Stimulus Checks Substantially Reduced Hardship Study Shows
Researchers found that sharp declines in food shortages, financial instability and anxiety coincided with the two most recent rounds of payments.
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WASHINGTON Julesa Webb resumed an old habit: serving her children three meals a day. Corrine Young paid the water bill and stopped bathing at her neighbors apartment. Chenetta Ray cried, thanked Jesus and rushed to spend the money on a medical test to treat her cancer.
In offering most Americans two more rounds of stimulus checks in the past six months, totaling $2,000 a person, the federal government effectively conducted a huge experiment in safety net policy. Supporters said a quick, broad outpouring of cash would ease the economic hardships caused by the coronavirus pandemic. Skeptics called the policy wasteful and expensive.
The aid followed an earlier round of stimulus checks, sent a year ago, and the results are being scrutinized for lessons on how to help the needy in less extraordinary times.
Among households with children, reports of food shortages fell 42 percent from January through April. A broader gauge of financial instability fell 43 percent. Among all households, frequent anxiety and depression fell by more than 20 percent.
It bridged a gap, Ms. Ray said, while she waited for slower forms of assistance, like rental aid.
Federal Funding Retention Bonuses
Several states have decided to use some of the federal money as retention bonuses for their teachers, as most schools are expected to open in-person this year, AS reported. The bonuses also acts as a thank you for the particularly rough school year most teachers had to endure.
Florida allocated a $1000 check to most teachers and administrators, but controversy arose when Governor DeSantis notably left some educators out. The situation is still developing.
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Georgia has one of the more generous plans, with Governor Kemp authorizing all full-time teachers and administrators to receive $1,000 checks, with part-time teachers receiving $500. There is a plan underway to provide for pre-K educators as well.
Although a retention bonus like Georgia and Florida has not yet been outlined, Michigan sent out $500 hazard pay bonuses to its teachers earlier in the year.
Tennessees state government passed a bill in June that scrapped an expected 2% raise and replaced it with a $1,000 check it labeled as a hazard pay bonus to full-time teachers. Part-time teachers get $500. Eligible individuals will receive their checks by the end of the year.
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More than 585,000 payments worth more than $1.2 billion were sent to people the IRS did not previously have on record who had recently filed returns.
This latest batch also included more than 570,000 “plus-up” payments worth almost $1 billion to people who the IRS found were eligible for new or additional sums after processing their tax returns.
The government plans to continue to issue new payments on a weekly basis.
It is also urging those who do not typically file taxes to submit a return this year in order to get their payments, including the homeless and rural poor.
Federal beneficiaries are also encouraged to file tax returns to ensure eligible dependents also receive their stimulus money. The Social Security Administration also just issued an announcement urging beneficiaries to file for the recovery rebate credit if they missed out on the first $1,200 or second $600 checks.
Filing a tax return not only helps the government assess whether additional stimulus money is due to you, it can also help determine whether you may be eligible for additional tax credits, such as the earned income tax credit or child tax credit.
The IRS provides more information on its website on how to claim your stimulus checks if you are not usually required to file a tax return.
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Timing Of Third Stimulus Checks
Question: When will I get my third stimulus check?
Answer: Millions of Americans have already received their third stimulus check. And the IRS will be sending out more over the next several weeks. So, if you haven’t received your payment yet , it should arrive relatively soon.
How long it will take to send all payments is not known yet. The IRS has a lot on its plate right now. We’re in the middle of tax return filing season, so the IRS is already busy processing tax returns. The tax agency also has to send refunds for people who reported unemployment compensation on their 2020 return and come up with a way to send periodic child tax credit payments later this year. All of this could very well slow down the processing and delivery of third-round stimulus checks.
If the IRS already has your bank account information either from a recent tax payment that you made, a tax refund it sent you, or some other source then expect to get your third stimulus check faster. That’s because the IRS will be able to directly deposit the payment into your bank account. The IRS can also make a third stimulus payment to a Direct Express debit card account, a U.S. Debit Card account, or other Treasury-sponsored account. Otherwise, you’ll get a paper check in the mail.
If you already have a prepaid debit card from the IRS , you’ll get a new card if the IRS decides to send your third stimulus payment to you in that form.
