How We Got Here
To begin, a brief history: Californians revolted against taxes in the late 1970s.
Voters passed Proposition 13, a landmark measure that limited property tax increases, in 1978. The next year, Paul Gann, one of the propositions co-sponsors, suggested another tax break.
Gann proposed implementing a cap on state spending: If Californias expenditures neared a certain threshold , the state would have to return funds to taxpayers in the form of a rebate.
Voters in 1979 overwhelmingly approved the measure, known as the Gann limit, and later amended the law to allow some of the excess revenue to also go toward funding education.
Are $2000 Monthly Stimulus Checks Possible
In response to President Biden’s American Jobs Plan proposal, a group of 21 senators on March 30 sent a letter urging the inclusion of stimulus checks in the legislation. The group called for recurring payments as long as the pandemic lockdown continued, meaning people would get monthly checks from the government. No amount for the payments was specified.
We urge you to include recurring direct payments and automatic unemployment insurance extensions tied to economic conditions in your Build Back Better long-term economic plan, wrote the group, which consisted of Sen. Elizabeth Warren, D-Massachusetts, Sen. Bernie Sanders, I-Vermont, and others.
An earlier stimulus check proposal, put forward during the early days of the American Rescue Plan in late January, also suggested monthly payments until the pandemic is over, but did not mention an amount. However, Rep. Ilhan Omar, D-Minnesota, tweeted earlier in January that she wanted to see $2,000 per month.
If that amount sounds familiar, it’s because now-Vice President Kamala Harris threw her support behind $2,000 recurring checks during the negotiations for the second stimulus check legislation in the summer of 2020.
The proposal has also gained plenty of support outside of Congress: Six online petitions calling for $2,000 monthly stimulus checks until the end of the pandemic have been posted. The biggest petition, on Change.org, has been signed by more than 2.8 million people and has a stated goal of reaching 3 million.
Im On Social Security And Havent Gotten My Payment Yet Why
The first batch of payments to Social Security recipientsmore than 19 million payments made to beneficiaries who didnt file 2019 or 2020 tax returns and did not use the non-filers tool last yearwent out on April 7.
Payments were delayed while Social Security and the IRS worked out the details of transferring beneficiary data to the IRS, which is handling payment processing.
If you used the non-filers tool to get a stimulus payment in 2020, your payment may have already been issued.
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Why Is There A Third Stimulus Package
Despite nearly constant discussion of stimulus checks throughout the pandemic, Congress and the Trump administration only agreed on two. The first, offering $1,200 checks to adults with an additional $500 for children, was enacted in March of 2020 via the CARES Act. The second check provided $600 for adults and another $600 for children and was authorized by the omnibus appropriations and stimulus bill enacted at the end of December.
Nearly all Democrats and even some Republicans thought the December legislation was inadequate in size and scope . Meanwhile, the pandemics winter surge reached frightening new levels, vaccine distribution needs a major boost, and the economy, as reflected in the and jobs reports, is looking anemic.
Joe Biden made it clear since before the election that he would favor a new and expanded stimulus package upon taking office. Since there was significant bipartisan support for making that second check $2,000 instead of $600, the new Biden administration decided to plus up the direct payments with a third $1,400 check.
Is There Anything I Need To Do To Get A Check
As Voxs Fabiola Cineas and Ella Nilsen explained after Congress passed its previous round of direct payments, most people dont need to do anything to get a stimulus check. If you filed taxes in 2019 or 2020, meet the eligibility requirements, and included your direct deposit information, the payment should show up in your account in the coming weeks.
If your direct deposit information isnt on file with the IRS yet, you can still provide those details using IRSs Get My Payment tool before the latest wave of payments starts going out.
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Tax Refunds Could Give You Money
Other federal money that could offer relief to some Americans is the IRS tax refunds. The IRS was forced to delay the 2020 tax returns due to COVID-19. This year, however, the agency is unlikely to delay the tax filing deadline.
For most filers, the last day to file a 2021 tax return is April 18, 2022. Some filers can apply for a six-month extension, but they need to apply for the extension before April 18 to avoid any fines.
If you file the return online, you can check the status of your return after just 24 hours. You can use the IRS2Go app or Where’s My Refund or IRS.gov, to check the status of your refund. In case you file your return by mail, then you have to wait for about four weeks to get an update on your tax return status.
