Saturday, October 1, 2022

When Will We Get Another Stimulus Check

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There Is Little Talk Of More Payments Despite Record Covid

In Brief Episode 16: Will millions of Americans get another stimulus check?

Covid-19 cases in the US are continuing to rise – follow latest news – with never before seen numbers of cases rocking the country. The latest national figure, from January 9, had 313,061 new cases. While this increase, more than 200 percent higher than two weeks ago, is large, it isn’t reflected by a similar increase in deaths. Compared to two weeks ago, 16 percent more people have died. Cases are looking like they are peaking, but reported cases are always lower on weekends, so a fuller picture will be known later in the week.

While the situation was looking especially grim at the turn of the new year, vaccines are continuing to be effective against serious illness. Despite cases being at the worst level of the pandemic, there has been no move in Congress to pass another stimulus check.

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A more pressing concern has been the amount of people needing to be off work while isolating with the disease. This has been a contributing factor in the CDC reducing the recommended time to isolate with the illness. Now, people need only isolate for five days, with no requirement to test negative before returning to work. This has garnered criticism as people are potentially being pushed back into the workplace while they could be infectious to others.

Some New Parents Will Get $1400 In 2022

Parents who had a child in 2021 might have their refunds padded by $1,400 when they do their taxes in 2022. Most people have already received their American Rescue Plan payments in full, according to Newsweek, but those who havent might be able to claim their Economic Impact Payment as the Recovery Rebate Credit.

Provided that they file their tax returns first, parents of children born in 2021 will be eligible for the stimulus check early next year, said Scott McKinney, head of marketing at Debt Bombshell. Like with previous stimulus checks, they would still be required to meet the income eligibility requirements, which means that they need to make no more than $75,000 per year.

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Parents Throughout The United States

Parents with incomes under $150,000 , or $75,000 are the largest group on track to get another stimulus payment.

See, the American Rescue Plan Act — the coronavirus relief passed by President Joe Biden — did more than just provide $1,400 stimulus checks. It also expanded the existing Child Tax Credit and established the monthly distribution of Child Tax Credit payments beginning in July.

The expanded Child Tax Credit, which is currently in effect through the end of 2021, provides parents with a refundable tax credit valued at $3,000 for each child of age 6 through 17. Those with children under age 6 receive an extra $600, for a total of $3,600 per young child.

Half of the total credit amount is being distributed into bank accounts during the months of July, August, September, October, November, and December 2021. Most eligible parents have already received the first five of these payments and are on track to get the last one in December. These monthly payments will deliver half the credit, with the remaining half claimable when filing 2021 tax returns. Democrats are also aiming to extend the expanded credit through 2022 as part of their proposed Build Back Better legislation, so it’s possible that these deposits could continue into next year.

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Will There Be Another Stimulus Check From The Federal Government

Most people agree that getting another big stimulus check from the federal government is a long shot at this point. Still, some lawmakers keep pushing for another stimulus check to help Americans who are struggling to rebuild thanks to COVID-19 and its economic impact. And with the Delta and Omicron variants out therewould another stimulus check happen for everyone? You never know. Only time will tell, really. A lot of people didnt think wed see a third stimulus check eitherbut it happened.

With the economy and jobs both on the upswing, the need for a stimulus check is way less than its been since the start of the pandemic. Not to mention, a lot of people have been getting extra cash each month from the Child Tax Credit. Add all of that up and its easy to see that there might not be another stimulus check. But if there is one, dont worrywell let you know.

Why California Has So Much Money

Will we get another stimulus check?

That brings us to today. Millions of Californians have lost work during the pandemic the states unemployment rate is tied for highest in the nation and a third of households here do not earn enough to meet the true cost of living in this pricey state.

But our state government has been raking in the cash. California has a record $76 billion budget surplus for the current fiscal year, and is projecting $31 billion in excess revenues for the fiscal year that begins in July.

Nationwide, lower-income adults have been hit especially hard by the Covid-19 economic crunch, while wealthier Americans have been left largely unscathed. That trend holds in California, where we also tax our wealthy at very high rates.

What makes the situation unique in California is that we have this inordinate wealth and income inequality, said Chris Hoene, executive director of the California Budget and Policy Center. And then we have a tax structure designed to actually produce revenue from that.

In late 2020, Gov. Gavin Newsom was planning for the fiscal year that would begin in July 2021. Projections showed that the state could soar past the Gann limit by billions of dollars.

Under state law, the governor wasnt required to act on the limit for another two years. But Newsom was facing the prospect of a recall election in the fall.

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More Third Stimulus Payment Money For Some In 2022

Parents who added a child in 2021 could be getting up to $1,400 after they file their 2021 taxes this coming spring thanks to the American Rescue Plan. The money won’t come as a direct check but will be part of the overall tax return.