Americans Are Still Waiting For Stimulus Checks Let States And Localities Distribute Them
As checks are distributed through the Biden administrations $1.9 trillion stimulus package, its important to remember the work is not finished until the Coronavirus Aid, Relief and Economic Security, or CARES Acts beneficiaries including the 25 million workers who were unemployed as a result of the coronavirus recession actually receive their checks. While often under-emphasized or simply taken for granted, the process of getting federal resources to people is incredibly difficult in normal circumstances and amounts to a herculean lift for community service providers and city and state agencies during a pandemic.
This problem could be solved by simply allocating just 0.1 percent of all stimulus funds to states, municipalities and community organizations to reach those who need it the most.
While its unknown how many eligible Americans have not received their third stimulus check, prior stimulus packages offer worrying lessons. An estimated 17 percent of eligible households never received stimulus checks in 2008 and according to the Center for Budget and Policy Priorities, approximately 12 million Americans who did not file a federal tax return in 2019 were unlikely to have received the $1,200 promised by the CARES Act.
Scott Andes is the executive director of the Block Center for Technology and Society at Carnegie Mellon University.
When Will I Get The Stimulus Check
All first stimulus checks were issued by December 31, 2020. If you are missing your stimulus check or didnt get the full amount that you are eligible for, you can claim your first stimulus check as the Recovery Rebate Tax Credit on your 2020 tax return or use GetCTC.org if you dont have a filing requirement.
Who Is Eligible For The Economic Impact Payment
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return.
Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
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Advance Child Tax Credit
Even if you dont pay any taxes, you may qualify for a refund of the CTC.
The CTC was expanded under the American Rescue Plan Act of 2021 for tax year 2021 only. If you are eligible, you should have begun receiving advance Child Tax Credit payments on July 15. The payments will continue monthly through December 2021. Under ARPA, families are eligible to receive:
- Up to $3,000 per qualifying child between ages 6 and 17
- Up to $3,600 per qualifying child under age 6
The Internal Revenue Service began sending out letters in early June to more than 36 million families who may be eligible for the monthly payments. Most families do not need to do anything to get their payments, as long as theyve filed their 2020 or 2019 tax return. Learn more about the letter and how it can help you determine your eligibility.
Child Tax Credit Survey
Wednesday, meanwhile, marked the distribution of the final child tax credit payment. The IRS has said that Congress needs to pass President Bidens $1.9 trillion spending plan thats currently languishing in the Senate by the end of this month in order for the tax agency to have time to get set up for more child tax credit checks come January 15.
Along these lines, ParentsTogether, a national parents advocacy group with more than 2 million members nationwide, has released the results of a new survey of parents. Its findings, among other things:
- When asked what would happen to their familys finances if the child tax credit payments stopped after this month? 50% of respondents said it will be more difficult for them to meet their familys basic needs. And 36% said they will no longer be able to meet their familys basic needs.
- 1 in 3 respondents said if the child tax credit checks stop, they wont be able to afford enough food.
- 76% of respondents said the monthly checks have made them less anxious about their finances.
- 81% of respondents said its extremely important for their families that the checks continue past this year. Thats up from 73% in September.
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Your Stimulus Check Is Coming Soon Heres How To Prepare
Congress passed the Coronavirus Aid, Relief, and Economic Security Act, which includes providing stimulus checks to stimulate the economy, and provide financial relief. The Treasury Department and the Internal Revenue Service will distribute these checks in the next three weeks. Heres what you need to know to ensure you receive your check, and how to make the most of your money.
Did Businesses Receive Any Stimulus Support
While the three rounds of government stimulus checks were directed at individuals and their children, businesses were also provided with access to much-needed funds. On top of more traditional funding, such as SBA 7 loans, qualifying companies had access to two rounds of Paycheck Protection Program funding, which provided forgivable loans to help companies keep employees on the payroll. The Economic Injury Disaster Loan program was expanded to businesses across the country, offering low-rate, 30-year loans to companies in need of aid.
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How To Notify The Irs Of An Issue With Your Check
The IRS doesn’t want you to call if you encounter a problem with the delivery or amount of your stimulus check. So what to do instead? Our guide walks you through how to report stimulus check problems, including checks that never arrived , direct deposit payments that went to the wrong account and other issues.
