Us Stimulus Checks: Live Updates
– Democrats will hold House vote on Build Back Better this evening
– Maine begins distributing a $285 stimulus checks
– President Bidensigned Bipartisan Infrastructure Bill into law on Monday. His second stop to promote it was Michigan on Wednesday.
– Congress could remove Social Security Numberrequirement for Child Tax Credit
– Distribution for the fifth Child Tax Credit payment started on Monday: Find out more
– for Congress to pass a fourth stimulus check before December
Are Adult Dependents Getting Third Stimulus Checks
The new stimulus plan expands eligibility to adult dependents, including college students, elderly relatives and disabled adults.
The text of the plan redefines the term dependent according to section 152 of the tax code, which includes both qualifying children and adults: Section 152 provides that the term dependent means a qualifying child ) or a qualifying relative ).
While the plan pays out $1,400 for each qualifying dependent, families should keep in mind that the targeted lower income ranges exclude them if they earn over $160,000.
For reference, the second stimulus checks provided additional $600 payments for qualifying dependents under the age of 17. So a couple filing jointly with three eligible children could get a maximum second payment of $3,000 .
Under the first and second rounds of stimulus checks, children and adult dependents over the age limit could not get an additional payment, and they did not qualify for a stimulus check of their own either.
With the new stimulus plan, however, both joint filers and heads of household get an additional $1,400 payment for each dependent, regardless of age. The table below breaks down the third stimulus checks for heads of household with one dependent:
|Stimulus Checks for Heads of Household & 1 Dependent|
|$120,000 and up||$0|
Senate Passes Amended $19 Trillion Covid
A $1.9 trillion U.S. coronavirus relief package took a step forward Saturday when the Senate voted 5049 to approve a bill that will be sent back to the House of Representatives because the Senate changed the legislation originally approved by the House.
Known as the American Rescue Plan Act, H.R. 1319, the bill will be sent to President Joe Bidens desk to be signed into law if it passes the House without changes. Congress is under pressure to get Bidens signature on the bill before legislation authorizing $300 a week in federal funds added to unemployment checks expires on March 14.
The Senate bill retains most of the tax provisions in the House bill unchanged. However, under the Senate bill eligibility for the recovery rebate credits would phase out more quickly than it did in the two previous rounds.
For single taxpayers, the phaseout will begin at an adjusted gross income of $75,000 and the credit will be completely phased out for taxpayers with an AGI over $80,000. For married taxpayers who file jointly, the phaseout will begin at an AGI of $150,000 and end at AGI of $160,000. And for heads of households, the phaseout will begin at an AGI of $112,500 and be complete at AGI of $120,000.
Under the House bill, the phaseout range was $25,000 for single taxpayers , $50,000 for joint filers, and $37,500 for heads of household.
The Senate bill also:
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How Are Americans Using Stimulus Checks
The Federal Reserve Bank of New York says that households are spending a smaller percentage of their stimulus checks and saving more. The that households set aside just under 25% of their third-round payments for consumption. This share fell from just over 29% of first-round payments reported in June 2020 and almost 26% of second-round payments reported in January 2021.
The table below is based on all three SCE surveys and breaks down the average percentage of stimulus payments spent, saved and used to pay off debt:
|New York Fed SCE Breakdown of Stimulus Check Spending|
The New York Fed also says that households expect to spend an average 13% of the third stimulus check on essential items and an average 8% on non-essential items.
For a comparison, preliminary data collected by the U.S. Census Bureau from shows that the majority of stimulus recipients are almost three times more likely to use checks to pay down debt than add to their savings.
An earlier showed that the majority of recipients who got the first stimulus check spent their payment on household expenses. Adults with incomes between $75,000 and $99,999 told the Census that they would most likely pay off debt or add to their savings. While adults making less than $25,000 said they would use their stimulus to pay for expenses.
For those households that spent their first stimulus checks, the study says:
Senate Passes $19 Trillion Covid Relief Bill Including $1400 Stimulus Checks With No Republican Support
WASHINGTON The Senate passed a $1.9 trillion coronavirus relief package Saturday, capping off a marathon overnight session after Democrats resolved internal clashes that threatened to derail President Joe Biden’s top legislative priority.
The far-reaching legislation includes $1,400 stimulus checks, $300-per-week jobless benefits through the summer, a child allowance of up to $3,600 for one year, $350 billion for state aid, $34 billion to expand Affordable Care Act subsidies and $14 billion for vaccine distribution.
The final vote was 50-49 along party lines, with every Republican voting “no.” It came after Democrats voted down a swath of Republican amendments on repeated votes of 50-49 to avoid disrupting the delicate agreement between progressive and moderate senators.
Before it can be signed by Biden, the legislation will have to be passed again by the House because the Senate made changes to its version. House Majority Leader Steny Hoyer, D-Md., said the chamber would vote Tuesday on the Senate-passed legislation.
