A Fourth Stimulus Check Is Possible
For most Americans, it is extremely unlikely a fourth stimulus check will be provided. Here are a few key reasons why:
For all of these reasons, another check is unlikely to happen unless conditions take a dramatic turn for the worse — such as another COVID-19 variant that is vaccine resistant, easily transmitted, and more deadly.
Irs Sending Letters To Over 9 Million Potentially Eligible Families Who Did Not Claim Stimulus Payments Eitc Child Tax Credit And Other Benefits Free File To Stay Open Until Nov 17
IR-2022-178, October 13, 2022
WASHINGTON Starting this week, the Internal Revenue Service is sending letters to more than 9 million individuals and families who appear to qualify for a variety of key tax benefits but did not claim them by filing a 2021 federal income tax return. Many in this group may be eligible to claim some or all of the 2021 Recovery Rebate Credit, the Child Tax Credit, the Earned Income Tax Credit and other tax credits depending on their personal and family situation.
The special reminder letters, which will be arriving in mailboxes over the next few weeks, are being sent to people who appear to qualify for the Child Tax Credit , Recovery Rebate Credit or Earned Income Tax Credit but haven’t yet filed a 2021 return to claim them. The letter, printed in both English and Spanish, provides a brief overview of each of these three credits.
“The IRS wants to remind potentially eligible people, especially families, that they may qualify for these valuable tax credits,” said IRS Commissioner Chuck Rettig. “We encourage people who haven’t filed a tax return yet for 2021 to review these options. Even if they aren’t required to file a tax return, they may still qualify for several important credits. We don’t want people to overlook these tax credits, and the letters will remind people of their potential eligibility and steps they can take.”
Will There Be A New Stimulus Check For Fall 2022 Two Scenarios Why You May Get It
MANY Americans have been wondering if there will be another stimulus payment on its way this fall.
During the height of the pandemic, three stimulus checks were issued.
The first round was worth $1,200, followed by $600 and $1,400, respectively.
Currently, there is high inflation in the country and although a direct payment could help Americans offset costs a bit, it could also add to the inflationary spiral.
At the moment, a fourth stimulus payment seems unlikely to happen but there are a couple of scenarios in which it could.
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Is Another $1200 Stimulus Check Expected In 2022
It is no question that COVID-19 brought challenges to the world that we havent experienced in modern times. Not only did COVID-19 bring severe health challenges and concerns to the surface, but COVID-19 also created incredibly challenging economic times.
With high unemployment rates, frequent layoffs, and businesses that were closing nearly every single day, the United States realized they needed to react. The federal government did something unprecedented by issuing $1,200 stimulus checks to millions of Americans in .
Lets take a look at the effect this had on the economy. Well also look into whether or not we should expect another stimulus check.
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.
Are 4th Stimulus Checks Really Happening
They arebut theyre not coming from the federal government like the last three stimulus checks did. This time, it all depends on what state you live in. Thats right, these fourth stimulus checks are being given out to some folks at the state and city levels now.
Back when the American Rescue Plan rolled out, all 50 states as a whole were given $195 billion to help fund their own economic recovery closer to home.1 Thats a lot of dough. But heres the catchthey dont have forever to spend that money. The states have to figure out what to spend the money on by the end of 2024, and then they have until the end of 2026 to use up all that cash.2 Those deadlines might sound super far away, but the clock is ticking here.
Oregon: Direct Payments Of $600
In March 2022, the Oregon legislature voted to approve one-time $600 payments to some residents. Taxpayers who received the earned income tax credit on their 2020 state tax return, and who lived in Oregon for the last six months of 2020, were eligible to receive one payment per household.
The state used federal pandemic aid to provide these direct payments to low-income residents, and more than 236,000 households received a payment. All payments were distributed by direct deposit or mailed check by July 31, 2022.
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What Was The Federal Governments Reasoning
Before addressing the impact that the $1,200 stimulus check had on the economy, lets first visit why the government chose to react in this fashion.
The first stimulus check was issued in April of 2020, which was right at the start of the strict COVID-19 lockdowns. In April of 2020, the United States saw an unemployment rate of 14.8% which was the highest unemployment rate the U.S. has seen in a long time. The United States needed to address both the health risks that COVID-19 posed and the economic risks that were unfolding as a result of the pandemic.