People Who Don’t File A Tax Return
Question: What if I don’t file a 2019 or 2020 tax return?
Answer: Some people don’t file a tax return because their income doesn’t reach the filing requirement threshold. If that’s the case, the IRS will send a third stimulus check based on whatever information, if any, is available to it. That information potentially could come from the Social Security Administration, Railroad Retirement Board, or Veterans Administration if you’re currently receiving benefits from one of those federal agencies. If that’s the case, you’ll generally receive your third stimulus payment the same way that you get your regular benefits. If you supplied the IRS information last year through its online Non-Filers tool or by submitting a special simplified tax return, the tax agency can use that information, too.
Some people who receive a third stimulus check based on information from the SSA, RRB, or VA may still want to file a 2020 tax return even if they aren’t required to file to get an additional payment for a spouse or dependent.
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Previous State Stimulus Efforts
Other states have already issued stimulus checks with their pandemic funds, such as Colorado, which in December issued $375 checks to more than 400,000 residents who had claimed unemployment benefits during the pandemic. Other states and localities that have provided pandemic relief to residents include New Mexico, Washington, D.C., and Vermont.
In the meantime, about 70 million households are receiving monthly checks through December via the expanded federal Child Tax Credit, which is providing up to $300 per child. That money is helping families with children pay for basics such as food, school supplies and clothing, according to an analysis of Census data from the left-leaning Economic Security Project.
California Stimulus Checks: Final Round Being Distributed
With this final round of payments, California has now issued more than 8 million checks and deposits, valued at more than $5.9 billion.
The second round of stimulus checks for California residents was part of Gov. Gavin Newsom‘s $100 billion budget that he signed into law in July. As part of the plan, the state expected to provide billions in coronavirus relief to 15.2 million California households or about two-thirds of the state’s taxpayers.
“The Golden State Stimulus is key to lifting up those hit hardest by the pandemic and supporting Californias economic recovery, putting money directly in the hands of folks who will spend it on basic needs and within their local communities,” Newsom said in a statement at the time.
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Eligible recipients include current California residents who lived in the state for more than half of the 2020 tax year and individuals who earned $75,000 or less in 2020.
Taxpayers filing with an Individual Taxpayer Identification Number who have applied for but have not received their ITIN by October 15, 2021, have until February 15, 2022, to file their return and still be eligible for GSS I and GSS II.
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First Round Of Economic Stimulus Checks: April 2020
The CAREs Act included a provision for a round of stimulus payments eligible tax-paying adults received a check of up to $1,200 while eligible dependents under 16 years of age received $500 each .
The payments were made to everyone earning under the income limits, which were set at Adjusted Gross Income of $75,000 with the stimulus check value reducing in a tapered fashion up to a maximum of $99,000 . The very first stimulus checks were paid into people’s bank accounts over the weekend of the 11 and 12 of April, either via direct deposit into individuals bank accounts, paper checks sent through the post or in some cases, through a prepaid debit card, the Economic Impact Payment Card which were sent out in late May/early June last year.
Who Gets A Stimulus Check
Stimulus checks are available to eligible U.S. individuals with Social Security numbers. However, eligibility rules vary depending on the checks.
For the first two payments, anyone claimed as a dependent wasn’t eligible for their own check. However, individuals who claimed dependents under 17 could receive a payment for them. The third check still prohibits dependents from claiming their own checks. However, individuals who claim dependents can now receive a payment for adult dependents as well as for dependent children over age 17.
There are also income limits. Each of the three checks is available in full to single tax filers with an income under $75,00. Heads of house with an income under $112,500 are also eligible, as are married joint filers with an income under $150,000. However, phase-out rules — the level at which high earners lose eligibility for checks — differ for each payment, as we’ll discuss in more detail below.
The IRS utilized tax return information from 2018 or 2019 to determine income and eligibility for the first two checks. It will use tax return information from 2019 or 2020 to determine income and eligibility for the third payment. The agency also obtained information from the Social Security Administration and VA to send payments to benefits recipients who don’t file tax returns. And it established an online form for non-filers to claim their payments.
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