Sunday, October 2, 2022

What Is The Latest On The Stimulus Check

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How Will Child Support Arrears And Payments Be Impacted With Stimulus Check

Latest on the stimulus and $1,400 checks

I seem to be getting a lot of comments on this question around child support. The IRS has confirmed that the stimulus check payment will NOT be offset or intercepted for those owe tax, have a payment agreement or owe other federal or state debts. It will however be OFFSET for past-due child support. This is because a court order for child support continues until it is modified or terminated. Similarly with unemployment compensation stimulus increases, your child support may be withheld from the UI payments. You will get a notice from BFS if this happens.

Stimulus Check Update: $3600 Is Coming In 2022 And You Might Qualify To Get It

At this point in 2022, the stimulus check story is actually proceeding down two tracks. The first one to note is the obvious one the one everybody is interested in. It entails the possibility of all-new stimulus checks at some point this year. As in, will we get them or not? And when? Along those lines, everyone is still waiting to see what the Senate will do about the possibility of a year-long child tax credit extension. Something the body left unfinished as 2021 drew to a close, with West Virginia Democrat Joe Manchin saying in an interview that his crucial vote on the package would be a no, throwing the whole process into chaos.

Which Cities Are Giving Out 4th Stimulus Checks

Thats rightcities are now getting in on the stimulus check action too . See if your town made the list:

  • Chicago

Low-income residents of The Windy City have been given stimulus checks at random. You read that right. Chicago will give out $500 checks to 5,000 people each month throughout 2022. Theyll be selected at random for this stimulus lottery.19

  • Los Angeles

Like Chicago, LA is handing out payments to low-income residents for a year. Their program, called BIG:LEAP, will give 3,200 randomly chosen people $1,000 each month.20

  • Pittsburgh

Pittsburghs program is called the Assured Cash Experiment and gives 200 low-income residents $500 each monthfor two years. The program will spend $2.5 million on lower-income zip codes.21

  • Santa Ana

The close-by neighbors of LA are getting a stimulus program of their own called the Revive Santa Ana Resident Stimulus Program. It will give out $6 million to neighborhoods that fall below the poverty level in Santa Ana. Payments of $300 will be loaded onto prepaid debit cards and given out door to door to about 20,000 residents.22

  • Seattle

Seattle has one of the more generous payouts on the list. The Seattle Relief Fund is a $16 million program that gives payments of $1,0003,000 to low-income residents of the Emerald City.23

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Checks Of Up To $350 With The Family Security Act 2022

There has been a proposal from Mitt Romney, the senator from Utah for a new stimulus check to be made available for American families.

Through his Family Security Act proposal, eligible families with children up to five years of age would get $350 per month, while families with children between the ages of six and 17 would get $250 per month.

“Now is the time to renew our commitment to families to help them meet the challenges they face as they take on most important work any of us will ever do-raising our society’s children,” Romney said. It remains to be seen, though, if this measure will pass.

Read more about the Family Security Act 2022.

Pros Of Taking The Monthly Child Tax Credit Payments

Second stimulus check: 26 million more could benefit from GOP bill
  • 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!

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How To Claim Your Recovery Rebate Credit

A reminder: The IRS will not automatically calculate any Recovery Rebate Credit amount for which you may be entitled when you file.

“Individuals must claim the 2021 Recovery Rebate Credit on their 2021 income tax return in order to get this money,” the IRS said in its fact sheet.

To see if you are eligible for a payment, you can find more information on the Recovery Rebate Credit on the agency’s website.

If you have no income or up to $73,000 in income, you can file your federal tax return for free using the IRS’ Free File program.

For people who already received their third stimulus checks, there is no need to include information on those payments in their 2021 returns, according to the IRS.

If you are still missing a first or second stimulus check that was sent by the government in 2020, you will have to file a 2020 tax return rather than claim that money on your 2021 return, according to the IRS.