Also Check: When Were Stimulus Checks Sent Out
When Will Americans See Relief
Heartbreakingly, not in time for Christmas. If the bill passes as expected today, direct deposits could be in bank accounts by the end of December or first two weeks of January. Paper checks will take another month or two beyond that. However, for families starving through the winter, this aid may be coming too late. An increase in grocery theft, homelessness, and suicides all point to a country grappling with a hopeless situation. Congresss failure to act until now nearly on the Eve of Christmas is a grim reminder of how removed politicians are from the plight of the average American.
You Might Get Two $1400 Stimulus Checks Next Month But Time Is Running Out For Congress To Approve Bill
- 17:48 ET, Jan 8 2022
A FOURTH federal stimulus check might not be on the horizon in 2022. Child Tax Credit will also not be sent to parents in January due to Congress not passing the bill.
There is still hope for some families, however. White House press secretary Jen Psaki said the Biden administration is workshopping a bill that could reinstate the payments if passed.
If we get it done in January, weve talked to Treasury officials and others about doing double payments in February as an option, she said.
If a family has gained another dependent since then, some of them might receive extra cash.
Still, any new stimulus plan will face multiple challenges with the 2022 midterm election.
Members of both parties might not show support to the president and his administration as it wouldnt be beneficial to their campaigns.
Read Also: Who Will Get The Next Stimulus Check
Congress Finally Passes The $19 Trillion Covid
We’re inching closer to a third stimulus check. After some unexpected delays, Congress finally passed the bill containing President Biden’s $1.9 trillion stimulus package on Wednesday afternoon. The bill will now be sent to the White House, where President Biden is expected to sign the legislation on Friday.
However, the stimulus check plan in the original version of the bill is different than what’s found in the final bill. While in the Senate, a more aggressive stimulus check “phase-out” rate was added. The new rate made the stimulus check provisions more “targeted” to people who need assistance the most. As a result, according to the Institute on Taxation and Economic Policy, nearly 12 million American adults who would have received a partial third stimulus check under the original bill won’t get any payment under the final bill.
Special Inspector General For Pandemic Recovery
The legislation also requires oversight by a separate Special Inspector General for Pandemic Recovery who will monitor loans and investments from a $500 billion corporate bailout fund established by the legislation. A provision in the legislation empowers the special inspector general to audit the use of the fund requires the Treasury Department and other executive-branch entities to provide information to the special inspector general and directs the special inspector general to report to Congress “without delay” if an agency unreasonably withholds requested information. The Pandemic Response Accountability Committee will coordinate the work of the SIGPR.
Amidst reports that Trump would nominate White House lawyer Brian Miller for this job, Montana Senator Jon Tester and Utah Senator Mitt Romney drafted a letter to the president requesting a different, independent Special Inspector General. Miller was confirmed by the Senate on June 2.
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How Is The Third Stimulus Check Calculated
The stimulus plan mandates the treasury to rely on 2019 and 2020 tax returns to calculate how much you could get for the third round of stimulus checks.
Congress approved limits based on adjusted gross income ranges. This means that taxpayers making less than the minimum threshold could get the full stimulus check, while those earning above it get reduced payments until they are fully phased out at higher incomes.
You can find your AGI on IRS form 1040. This is calculated by subtracting deductions like student loan interest, health savings account payments, and contributions to a traditional IRA from your gross income.
Your 2019 taxes had to be filed by July 15, 2020. And your 2020 taxes are due by the extended deadline of May 17. You can read more about when to file your tax returns for the third stimulus check, and other IRS requirements in two tax sections below.
American Rescue Plan Act Of 2021
|COVID-19 Stimulus Package, American Rescue Plan|
The American Rescue Plan Act of 2021, also called the COVID-19 Stimulus Package or American Rescue Plan, Pub L. No. 117-2 , is a US$1.9 trillioneconomic stimulus bill passed by the 117th United States Congress and signed into law by PresidentJoe Biden on March 11, 2021, to speed up the country’s recovery from the economic and health effects of the COVID-19 pandemic and the ongoing recession. First proposed on January 14, 2021, the package builds upon many of the measures in the CARES Act from March 2020 and in the Consolidated Appropriations Act, 2021, from December.
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How Many People Could Lose Expanded Unemployment Benefits In March
A lot. Maybe more than 11 million — one estimate, from The Century Foundation, predicted 4 million people would lose benefits in mid-March and an additional 7.3 million would lose benefits in subsequent weeks.
The two unemployment programs were created nearly a year ago by the CARES Act, which Congress passed in March 2020 and extended in December. More than a third of Americans reported their household has had trouble covering expenses during the pandemic, according to a survey conducted by the Census.