The 2021 Economic Impact Payment — colloquially known as the third stimulus check — was actually an advance on what is called the 2021 Recovery Rebate Credit. What that means is that the $1,400 stimulus check most individual Americans received in 2021 is, in fact, money they would have gotten after filing their taxes in the spring of 2022 as a Recovery Rebate Credit.

In other words, millions of Americans already got part of their tax refund 12 months early.

“The bottom line is that’s money that’s going out almost immediately to millions of people as a tax credit in advance of putting it on a tax return in the next year,” said Raphael Tulino, IRS spokesman.

However, the IRS was going off of 2019 or 2020 tax returns for its information on the third EIP. It was using that information to determine if taxpayers would get stimulus money for their dependents. If eligible parents had a child born into their family in 2021, they can request the Recovery Rebate Credit on their taxes to get the payment for that child.

It gets more complicated with adoption because all the paperwork and processes to finalize the adoption must be completed first.

This does not pertain to the first or second stimulus payments that were paid in 2020.

Fourth Stimulus Check Update: How To Get Payments Ranging From $1100

A fourth stimulus check may not officially be in the works from the federal government, and additional forms of financial aid due to the COVID-19 Pandemic may be mostly over, but some Americans will still see some form of an influx of cash in the form of stimulus aid during 2022.

Between different programs from states or cities and hold over money from the Expanded Child Tax Credit, some cash is still available and can be received in 2022.

Several cities have signed on to a program to help bring guaranteed income to residents facing economic uncertainty. Among them is Newark, New Jersey, where residents age 18 or older who have been adversely impacted by the pandemic and have an income at or below 200% of the federal poverty line, can receive either $250 bi-weekly payments or $3,000 bi-annual payments to help them. In December, the program was expanded to 400 additional residents of the city. A similar program is launching in Rochester, New York, for 175 families total, who will receive $500 monthly for one year. Spectrum local news reports that Ithaca, New York and Los Angeles also have similar programs in place.

Those who didnt receive the advanced payment could potentially get a full $3,600 credit on their taxes.

Representation. A COVID-19 stimulus check.Photo: Pixabay

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When Would I Get A Third Stimulus Check

Whatever the size, it’s looking like another round of stimulus checks may not land in bank accounts until mid- or late March, based on Schumer’s time frame. The new Senate Majority leader acknowledged “that the next round of fiscal stimulus remains a month to 6 weeks away,” Hammond noted on January 26.

After the relief bill passes Congress, it must be signed by the president. After that, the IRS would distribute funds through direct deposit, mailed checks and prepaid debit cards. If a package is passed by the end of March, people might get their checks starting by early April.

In the first stimulus payments in April 2020, which directed $1,200 to eligible adults as well as $500 per child, it typically took two weeks to several months for payments to reach people. The second round of checks, which sent $600 to each eligible adult and child, required about a week for the funds to arrive via direct deposit.

But in some cases people experienced delays in receiving the money due to problems with their account information. President Biden signed an order on January 22 directing the Treasury to streamline the delivery of stimulus checks for those who have not yet received their direct payments from previous rounds.

How Soon Could The Next Stimulus Check Come

Will we see another $1,200 stimulus check now that election day is over?

Treasury Secretary Mnuchin said checks could come very, very quickly. The first round of stimulus checks went out on April 15th, which was less than three weeks after the CARES Act was approved on March 27th.

Lets assume that a stimulus bill is passed on August 7th, the last day of the next session. If we follow the same timeline as the CARES Act, then stimulus checks could be sent out as early as August 26h.

However, there has been talk that a second round of checks could be sent out more quickly this time around since the IRS already has the process in place. Again, the Treasury will focus on sending out stimulus checks via direct deposit to the extent possible.

If another stimulus bill is passed in August, it is possible that checks could be sent out as early as late August, or possibly early September.

If the next stimulus bill isnt passed until the September session, then the next round of checks may not go out until late September or early October.

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Some Americans Could Get $3600

Finally, some lawmakers hope to make the expanded Child Tax Credit permanent.

While there are problems that could prevent this from happening, if Democrats are successful in getting Build Back Better passed, every eligible parent could be entitled to the same expanded Child Tax Credit they received in 2021.

This could mean they once again receive up to $3,600 for young children and $3,000 for older children. If these payments are delivered monthly beginning in January , this entire amount could come in 2022.

Every American should make sure to find out exactly how much they are entitled to and should make sure they get the full amount of COVID-19 stimulus money to help them through the ongoing challenges that coronavirus continues to present.

Who Will Be Eligible For The Next Stimulus Check

Under the CARES Act, stimulus check eligibility was limited to those with an Adjusted Gross Income of $75,000 or less .