Will The Irs Tax My Third Stimulus Check

The IRS does not consider stimulus checks to be taxable income. This means that you do not have to report the money on your federal income tax return, or pay income taxes on your stimulus check.

You should also note, that if you owe taxes, you could still qualify to get a stimulus payment because the IRS does not use it to offset federal or state tax debts like it normally does with tax refunds.

For private debts, however, the American Bankers Association has pointed out a loophole in the new stimulus plan where banks and other financial services providers will be legally required to comply with court ordered garnishments. The association says that without legislation to shield your third stimulus payment, creditors or collectors can take it to pay off existing debt.

As a reference, the 2020 COVID-Related Tax Relief Act did shield stimulus payments from private debt collection: The Advance payments are generally not subject to administrative offset for past due federal or state debts. In addition, the payments are protected from bank garnishment or levy by private creditors or debt collectors.

But while your stimulus money could be taken to pay for private debt, the new offsetting rules prevent the IRS from deducting overdue child support from eligible recipients. You should keep in mind, however, that the IRS intercepted or reduced payment from the first round of stimulus checks for past-due child support.

Read Also: Irs Stimulus Checks Second Round

Another Stimulus Check Is Possible Only Under These Circumstances

Another stimulus check is possible only if a majority of the U.S. House of Representatives and U.S. Senate vote for an additional direct payment — and if President Joe Biden signs a financial relief bill into law authorizing the distribution of more funds.

Many Democrats would likely be willing to sign onto a proposal providing more money to the public. In fact, there have been several proposals put forth that would offer more stimulus relief. These include Build Back Better, which offered an expanded Child Tax Credit for parents as well as several bills that would pay money to most Americans to help them deal with high gas prices. None of these bills have passed, to date.

One big issue is that Democrats have a narrow majority in the House of Representatives. And their majority in the Senate is even smaller. There are just 50 senators who generally vote with the Democrats, and Vice President Kamala Harris can serve as the tie-breaker if the Senate splits evenly.

To make matters more difficult, most legislation that passes through the Senate can be blocked by a procedural maneuver called the filibuster, if Republicans choose to exercise this option. To break a filibuster and move a bill through, 60 votes would be required. That means if lawmakers were to pass another stimulus bill through the regular legislative process, the votes of at least 10 Republicans would be needed.

Who’s Shut Out In The Final Bill

Stimulus Check Update: What’s The Latest On A Second Payment Package?

People who file their tax return using the “single” filing status with an adjusted gross income between $80,000 and $100,000 “head-of-household” filers with an AGI between $120,000 and $150,000 and married couples filing a “joint” return with an AGI between $160,000 and $200,000 won’t get a third stimulus check. These people would have gotten a reduced payment under the original bill, but they won’t get any money under the final bill sent to the president.

Under both versions of the bill, singles with an AGI above $100,000, head-of-household filers with an AGI exceeding $150,000, and joint filers with an AGI over $200,000 wouldn’t receive any third-round stimulus payments. For more on who will or won’t get a third stimulus check under the final bill, see Who Won’t Get a Third Stimulus Check Under the New Senate Plan?

To calculate the amount of YOUR third stimulus check , use our handy Third Stimulus Check Calculator. All you have to do is answer three easy questions to get an estimated payment amount.

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Who Is Eligible For The Third Stimulus Check

For the last two stimulus payments, single taxpayers earning up to $75,000 a year and couples earning up to $150,000 a year were able to get the full amount. Parents also received stimulus payments for each dependent child under age 17.7,8

Those income limits wont change for the third stimulus payment, although it targets payments to lower income earners. Under the American Rescue Plan, payments will begin phasing out for single filers making between $75,000 and $80,000 and couples making between $150,000 and $160,000.9

Eligibility for the third stimulus check also expands to cover any non-child dependents. That means taxpayers who support certain eligible dependents age 17 and older might receive additional money as well.10

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.