What Are The Main Sticking Points For Democrats
The most notable disagreement, however, has been among Democrats about whether to include the permanent change to the minimum wage. The Senate parliamentarian, however, has determined that the wage hike would require a supermajority vote under budget rules — more than Democrats can muster. All Democrats in the Senate must sign on to the bill for it to pass, however.
With the minimum wage stripped, the question then becomes whether House Democrats, like New York Rep. Alexandria Ocasio-Cortez, can support something that doesn’t deliver on one of their major goals. Read more on that here.
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Useful Information & Links:
– When were the three federal stimulus checks distributed?
– Calls for some Social Security beneficiaries to get additional support, could a fourth stimulus check be on the table?
Child Tax Credit
– Congress failed to secure an extension to the credit’s current structure last month, so families will have no direct payment in January
– How long do you have to wait to claim Social Security benefits?
– What are the tax brackets for retirees?
Useful Information & Links
Child Tax Credit
– Deadline passed to enroll in advance Child Tax Credit payment scheme. Households not signed up will need to wait to claim credit on 2021 tax returns
– Final 2021 Child Tax Credit payment coming 15 December
– Could a fourth stimulus check be approved in November 2021?
– Which states are sending out their own payments?
– 750,000 Californians to receive Golden State Stimulus checks
– What will the monthly amount for Social Security disability be?
– At what age is Social Securityno longer taxed in the US?
Democrats claim the Build Back Better bill will reduce the deficit
The financial rammifications of the Build Back Better proposals have been the main sticking point for the small number of moderate Democrats who are yet to commit their support to the bill. Senator Joe Manchin is known to be waiting for more financial information before agreeing to vote for the package, and House Majority Leader Steny Hoyer has claimed that the cost of the $1.75 trillion bill is offset by the economic boost that the policies will provide.
Democrats hit back on Build Back Better response
House Democrats make a last push for Build Back Better support
Democrats confident of Build Back Better passage
What is in the Build Back Better plan?
Build Back Better could follow infrastructure bill passage
Here, we take a look at what’s in the infrastructure bill?
Democrats hope for imminent Build Back Better vote
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A Shutdown Stopgap And Still No Second Stimulus Until Sunday
After negotiations over a $900 billion COVID-19 stimulus package dragged on for another day, both the House and Senate passed a two-day temporary spending bill on Friday night in order to keep the federal government funded before it was due to shutdown at midnight. As a result, Congress now has until midnight on Sunday to work out a deal, and while both Republican and Democratic leaders expressed optimism that would happen it isnt over until its over.
A $15 Minimum Wage Will Have To Wait For Another Day
Many Democrats hoped to include a provision in the Covid-19 relief package that would have increased the federal minimum wage, which has been at $7.25 since 2009, to $15 by 2025. The provision did make it through the House-passed bill, but it was struck down by the Senate parliamentarian, who ruled it didnt fit under the rules of the budget reconciliation process Democrats are using to pass the stimulus.
There was some hope that Democrats might find a different avenue for increasing the minimum wage to $15, including overruling the parliamentarian, getting rid of the filibuster, or finding some way to compel companies to pay a $15 minimum wage by taxing them if they didnt. But ultimately, they forged ahead with the Senate bill without it.
One thing that became clear as Democrats in the Senate tried to hash this out: A significant portion of the caucus doesnt want to raise the minimum wage to $15 by 2025. A Senate amendment to put a $15 minimum wage back in the Covid-19 bill was voted down on Friday, with 58 senators voting against it.
The legislation may not be everything progressives wanted, but the bills passage in the Senate is an important step toward getting help to millions of people.
Recommended Reading: Whats In The 1.9 Trillion Stimulus Bill
Congress Passes Stimulus Bill
With Congress on the verge of passing a broad, $789 billion economic stimulus bill, Oklahoma Congressional District 3 Representative Frank Lucas remains opposed to the legislation.
In a special phone interview Thursday, Lucas shared his thoughts on the bill and its potential.
Although he does not believe the package will have the overall impact President Obama and Congressional Democrats have advertised, Lucas believes elements of the bill are necessary to jump start the sputtering economy.
I think if youre going to have a stimulus bill you should have a stimulus bill, Lucas said.
A news release issued by Lucass office says the package, as of Thursday, was initially touted as an infrastructure stimulus package, but only 3 per cent of the package goes to building roads and highways.
The release says the package includes $600 million for government cars, $50 million for the National Endowment of the Arts, and $21 million for sodding the National Mall between the United States Capitol and the Washington Monument in Washington, DC.
I agree with spending federal money on things that will create economic activity in a hurry, he said. So much of the bill that passed out of the House was a backlog of spending from the last 12 to 14 years.
Lucas said he supports infrastructure improvement projects in the bill, specifically projects for road, highway and dam enhancements. Lucas said such projects could rapidly have a positive impact on the economy.
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