Saturday, October 1, 2022

Will Seniors Get A Second Stimulus Check

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Seniors Need New Check Because Of Inflation League Says

What seniors need to know about stimulus checks

Retirees need a fourth stimulus check because they’re being squeezed by steeper prices for gasoline, food, used cars and many other things, the Senior Citizens League says. Some seniors indicate they’ve been skipping meals and doses of essential medication to meet expenses.

“Soaring inflation has taken a toll on household finances of retired and disabled Social Security recipients,” reads the petition, on the group’s website.

Over the past few months, U.S. consumer prices have been up more than 5% versus last year a level of inflation not seen since 2008. The truly eye-popping increases have been at the gas pump: In August, gasoline cost 42.7% more than a year ago, the government says.

A forecast from the Senior Citizens League says inflation could push next year’s Social Security raise to 6.2%, which would be the largest boost in nearly four decades. But it could be too little, too late.

How Do I Get Help Filing A 2020 Tax Return To Claim My Eip

The IRS recommends electronic filing, and we agree. It is a faster, more secure option. Paper forms will take much longer to be processed by IRS. You may qualify for free e-file software.

You can also call the Vermont 2-1-1 hotline and follow the menu options for tax preparation. Through this service you may be able to schedule an appointment with a free Volunteer Income Tax Preparation Assistance site. These sites are staffed by trained volunteers. They provide free preparation services to taxpayers who meet eligibility requirements.

Also, you can find Form 1040 and Form 1040 instructions on the IRS website. The instructions for the “Recovery Rebate Credit” are found on pages 57 – 59.

Student Loan Payback Suspended

Borrowers with student loans held by the Department of Education originally had suspended payments through September 30, 2020. President Trump subsequently extended that relief to December 31 through executive action. If Congress does not act by the end of the year millions of student loan borrowers will start getting billed in January for their student loans for the first time in nearly a year.

Also Check: What Does The Stimulus Bill Include

Ssi Or Ssdi Beneficiaries: Are You Eligible For The Third Stimulus Check

If you’re over age 65 and a recipient of Supplemental Security Income or Social Security Disability Insurance, you were eligible for a first and second stimulus check, and will be eligible for a third. This also includes many VA recipients and Retired Railroad Workers.

Social Security recipients are now getting their stimulus checks, the IRS said, but those receiving VA benefits may have a few weeks to go.

If you count as someone else’s dependent, you may be eligible for stimulus money in the potential third round of checks.

Biden Is Proposing An Extra $200 Bump

How a Second Round of Stimulus May Benefit Seniors

Wall Street rebounds from last weeks rout, with Dow up more than 350 points as investors anticipate a Biden presidency that will produce a more robust stimulus.

John Lundin

According to CNBC, Biden has said he plans to increase Social Security payments by $200 per month, which would affect retirees as well as veterans and Supplemental Security Income recipients.

The additional benefit was first proposed by two Democratic senators, Oregons Ron Wyden and Massachusetts Elizabeth Warren. In their , the two wrote, We are pushing to include in Congress next stimulus package a $200 increase in the monthly benefit for all Social Security, Veterans, and Supplemental Security Income beneficiaries through the end of 2021. The two estimated that such a supplement would add $4,000 in the pockets of seniors and people with disabilities who have earned this benefit by contributing to Social Security with every paycheck and improve the lives of millions of Americans and help our economy stabilize and recover.

The senators also noted that many retired seniors rely wholly on those payments for income and that beneficiaries have received a supplemental payment in times of economic strife before in the wake of the 2008 economic crisis, the 2009 American Recovery and Reinvestment Act provided Social Security, SSI and other benefit recipients such as veterans with a one-time payment of $250.

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Democrats In Congress Are Pushing For A Fourth Stimulus Check

Democrats in the House and the Senate are pushing for another round of stimulus payments for Americans still reeling financially during the pandemic.

Some Democratic lawmakers are also urging Biden to extend unemployment benefits and a child tax credit payment program, in addition to recurring stimulus payments. In March, Congress extended a weekly $300 unemployment payment until early September.

“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,” 21 senators wrote in a letter to Biden in late March.

Inflation Could Send Social Security Soaring

Steeper prices for gas, food, cars and countless other things are squeezing Americans, especially older ones with fixed, often modest incomes.

The league says seniors have been skipping meals and doses of essential medication.

Consumer prices spiked this summer at rates not seen since 2008. But as inflation rises, so will Social Security benefits.

Advocates predict next years cost of living adjustment, or COLA, could be as high as 6.2% the largest boost in nearly four decades. For the average retiree who got a monthly check of approximately $1,543 this year, a 6.2% rise would increase that payment by $96, to $1,639, in 2022.

For 55 million retirees, that would mean bigger benefit checks every month.