Unemployment benefits are another aid that may be available to some workers. Though the federal unemployment benefits ended in September 2021, workers could still claim the unemployment benefits that their states usually offer.
Similarly, federal stimulus checks may have ended but people may still get stimulus checks from their state governments. Several state and local governments have come up with different ways to offer relief to their citizens, such as Californiaâs Golden State Stimulus program.
A $3600 Tax Credit This Year
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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Who Qualifies For The Third Stimulus Payments
Generally, if youre a U.S. citizen and not a dependent of another taxpayer, you qualify for the full third stimulus payment. In addition, your adjusted gross income cant exceed:
- $150,000 for married filing jointly
- $112,500 for heads of household
- $75,000 for single filers
A partial payment may be available if your income exceeds the thresholds. However, you will not receive any payment if your AGI is at least:
- $160,000 for married filing jointly
- $120,000 for heads of household
- $80,000 for single filers
The full amount of the third stimulus payment is $1,400 per person and an additional $1,400 for each qualifying dependent.
Can My Recovery Rebate Credit Be Garnished
The first and second rounds of stimulus checks authorized in March 2020 and December 2020 were protected from federal and state debt offsets, and even private debt collectors in some cases.
Unfortunately, the same protections don’t apply when these payments are claimed as the Recovery Rebate Credit on your 2020 return. Remember, you can only claim the credit if you’re missing a stimulus check you qualify for, or you received too little based on your 2020 income and tax situation.
Your stimulus tax credit can be used to offset state or federal debts, like past-due child support . Your credit cannot be used to offset federal taxes you owe for prior years, according to guidance .
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How To Claim Your Missing Third Stimulus Payment On Your 2021 Tax Return
After Dec. 31, you will need to request any missing third stimulus payments on your 2021 tax return by claiming the Recovery Rebate Tax Credit. This is the case if you received a partial amount or didnt previously qualify for the third stimulus payment.
Lets say you are single and your income for the 2020 and 2019 tax years exceeds the threshold . However, you lost your job in 2021, so your income drastically decreased. You can now claim the Recovery Rebate Tax Credit since your earnings have fallen below the threshold.
You need to complete the Recovery Rebate Tax Credit worksheet and submit it along with your 2021 tax return. If youre using a tax software program, it should guide you through the process.
Before completing the worksheet, you must know the amount of any third stimulus payments received for you, your spouse, and any dependents. The worksheet will also request your adjusted gross income for the year to determine your eligibility.
If youre unsure of the amount of your third stimulus payment, you should review your IRS online account or use the Get My Payment app. You can also refer to your Notice 1444-C, a letter sent by the IRS to recipients, which shows the third stimulus payment amount for 2021.
In Jan. 2022, the IRS will mail Letter 6475 confirming the total amount of the third stimulus payments received for the 2021 tax year.
After you determine your correct recovery rebate credit amount, you will need to report it on line 30 of your 2021 tax return.
If Your Third Stimulus Amount Is Less Than Expected
The IRS isn’t particularly big on communicating how much money it calculates for your stimulus check. You won’t find that figure in the agency’s online tracking tool, but you will see it in the confirmation letter you’ll receive in the mail.
So what happens if you use our stimulus check calculator and notice the numbers seem way off, or the IRS letter quotes an amount you didn’t receive? Start by triple-checking your qualifications to make sure you’re eligible for the total you expect. Remember the IRS is automatically sending plus-up payments after the agency receives your 2020 tax return. If you had a baby or otherwise added a dependent in 2020, you won’t need to file an amended tax form to claim the supplement.
The IRS could open up claims for missing stimulus money before its Dec. 31 deadline to stop sending checks. If not, you might have to wait until you file your 2021 taxes in 2022 to claim it — even if you’re a nonfiler who isn’t typically required to file taxes.
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Back Taxes Child Support And Other Debts
Question: Can the IRS or other creditors take my third stimulus check if I owe back taxes, child support or other debts?
Answer: Your third stimulus check is not subject to reduction or offset to pay child support, federal taxes, state income taxes, debts owed to federal agencies, or unemployment compensation debts.
