New Debit Cards To Be Issued For Third Round Of Stimulus Checks
The new legislation includes provisions for those receiving payments by debit card. With this round of payments, new debit cards will be issued for the third/latest stimulus payments. The IRS cannot use the prior debit cards used for earlier stimulus payments.
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A Fourth Stimulus Check Is Unlikely
All of the tacit and explicit support for stimulus checks keeps the possibility alive. The support doesn’t 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, with the Pfizer vaccine fully approved by the FDA. Booster shots of the Pfizer vaccine have also been approved and rolled out for those at risk or over 65. Actually putting needles in arms is taking time, even with supply readily available. Americans have received over 422 million doses, with 66.7 percent of the population having received at least one dose and 58 percent completely vaccinated. Vaccination numbers continue to increase at a rate of about 1.4 million doses per day, with booster shots accounting for some of the recent increase.
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.
Fourth Stimulus Check Approval: Here’s What It’ll Take
The White House hasn’t responded to any of the proposals for additional stimulus checks, and the general sentiment is that a fourth stimulus check isn’t likely. Economists have suggested we’ve already moved past the pandemic’s worst financial woes, although there are signs that Americans could still use relief.
Experts certainly seem in agreement that there won’t be a fourth stimulus check. The latest stimulus package, the American Rescue Plan, is “gonna be the last on that front,” Deutsche Bank senior U.S. economist Brett Ryan told Fortune . “No more checks.”
Ed Mills, Washington policy analyst at Raymond James, agreed, telling CNBC recently “I think its unlikely at this time. D.C. has largely started to pivot towards the recovery and an infrastructure bill.”
Many economists and financial experts are worried that the third stimulus checks have contributed to a growing inflation rate. In June 2021, the core inflation rate, stripped of energy and food prices, rose 4.5% at an annual rate vs. the Dow Jones estimate of 3.8%. The overall consumer price index rose at an annualized 5.4% rate in June.
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When Will The New Stimulus Payments/checks Be Made
The IRS will be responsible for making these stimulus payment checks and Treasury Secretary Mnuchin, whose department oversees the IRS, said that payments go out within a week of the bill being formally approved. This means payments could hit bank accounts before the end of the year. Payments would be made in multiple batches and if all goes according to plan the first round of payments would begin on 12/28 . Processing will go until January 15th for Direct Deposit payments. Checks and Debit Cards will take until the end of January 2020 to get processed. See more on the IRS Stimulus Check Payment Schedule.
The inclusion of the one-time stimulus payment however has also meant a cut in extra unemployment benefits that are also part of the overall package. More to come as the bill gets finalized and I will post updates. See this $600 stimulus update video for a quick summary as well.
Th Stimulus Checks Given Out To Targeted Groups
Some states are digging into that wad of cash the government gave them and giving out the fourth stimulus checks to specific groups of people. The requirements look different for each state, but all seem to have a few things in commonlike falling into certain income levels or going through some kind of hardship.
The Grand Canyon State has a different take when it comes to stimulus checkstheyre giving them out to people who are going back to work. Arizonas Back to Work Program is offering $2,000 to those who got a job after being on unemployment.3 But you have to hold down your new job for at least eight weeks before getting the benefit.
The Golden State is the only one on the list to give out big ol broad-sweeping stimulus checks that look like the ones the federal government gave out. Heres how their numbers break down: Californians making $75,000 or less were sent a one-time check of $600 or $1,200 as part of the Golden State Stimulus I.4 And with the Golden State Stimulus II, they could be eligible for a second stimulus payment anywhere from $500 to $1,100.5 Thats on top of extra money the state paid out through the Young Child Tax Credit to those who have children age 6 or younger.6
These guys decided to shift their focus to giving their stimulus checks to the unemployed. They sent $375 to folks who had gotten at least one unemployment check payment between March 15, 2020, and October 24, 2020.7
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A Timeline Of Past Stimulus Checks
The pandemic stimulus payments started nearly two years ago.
Stimulus checks were first deposited in the spring of 2020 when the COVID-19 pandemic was just beginning, driving up the unemployment rate and causing financial hardship for many. Individuals with income below $75,000 received $1,200 and couples earning below $150,000 received $2,400.