Also Check: Will People On Disability Get A Second Stimulus Check

When Will I Get The Payment And What Can I Do If I Dont Get It

The IRS is sending the third round of payments out to American families, but we are not sure how long this will take. We believe the IRS will continue to send the third round of payments until December 2021. Because this third round of stimulus is actually an advance payment of a tax credit for tax year 2021, you should be able to claim this credit on your 2021 tax return if you do not get it by the end of 2021.

When Will You Get A Second Stimulus Check

Stimulus checks | Many local seniors still waiting for payments

While Congress has stalled on a stimulus package, that doesntmean you wont get a second stimulus payment. Congress largely agrees on a second round of stimulus payments, although there are four main plans for a second stimulus check. The breakdown centers around other provisions in the Heals Act, which is the $1 trillion stimulus package Republicans proposed. Democrats, led by Senate Minority Leader Chuck Schumer and Speaker of the House Nancy Pelosi want a stimulus package of at least $2 trillion, although Republicans have rejected this amount. Congress could, however, approve stimulus payments as standalone legislation.

Before the impasse, Congress agreed in principle to $1,200 stimulus checks on the same terms as the Cares Act, the $2.2 trillion stimulus package that included the first round of checks. While Congress did not finalize the amount of dependent payments, Congress did agree in principle on waiving the age cap so that dependents of any age including high school students, college students and adult dependents could qualify for dependent payments. Congress can still approve a stimulus package, including with stimulus payments. However, now with Trumps executive orders, many of the key issues appear to have been addressed. In addition to stimulus payments, Congress also would focus on state and local aid, including funds to reopen schools, as well as potential liability protection for schools and businesses.

Also Check: Irs Wheres My Stimulus Payment

Who Qualifies For The Third Round Of Economic Stimulus Checks For $1400

The full $1,400 2021 stimulus is available for single taxpayers who earn less than $75,000 per year. There are income caps for single taxpayers who file U.S. taxes as head of household that cap is $112,500.

Those who file their taxes as married earners who bring in $150,000 per year or less also qualify. Those who exceed these caps by a modest amount may qualify for a partial stimulus payment. But there are cutoffs, as well examine below.

3rd Recovery Rebate Amounts:

  • A maximum $1,400 for individual tax filers
  • A maximum $2,800 for couples who make up to $160,000
  • Individuals who earn above $75,000 and couples above $150,000 are not eligible for the stimulus
  • An additional $1,400 per each child.

The 3rd Stimulus Checks Phase-out at:

  • $75,000 in adjusted gross income for singles.
  • $112,500 for heads of household.
  • $150,000 for married couples .
  • Payment is reduced by five percent or $5 of every dollar above that mark, or $50 for every $1,000 above $75,000.
  • Completely phase out at $87,000 for singles and $174,000 for couples .

What If My Bank Account Information Changed How Will I Get My Second Stimulus Check

Unfortunately, if your second stimulus check is sent to an account that is closed or no longer active, the IRS will not reissue the payment to you by mail. Instead, if you are eligible to get a payment, you can claim the stimulus check on your 2020 tax return as the Recovery Rebate Credit or use GetCTC.org if you dont have a filing requirement.

Also Check: Irs.org Stimulus Check Status

Turbotax Has The Stimulus Updates

TurboTax is working hard to keep its customers updated with stimulus payments. The TurboTax Website includes the latest information on COVID-19 tax guidance, as well as how stimulus payments work and what you need to know in advance of the 2021 tax filing season.

Taxpayers who have questions can contact a TurboTax Live CPA through a one-way video chat. These experts have an average of 12 years worth of experience between them. Furthermore, they are available throughout the entire year and can offer support in both English and Spanish.

If you do not want the hassle, you can also purchase the TurboTax Live Full Service, and a TurboTax expert will handle everything on your behalf.

Make sure you check out the IRS and TurboTax website for the latest information on how Federal coronavirus relief applies to your tax situation.

Senior Stimulus Checks Have A Precedent

600 Stimulus Check When Will We Get It

The idea of stimulus checks directed only toward retirees isn’t a new one the U.S. did that a dozen years ago, in the midst of the Great Recession.

The economy was in what the Federal Reserve says was its longest downturn since World War II, one that lasted from December 2007 to June 2009. Home prices crashed 30%, stocks dropped 57%, and unemployment rose from 5% to 10% during the extended crisis.

In hopes of containing the damage, President George W. Bush signed the Economic Stimulus Act of 2008 in February of that year. It included stimulus checks of up to $600 each for most taxpayers, with Social Security beneficiaries receiving at least $300.

But it was in May of 2009 that the U.S. paid out relief similar to what the Senior Citizens League is pushing for now: a stimulus check that went primarily to people on Social Security. They got $250 payments under President Barack Obama’s Recovery Act other taxpayers simply had less tax money withheld from their pay.