However, the American Rescue Plan doesn’t include additional protections that were included in the legislation authorizing the second round of stimulus checks. For example, second-round stimulus checks weren’t subject to garnishment by creditors or debt collectors. They couldn’t be lost in bankruptcy proceedings, either. The IRS also had to encode direct deposit payments so that banks knew they couldn’t be garnished.
Question: Can a dead person get a third stimulus check?
Answer: For the third round of stimulus checks, anyone who died before January 1, 2021, is not eligible to receive a payment. Essentially, they’re treated as if they don’t have a Social Security number.
There is an exception for military personnel. If a person who died before 2021 was married and a member of the U.S. military, the surviving spouse can still receive a third stimulus check even if he or she doesn’t have a Social Security number.
The extra $1,400 per dependent is also off the table if the parent died before 2021 or, in the case of a joint return, both parents died before then.
Question: Will I receive a notice from the IRS about my payment?
Stimulus Update: Here’s Who’s Getting A Check In December
by Christy Bieber | Published on Nov. 23, 2021
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Will The Stimulus Affect My Taxes For This Year Or Next Year
None of the three stimulus checks are considered income, and therefore arent taxable. They wont reduce your refund or increase what you owe when you file your taxes this year, or next. They also wont affect your eligibility for any federal government assistance or benefits.
Remember, with TurboTax, we’ll ask you simple questions about your life and help you fill out all the right tax forms. With TurboTax you can be confident your taxes are done right, from simple to complex tax returns, no matter what your situation.
College Students And Young Adults Living At Home
Question: Will college students and young adults who live with their parents get a third stimulus check?
Answer: Anyone claimed as a dependent on someone else’s tax return won’t receive a third stimulus check. That means no payments to children living at home who are 17 or 18 years old, or to college students who are 23 or younger at the end of the year who don’t pay at least half of their own expenses.
However, unlike with the first- and second-round payments, the person claiming the college student or young adults as a dependent typically their parents will get an extra $1,400 per dependent tacked on to their third stimulus check. For the first two stimulus checks, the additional amount was only allowed for dependent children 16 years old or younger. But the American Rescue Plan allows the extra payment for any dependents regardless of their age.
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A Fourth Round Of Checks Could Do More Harm Than Good
Its also not lost on policymakers that the highest rate of inflation in 40 years came immediately on the heels of the last round of checks and more disposable income could turn up the heat even more.
Injecting more federal stimulus into the economy could stoke the flames of inflation even further, Adams said. With people having more income available, consumer demand might pick up and exacerbate an already stressed supply chain.
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Fourth Stimulus Check Amount
The fourth stimulus check amount depends on several factors. If passed, it would probably look similar to the previous checks, although that’s not guaranteed.
For reference, the first stimulus check amounted to as much as $1,200, while the second stimulus check brought $600 to eligible Americans. The third stimulus check, which the IRS is still in the process of distributing, is worth up to $1,400 per person, although the eligibility requirements are narrower.
All three checks gave the full amounts to taxpayers who made up to $75,000 a year, according to their most recent tax returns. Couples filing jointly got the full payment if they had a joint total income of $150,000 or less.
With the first two checks, those making up to $99,000 alone or $198,000 as a couple received prorated payments. With the third check, individuals who earned more than $80,000 per year or $160,000 per year as joint filers got nothing. Our guide to the stimulus check calculator can show you what your own eligibility looks like.
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Third Stimulus Check: Potential Timeline For $1400 Direct Payments
WASHINGTON Since January, Americans have been anxiously waiting for the $1,400 stimulus checks President Joe Biden announced as part of his $1.9 trillion COVID relief plan. The House first passed its version of the American Rescue Plan on February 27. The Senate has now passed a different version of the bill, but both contain the direct payments. Now, the House has to take up the bill again before it is signed into law.
In both versions of the bill, individual tax filers making up to $75,000 per year will get $1,400. Couples making up to $150,000 will get $2,800. There will also be $1,400 tacked on for each dependent in the household.
In the House version that was passed, the money paid out phases to zero at $100,000 income for individuals and $200,000 for couples. But in the Senate version, it phased out at $80,000 and $160,000, respectively.
Because of those changes and other amendments in the Senate version of the bill, the plan goes back to the House. Representatives must vote on the Senate version or the two chambers may hold a conference to come to some middle ground.Roughly 8 million fewer households will get a check under the Senate bill compared with what the House passed, according to an analysis from the Tax Policy Center.