The payment amount decreased for those with an AGI between $75,000 and $99,000 . Those who earned more than $99,000 were not eligible for a stimulus check.

The HEROES Act calls for similar income eligibility limitations. However, it is not likely the HEROES Act will be passed.

The Senate has not officially proposed another stimulus bill at this time, but Senate Majority Leader Mitch McConnell stated this week that they want to target the next stimulus check to those who earned $40,000 or less .

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Some Americans Could Get $1800 In 2022

Those who added a dependent may not be the only ones to get another payment from the government. Many other parents could also be entitled to more funds.

See, the American Rescue Plan Act also temporarily expanded the Child Tax Credit for the 2021 tax year. Prior to 2021, the credit was for a maximum of $2,000 per child and only $1,400 of it was refundable. The credit had to be claimed on your taxes and you’d reduce your tax bill with it or could get up to $1,400 back even if you didn’t have at least $2,000 in tax liability.

The American Rescue Plan Act raised the amount of the credit to $3,600 for children under age 6 and $3,000 for children aged 6 to 17. And it’s now fully refundable. The IRS was also ordered to deliver half of this expanded credit at a rate of $300 or $250 per child deposited into bank accounts from July through December of 2021.

This means half the expanded credit was delivered already for most people. But eligible parents can claim the rest of the credit they are entitled to when they file their 2021 taxes. You could be eligible for a credit worth up to $1,800 per child that reduces your tax bill or that comes in the form of a larger tax refund.

Parents who added a dependent to their family in 2021 may have also missed out on the full $3,600 or $3,000 expanded Child Tax Credit they became entitled to last year. They could receive this money along with their $1,400 stimulus check when filing their returns for the year.

Third Payments Differed From Previous Economic Impact Payments

WILL WE GET A SECOND STIMULUS CHECK?

The third payments differed from the earlier payments in several respects:

  • Income phaseout amounts changed. Payments were reduced for individuals with adjusted gross income of more than $75,000 . The reduced payments end at $80,000 for individuals and $160,000 for married filing jointly. People above these levels did not receive any payment.
  • Payment amounts are different. Most families received $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents received $1,400, while married filers with two dependents received $5,600.
  • Qualifying dependents expanded. Unlike the first two payments, the third payment was not restricted to children under 17. Eligible individuals received a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.

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A $2000 Stimulus Check Petition Is Close To 3 Million Signatures

A Change.org petition that has collected more than 2.9 million signatures calls on Congress to send out a fourth stimulus check of $2,000 for adults and $1,000 for children on a monthly basis for the remainder of the pandemic. The petition notes that “the recovery hasn’t reached many Americans” and points to the need for immediate checks and recurring payments so that “we can keep our heads above water.” While the Change.org petition is close to becoming one of the most popular on its website, whether it will have any effect is another question.

Stimulus Update: Will There Be Another Payment Because Of Omicron Variant

Despite a demand for a fourth stimulus check as the Omicron variant spreads throughout the U.S., it looks unlikely that there will be a fourth stimulus check. AP

The rising case numbers of COVID-19 that have been attributed to the omicron variant have left some wondering if the federal government will distribute a fourth round of direct payments in the form of a stimulus check.

In the past, the imminent or ongoing threat of another wave of COVID-19 led to the government giving out more stimulus checks.

But this time, due to the soaring amounts of inflation we are seeing in the U.S. caused by the massive amount of government money poured into pandemic relief, it seems more unlikely than likely that there will be a fourth stimulus check.

Here is what you need to know.

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Fourth Stimulus Check Update

Biden’s American Rescue Plan Act, which created the third stimulus checks, did boost tax credits for most parents with children under 18, but only for the year 2021. Most parents and legal guardians will receive a tax credit of $3,600 for children under six, and $3,000 per child aged six through 17.

Half of that credit is coming in the form of monthly advance payments to parents beginning July 15 $300 per month for younger kids, and $250 for older ones. That’s similar to the monthly recurring checks that some legislators have called for.

The same law also retroactively exempted a large chunk of unemployment benefits paid out in 2020 from federal income tax. People who collected unemployment in 2020 and paid tax on it are getting thousands of dollars in tax-refund checks.

The American Rescue Plan Act also offers tax credits that cover all or most of the cost of a “Silver” health-insurance plan for six months under the Affordable Care Act, aka Obamacare. You’re eligible for this if you filed for unemployment benefits at any time in 2021, and if you don’t currently get health insurance through Medicare, Medicaid or someone else’s health plan.

Biden’s American Families Plan, which is separate from the American Jobs Plan, will seek to extend those tax credits, including the advance payments, through the end of 2025.

The American Families Plan would also mandate up to 12 weeks of paid parental leave and subsidies for childcare.

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