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The Trump administration then in December 2020 $600 per individual taxpayer, $1,200 per married couple and an additional $600 for each child under the age of 17.
A third round came under the Biden administration in March 2021, giving $1,400 per individual and $2,800 per married couple, along with $1,400 per dependent this time regardless of age.
Minnesota: $750 Payments For Frontline Workers
Some frontline workers could receive a one-time payment of $750, thanks to a bill signed by Gov. Tim Walz in early May.
Eligible workers must have worked at least 120 hours in Minnesota between March 15, 2020 and June 30, 2021, and were not eligible for remote work. Workers with direct Covid-19 patient-care responsibilities must have had an annual income of less than $175,000 between Dec. 2019 and Jan. 2022 workers without direct patient-care responsibilities must have had an income of less than $85,000 annually for the same period. Applications for the payment are now closed.
Walz recently proposed using the states $7 billion budget surplus to fund a generous relief package, proposing that Minnesotans receive tax rebate checks of $1,000 per person. Doing so would require action from the state legislature.
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Heres What Else You Should Know
Stimulus payments can total up to $1,400 per person for those with adjusted gross incomes of $75,000 or less as single filers, or $160,000 or less for joint filers.
Families can also receive $1,400 per dependent, regardless of the dependentâs age.
The Child Tax Credit was also temporarilyextended by Congress to consider more families and increase how much they can receive.
Most families are eligible for $3,000 per child between the ages of six and 17 and $3,600 for each child under six. You can check the IRSâs site to determine if you qualify.
Tax returns can also be completed and submitted through CTCâs site, including the simplified filing tool which was updated on Wednesday.
GAO discovered that people within certain groups may have faced difficulty receiving their payments.
This includes those who:
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Are We Getting Another Stimulus Check In 2021
Whether we get another stimulus check in 2021 depends on how much momentum the proposals for more checks gain.
There are still some people who’ve not yet received the third stimulus check, but we’ve got a handy guide for what to do if you’re missing your stimulus check payment. It’s worth checking if you’re eligible for most recent stimulus check as it’s worth up to $1,400 per person.
The IRS has reported that taxpayers whose direct-deposit information is on file should have seen their payments reach their bank accounts in April. Those who are waiting on paper checks and debit cards can expect to receive their funds in the coming weeks.
If you have received the third stimulus check and feel it’s too low, then take a look at our guide to the stimulus check calculator as that can show you what your own eligibility looks like. Keep in mind that there are a few factors that will affect the amount you are due or have received.
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Parents Are More Likely Than Non
Although thereâs little appetite in Washington D.C. for a fourth stimulus check to be distributed to everyone, there is some bipartisan support for an expanded Child Tax Credit.
The last stimulus bill, the American Rescue Plan Act, made more money available to parents by changing the current rules for the existing Child Tax Credit. Parents were eligible to receive up to $3,600 for children under age 6 and up to $3,000 for kids aged 6 to 17.
While Republicans arenât in favor of doing exactly what the American Rescue Plan Act did for parents, those on the right have put forth various proposals to also expand this tax credit. And thereâs broad support on the left for more financial help to parents.
Will You Have To Pay Back Money From A Previous Stimulus Check
You might. Heres why: Some people were sent stimulus checks by accident. Whoops! We knowimagine the government making a mistake, right? Heres why you might need to send your money back:
- You make more than the income limit required to receive the stimulus money.
- You were given a check for someone who has died.
- Youre a nonresident alien.
- You dont have a Social Security number.
- You were claimed as a dependent on someone elses tax return.
If you know one of these applies to you, the IRS expects you to find the error and send the money back to them.14 So go ahead and be honest . You dont want any surprises when you go to file your taxes.
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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
Here’s What Another Check Could Look Like
Although the likelihood of a federal stimulus payment was greatly reduced by the outcome of the election, it is possible that some Americans could receive more help from the government. This could come in the form of some type of expanded Child Tax Credit.
Several prominent Republicans, including Mitt Romney, have proposed expanding this important type of aid offered to parents. Since an expanded Child Tax Credit was a key centerpiece of the American Rescue Plan Act, offering more aid to parents does have bipartisan support — although there is disagreement on the way in which the credit would be structured .
