanders of Vermont, sent a letter to President Joe Biden at the end of March requesting recurring direct payments and automatic unemployment insurance extensions tied to economic conditions.
As the Senators reasoned in their 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. Families should not be at the mercy of constantly-shifting legislative timelines and ad hoc solutions.
An earlier letter to President Biden and Vice President Kamala Harris from 53 Representatives, led by Ilhan Omar of Minnesota, carved out a similar position. Recurring direct payments until the economy recovers will help ensure that people can meet their basic needs, provide racially equitable solutions, and shorten the length of the recession.
Additional co-signers included New Yorks Alexandria Ocasio-Cortez and Michigans Rashida Tlaib, two other notable names among House Progressives. The letter didnt place a number on the requested stimulus payments. But a tweet soon after put it at $2,000 per month for the length of the pandemic.
$2,000 monthly payments until the pandemic is over.
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The Omicron Variant Didnt Slow Down Job Gains
Unlike last year though, when the Omicron variant pushed new infections to levels much higher than at any time during the pandemic, the US recorded significant job gains. Data collected in the middle of the surge reported 467,000 new hires, over three times what analysts had expected. Additionally, there are more job openings than there are workers available to take them pushing up wages as businesses try to attract employees.
On the other hand, 6 million people, nearly twice as many as in December, could not work or lost hours over the previous month due to the pandemic disrupting normal business at their place of employment. The incredibly fast rise in infections from the highly contagious Omicron variant fortunately appears to have reversed just as quickly.
How Will You Receive The Third Stimulus Check
Most people got their previous stimulus checks by direct deposit with the bank account on file with the IRS. Payments were automatic for anyone who filed a 2019 tax return and/or was receiving Social Security benefits. If you didnt have direct deposit with the IRS, your payment would take a little more time and come as a check or debit card in the mail.13
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Fourth Stimulus Check Update: 10 States To Give Payments Tax Relief & Gas Checks
- Californians will receive gas rebates amounting to $400 in the form of debit cards
- Georgians who filed their taxes may receive between $250 to $500 in rebate
- New Mexico will send out multiple stimulus checks to taxpayers amounting between $250 and $1,000
Nearly a dozen states will be sending out stimulus payments to residents amid high inflation and rising prices.
The federal stimulus checks sent out by the U.S. government have dried up. Provisions such as the expanded Child Tax Credit, which amounted to up to $300, have also ended even as American families continue to grapple with inflation.
In response, several states across the U.S. have created legislation that would send out stimulus payments to residents.
Colorado: $500 Rebate Payments
Colorado intends to send payments of at least $500 to taxpayers this year, after Gov. Jared Polis signed a bill in late May.
The exact amount depends on state revenue totals, but lawmakers expect every full-time resident who files a 2021 tax return before June 30 will receive a payment in September.
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How To Return A Paper Check You Have Cashed Or Deposited
If you have already cashed or deposited the check , heres how you can return the money:
- Make a personal check or money order payable to U.S. Treasury.
- Write 2020EIP on the payment and include either the taxpayer identification number or Social Security number of the person whose name was on the stimulus payment.
- On a sticky note or sheet of paper, write down the reason youre sending back the check or money order.
- Mail the check or money order and the explanation to your local IRS office .15
Stimulus Check Updates: Here Are The States Sending Inflation
Several states have announced new initiatives to deliver payments to certain groups. States providing relief include California, Florida, and Virginia, among others.
State officials are planning on giving stimulus checks of up to $1,050 to an estimated 23 million people. The payment amount will depend on whether the person is a single or joint filer for taxes, what the person’s income is, and how many dependents he or she has. Single filers will receive at least $200 if they earn up to $250,000 a year, and joint filers will receive $400 if they earn up to $500,000 a year.
In May, Gov. Jared Polis signed into law a tax rebate of $750 for single filers and $1,500 for joint filers. Residents who have already filed their tax returns can expect the payment by Sept. 30.
The state has been rolling out $300 relief rebate checks to combat high prices at gas stations. The checks began their rollout in May and will continue throughout the summer.
As part of an initiative to help families with foster and adopted children, the state has sent out$450-per-child payments. The payments are being funded with the state’s budget surplus, according to a spokesperson for Gov. Ron DeSantis.
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Who Is Eligible For The New Child Tax Credit
All right, qualifying for the new Child Tax Credit is based on several things: your income and the number of dependent children you have, plus their ages. The IRS will base all of this on your 2020 taxes . If you need to make any changes to what they already have on filelike say, oh, you had a sweet new baby or a change of income in 2021you can update your information through the Child Tax Credit Update Portal.
Now, theres a limit to all of this. The Child Tax Credit will start to phase out for incomes over $150,000 for married taxpayers filing a joint return and qualifying widows or widowers, $112,500 for heads of household, and $75,000 for all other taxpayers.7
Lets take a look at the Child Tax Credit Amounts for each age group one more time:
- Ages 05: $3,600
- Ages 617: $3,000
- Ages 1824 : $500
Your dependents will have to meet some basic conditions too. Obviously, theres the whole age thing, but they also need to be dependents that you claim on your taxes. So if you share custody of your children, the increased Child Tax Credit will go to the spouse who is claiming the kids for the 2021 tax year. You cant both claim the same child. And if you do, you might have to repay all or some of it back to the government the next year. That would be a huge bummer, so make sure you have everything figured out between you guys.
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.
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