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Which Tax Return Is Used For My Third Stimulus Check

The IRS uses 2019 or 2020 tax returns to determine eligibility for your third stimulus check. You should note that if your income fell in the 2020 tax year, filing your tax return earlier could help you qualify for a bigger third stimulus check. The new stimulus plan targets lower income ranges to exclude higher-earning taxpayers from getting a payment.

As we pointed out before, individuals making under $75,000 get the maximum stimulus payment of $1,400 . But payments are capped at $80,000 for single filers and $160,000 for couples. So filing at the beginning of the tax season with a lower income may help you qualify for a bigger check. But, if your income went up in tax year 2020, then you may want to delay filing so that eligibility is determined by your lower 2019 income.

You might also want to file early if the size of your family increased in 2020. The new stimulus plan includes a child tax credit that pays up to $3,600 for each qualifying child under 6 years old, and $3,000 for every child between ages 6 and 17. This means that if you became a parent during the tax year, you could get an additional payment by claiming your child as a dependent earlier.

SmartAssets child tax credit calculator will help you figure out how much you could get for each child.

You can use SmartAssets tax return calculator to figure out your 2021 tax refund or tax bill.

A $3600 Tax Credit This Year

Fourth Stimulus check latest update: A fourth and fifth check could ...

Some recipients, however, decided that for whatever reason they didnt need or want the six monthly checks upfront. In that case, theyre getting the child tax credit instead as a lump-sum benefit this year.

As a reminder, for every child under the age of 6, a family could get an expanded child tax credit of as much as $3,600. Meaning, if those families decided to forgo the monthly checks? They can still get that $3,600 this year as a tax credit, never mind that the Senate has still not acted to re-up the monthly payments this year.

The same is true, by the way, if any families eligible for the lower tier of the expanded child tax credit choose a lump-sum benefit this year. They could get up to $3,000, if they, too, decided to forgo the monthly payments last year.

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What Is The Latest Stimulus Check Update

What Is The Latest Stimulus Check Update. The irs may ask for repayment if you fall into one of these 5 categories. There had been widespread talk of another stimulus check in 2022 although it is now looking highly unlikely.

Almost 3million people have signed a change.org petition for monthly $2,000 stimulus checks but lawmakers have all but ruled that out. The stimulus check update will affect americans earning. Almost 3million people have signed a change.org petition for monthly $2,000 stimulus checks but lawmakers have all but ruled that out.

Source: www.youtube.com

Almost 3million people have signed a change.org petition for monthly $2,000 stimulus checks but lawmakers have all but ruled that out. Targeted income limits, however, exclude individual taxpayers earning over $80,000 and joint filers making over $160,000.

Source: www.youtube.com

Which included a provision that gave households the third round of stimulus checks. Targeted income limits, however, exclude individual taxpayers earning over $80,000 and joint filers making over $160,000.

Source: www.youtube.com

The new payment will go out to people who were eligible for the third round of stimulus checks that went out earlier this year, but haven’t. Targeted income limits, however, exclude individual taxpayers earning over $80,000 and joint filers making over $160,000.

Source: www.nj.com

Dems unveil new quarterly payment proposal. These refunds likely include unpaid stimulus funds.

Source: www.youtube.com

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.

  • Florida

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.14

  • Georgia

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.15

  • Michigan

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.16

  • Tennessee

Our very own Tennessee is giving full-time teachers $1,000 and part-time teachers $500 to thank them for their hard work.17

  • Texas

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.18

Also Check: When Are 3rd Stimulus Checks Coming

Should I Take The New Child Tax Credit In Monthly Payments Or Wait For The Lump Sum

The choice is yours here, you guysyou can either get half your payment July through December or you can wait until tax time rolls around and get it all in one lump sum.

If youre feeling super confused about what to do, youre not alone. Our State of Personal Finance research shows that of those who qualify for the Child Tax Credit, only 50%understand this new credit and what it means for their money. Half, you guys!

So, should you go for the monthly payments or just take one lump sum? A lot of it comes down to your family situation and whether there were any big income changes for you. Lets take a look:

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