With control of Congress split, lawmakers will have to work across the aisle if they want to get anything done. Since a larger tax credit for parents is one of few areas where there is potential for agreement, it is possible lawmakers will work on finding consensus on this issue. As a result, this is the best chance Americans have of getting a fourth payment from the federal government.
Unless lawmakers do find agreement, though, additional federal aid isn’t likely to come. And if that’s the case, the only hope of continued financial assistance is if your state is among the many who are using COVID-19 relief funds to give back to their residents.
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Child Tax Credit: December End
Some families received another form of stimulus aid when the IRS in July deposited the first of six monthly cash payments into bank accounts of parents who qualify for the Child Tax Credit . Families on average received $423 in their first CTC payment, according to an analysis of Census data from the left-leaning advocacy group Economic Security Project.
Eligible families received up to $1,800 in cash through December, with the money parceled out in equal installments over the six months from July through December. The aid was due to the expanded CTC, which is part of President Joe Biden’s American Rescue Plan.
Families who qualify received $300 per month for each child under 6 and $250 for children between 6 to 17 years old. Several families that spoke to CBS MoneyWatch said the extra money would go toward child care, back-to-school supplies and other essentials.
While progressives and some Democrats urged lawmakers to continue the enhanced CTC, it appears stalled at the moment. That means families won’t receive a CTC payment in January or beyond.
More Stimulus Payments In The Inflation Reduction Act
President Biden and the Democrat controlled Congress narrowly passed a scaled down version of the Build Build Better act, known as the Inflation Reduction Act .
While this includes funding for several groups and additional taxes for corporations, it does not include another stimulus payment in 2022 or in 2023.
While many individuals and families could have benefited from some form of government support, especially in a high inflation environment, there simply was not enough political support for further payments or tax credit expansions.
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Bringing Inflation Under Control Is The Goal
Over the course of 2021, many economists and policymakers at the Federal Reserve felt that the higher-than-normal inflation would be temporary. However, as the level of inflation continued to rise to new heights by the end of the year the consensus shifted, and the central bank decided to be more hawkish.
In January the Fed announced that it would begin tapering its stimulus programs which have poured vast amounts of liquidity into the US economy. It has also helped the stock market reach ever greater heights.
Additionally, the central bankers will start increasing interest rates, expected to begin in March, which have been at near zero during the pandemic. The Fed will have a difficult balancing act to pace the fiscal tightening without entrenching inflation by moving too slow or causing a recession if it moves too fast.
Although another stimulus check could help people with the rising cost of living, the fear of driving inflation even higher by injecting even more money into the economy has silenced lawmakers calls to do so.
When Is The Next Stimulus Check Released
- 10:13 ET, Dec 3 2021
MILLIONS of Americans have gotten stimulus payments in the past two years, but is a fourth check on the way?
The short answer â probably not.
The direct payments were intended to help struggling citizens and stimulate the economy by giving them more money to spend during the financial downturn.
As a result of the pandemic, we saw multiple stimulus check packages passed across the nation.
Since federal stimulus seems to be over, states have stepped up and offered rebates and other direct payments to help those struggling.
Almost 20 states have sent or will be sending checks to offset rising inflation.
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What Do Tax Topic 152 Tax Topic 151 And Irs Error Messages Mean
Although the IRS Wheres My Refund tool will generally show one of the three main statuses Received, Approved or Sent for your refund, there are a wide variety of messages and notices that some users may see.
One of the most common is Tax Topic 152, a generic message indicating that youre likely getting a refund, but it hasnt been approved or sent yet. The notice simply links out to an informational topic page on the IRS FAQ website explaining the types and timing of tax refunds.
During the 2022 tax season, many Reddit tax filers who filed early received the Tax Topic 152 notice from the Wheres My Refund tool accompanied by a worrisome message: We apologize, but your return processing has been delayed beyond the normal time frame. You can continue to check back here for the most up to date information regarding your refund. We understand your tax refund is very important and we are working to process your return as quickly as possible.
The purported delay could be an automated message designed for taxpayers claiming the child tax credit or earned income tax credit. Due to additional fraud protection steps, the earliest filers with those credits can receive their refunds will be March 1. Several Reddit users commented that the message eventually cleared and they received notifications their refunds were sent.
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