The United States believed a stimulus check for qualifying taxpayers would offer two main benefits:
- Provide a financial cushion for those who have lost their jobs
- Provide an incentive for people to spend money, which would stimulate the economy
The added benefit of this would be fewer businesses would need to close, so fewer people would be laid off.
Federal Aid Still Available
Student loan relief: Those with federal student loans have not had to make any payments since March 2020. During this time, interest has stopped adding up and collections on defaulted debt have been on hold. Borrowers’ balances have effectively been frozen if they chose not to continue making payments.
The pause on payments has been extended several times. Payments are now set to resume on May 1.
Rental assistance: Congress authorized $47 billion for emergency rental assistance over the past year, and more than half of those funds remain available.
Households are eligible for the money if they experienced financial hardship due to the pandemic, have incomes at or below 80% of their area median income, can demonstrate risk of experiencing homelessness, or already qualify for unemployment benefits.
Hundreds of state-, county- and city-run programs were created to distribute the money. They have been successful in many communities, but some were extremely slow in getting money out the door. The Treasury Department is currently shifting unused funds to places that have run out money and still have people in need.
A federal moratorium on evictions expired in August after being in place for nearly a year. Evictions have ticked up since then but remain well below the historical pre-pandemic average, according to The Eviction Lab at Princeton University.
Health care subsidies: Americans can still access generous federal subsidies to buy Affordable Care Act policies for 2022.
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Heres Who Gets A $1400 Stimulus Check In 2022
Back in March, President Joe Biden signed into law a massive economic aid bill including a $1,400 stimulus check for more than 100 million households. All signs indicate that third stimulus check will be the final one sent out during this crisis.
But this doesn’t mean the IRS is done sending payments: Some taxpayers will be entitled to a check when they file their 2021 tax return next year.
Who gets the check in 2022? Eligible parents who welcomed a newborn into their family during the 2021 calendar year. The $1,400 payments sent out earlier this year were based on 2020 tax returnswhich, of course, didn’t include 2021 newborns. Both Fortuneand Insider confirmed earlier this year that a stimulus check would go out to eligible parents of 2021 newborns once they file their tax return next year.
Of course, parents would still need to meet the income requirements. For single filers, that means making no more than $75,000 per year in adjusted gross income, while couples filing jointly could still get the full $1,400 check for each of their 2021 newborns if their income is less than $150,000. Taxpayers earning above those levels would see their checks reduced, however, and they’d be completely phased out if they’re a single-filer earning above $80,000 or a couple filing jointly earning above $160,000.
Illinois: $50 And $300 Rebates
There are two rebates available to 2021 Illinois residents.
The first rebate is the individual income tax rebate, available for residents whose adjusted gross income is less than $200,000 per year . Each individual will receive $50, with an additional $100 per eligible dependent .
The second rebate is a property tax rebate, available for residents making $250,000 or less . The rebate is equal to the property tax credit you qualified to claim on your tax return, up to a maximum of $300.
The state started issuing rebates the week of September 12 it will take several months to issue them all, according to the Illinois Department of Revenue.
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Did The $1200 Check Help
The $1,200 stimulus check had a big impact on the economy. Despite rising COVID-19 cases, the unemployment rate in the United States started to decline as well. In May of 2020, the U.S. unemployment rate was 13.3%, down from its high of 14.8% in April. In June of 2020, that figure continued to decline, ultimately reaching 11.1% at its lowest.
The additional money that Americans had was being put to use. The increase in consumer demand created the need to keep people employed in plenty of industries and allowed businesses to survive. There is without question, the $1,200 stimulus check immediately stimulated the economy, but it wasnt the only driving force.
Funding For Essential Workers Who Keep America Fed
Farm and meatpacking plant workers will be able to receive money through a new Farm and Food Workers Relief grant program, announced last fall.
The U.S. Department of Agriculture says grocery workers also will be eligible for some of the cash.
The Americans who’ll qualify for the payments all who work in food-related industries, where sheltering in place or working from home during the pandemic has not been possible.
State agencies, nonprofits and tribal entities have until Feb. 8 to apply to the government for the funds, which those groups will receive in June. Workers will apply to those groups to receive their payments.
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How Do I Get My Third Stimulus Check
You dont need to do anything if:
- You have filed a tax return for tax year 2019 or 2020.
- You are a Social Security recipient, including Social Security Disability Insurance , railroad retiree. Or you are a Supplemental Security Insurance and Veterans Affairs beneficiary.
- You successfully signed up for the first stimulus check online using the IRS Non-Filers tool or submitted a simplified tax return that has been processed by the IRS.
If you are missing your third stimulus check, file your 2020 tax return or use GetCTC.org if you dont have a filing requirement. By submitting your information to the IRS, you will be signed up and automatically sent the third stimulus check.
Democrats And Republicans Are Discussing New Covid
A stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak is seen in San Antonio on Jan. 28, 2021. A new round of coronavirus stimulus could be on the way.
Eric Gay, Associated Press
A new round of coronavirus stimulus could be on the way.
Democratic and Republican lawmakers have held early discussions about a new round of potential coronavirus stimulus spending, especially with the omicron variant surging through the United States, according to The Washington Post.
- The relief would specifically help businesses such as restaurants, performance venues, gyms and even minor league sports teams that could face a trouble from another wave of COVID-19, The Washington Post reports.
- The spending would be a mix of new spending and repurposing of previous unused spending.
- Its unclear if the new round of spending would include stimulus checks to the American people.
- However, the White House said the economy appears to be strong enough to handle the omicron wave.
- We started with restaurants but were prepared to expand it if we can have the necessary support, Cardin said Wednesday. Theres other industries that have legitimate concerns.
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Rhode Island: $250 Rebate Per Child
Rhode Island is sending 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, for a maximum of $750. 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 check distribution began in October. Taxpayers who filed their 2021 state tax returns on extension by October 2022 will receive their rebates starting in December. You can check your rebate status on Rhode Islands Division of Taxation website.
Minnesota: $488 Payments For Frontline Workers
Some frontline workers received a one-time payment of $488 in October, 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 werent eligible for remote work.
Workers with direct Covid-19 patient-care responsibilities must have had an adjusted gross income of less than $175,000 between December 2019 and January 2022 workers without direct patient-care responsibilities must have had an adjusted gross income of less than $85,000 annually for the same period. Applications for the payment are now closed.
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Who Is Eligible For The Third Stimulus Check
1. Income: The income requirements to receive the full payment are the same as the first and second stimulus checks. There is no minimum income needed to qualify for the payment. Households with adjusted gross income up to $75,000 for individuals will receive the full payment. The third stimulus payment starts to phaseout for people with higher earnings. The third stimulus checks maximum income limit is lower than the first and second stimulus check. Single filers who earned more than $80,000 in 2020 are ineligible for the third stimulus check.
View the chart below to compare income requirements for the first, second, and third stimulus checks.
|Income to Receive Full Stimulus Payment||First Stimulus Check Maximum Income Limit||Second Stimulus Check Maximum Income Limit||Third Stimulus Check Maximum Income Limit|
2. Social Security Number: This requirement is different from the first and second stimulus check.
Any family member that has a Social Security number or dependent can qualify for the third stimulus check. For example, in a household where both parents have ITINs, and their children have SSNs, the children qualify for stimulus checks, even though the parents dont.
See the chart below for further explanation of how this works.
More Stimulus Checks Are Likelyjust Not Until The Next Recession
It took no time for Americans to get on board with stimulus checks. Back in March 2020, a Fortune-SurveyMonkey poll found that 89% of Democrats and 85% of Republicans supported a one-time direct payment. Its popularity didnt stop there: Democrats arguably used the promise of a $2,000 stimulus check to win the two Georgia Senate runoff races in January. Those victories, of course, gave Democrats control of the U.S. Senate and the power to pass the third check in March.
Those direct payments certainly had an impact on the broader economy. Look no further than a study by University of Michigan researchers that found the checks coincided with a drop in financial instability among recipients. However, the economic benefits arent why stimulus checks are poised to be a lasting policy creation of the COVID-19 recession. Instead, its the popularity and political power of the checks.
The politics of it suggest there will be future stimulus checks, Moodys Analytics chief economist Mark Zandi told Fortune this summer. Amid future recessions, Zandi says, lawmakers will surely face pressure from some voters to issue direct payments.
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