Read Also: How To Find Out When Stimulus Is Coming

What To Do While You Wait On Washington

While the seniors advocacy group boasts more than a million supporters, the petition for a $1,400 stimulus check may go unheeded.

A different petition for a fourth round of stimulus checks has nearly three million signatures Congress and the White House have yet to budge.

For now, here are some actions you can take on your own to protect your wallet.

  • Deal with your debt. Credit cards have helped many households get through the last year, but the expensive interest will only make life harder going forward. Folding your balances into a single debt consolidation loan can cut the cost of your debt and help you pay it off faster.

  • Never overpay while shopping online. How do you know whether youre getting the best deal when theres thousands of stores online? Save yourself the trouble of comparing prices by that will automatically scour for lower prices and coupons.

  • Reduce your housing costs with a refi. Still paying down your home loan? With 30-year mortgage rates comfortably below 3%, you could be missing out on significant savings if you haven’t refinanced recently. Nearly half the homeowners who refinanced over the last year are saving $300 or more per month, according to a recent Zillow survey.

  • Turn your small change into a diverse portfolio. Even if you don’t have much money, you can still earn returns from todays red-hot stock market. A popular app can help you invest your “spare change” from everyday purchases.

Who Does Not Qualify For A Third Stimulus

There are also income caps that serve as disqualifications. These caps are applicable for those who meet any of the following criteria:

  • $80,000 for single earners
  • $120,000 head of household earners
  • $160,000 for married earners

There are also income caps that serve as disqualifications. These caps are applicable for those who meet any of the following criteria:

  • $80,000 for single earners
  • $120,000 head of household earners
  • $160,000 for married earners

Individuals earning between $80,000 and $100,000, and couples earning between $160,000 and $200,000, are newly excluded from a partial check.

Those who owe taxes to the IRS may receive no stimulus check at all, or a reduced check. Its also possible that you could fail to receive a check if you owe child supportthe stimulus money may have been garnished.

Some sources warn that IRS errors can also result in you not getting your checkits smart to call the IRS to inquire about the status of your check if you feel it has not arrived in error. You can also use a tracker tool at the IRS official site to check the status of your stimulus.

Under the provisions of the third stimulus bill, stimulus payments to American taxpayers are not considered income by the Internal Revenue Service. You may need to consult with a tax professional in order to determine what tax implications are present for this current years federal and state tax reporting requirements are related to pandemic assistance.

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Fourth Stimulus Check: Are More Payments Coming

A fourth stimulus check from the government could take one of two forms: monthly checks in fairly small amounts, or one-time payments of up to $2,000.

Both options have been put forward by legislators in Congress as follow-ups to the third round of pandemic relief payments, which were made possible by the American Rescue Plan Act of March 2021.

The U.S. economy is still recovering, with slow but steady job growth even as unemployment numbers hold steady and the Delta variant of COVID-19 causes hospitalization rates to soar.

The federal moratorium on evictions ended Aug. 26 with a Supreme Court ruling, and millions now face losing their homes. Inflation, however, appears to be on the rise, contributing to fears among economists and lawmakers that further stimulus payments could only fuel more price hikes.

As a result, there’s no legislation in Congress that’s likely to pass that would create a fourth round of stimulus payments, even though some Democratic lawmakers have called on President Joe Biden to consider recurring payments.

The White House has passed back the buck, stating that the president would consider whatever Congress comes up with.

At the end of July, Rep. Ilhan Omar , introduced a bill that would send $1,200 to each American making less than $75,000 per year, forever. But it has not moved forward in the House of Representatives and has little chance of passing.

Still Living Paycheck To Paycheck

Don’t Waste Your Money: What about a second stimulus check?

While the stimulus checks and now-expired Child Tax Credit provided direct aid to families, “most federal aid programs miss the mark, and only reach a fraction of the intended recipients,” noted Greg Nasif, political director of Humanity Forward.

He added, “They barely functioned even before the pandemic and they leave parents with a full-time job navigating bureaucratic hurdles.” In his view, providing “speedy, efficient, direct cash support” is the best option for helping struggling families.

Many people never applied for unemployment benefits because they didn’t think they were eligible, while others may have given up due to long waits and other issues.

Even those who qualified for aid didn’t always receive it. Only 4 in 10 jobless workers actually received unemployment aid, according to a from economist Eliza Forsythe.

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Can Seniors Expect A Second Round Of Stimulus Checks

No matter where you fall on the political spectrum, we think its fair to say the timeline weve been living in this past month has been bizarre, to say the very least.

In many ways, with regards to the pandemic, we arent very far from where we were in the spring. The virus still has a choke-hold on the public. Though most places have tried to return to some kind of normalcy while still maintaining health precautions, we are still dealing with ups and downs in infection numbers and the uncertainty it brings.

In the past weeks, we were reminded in a huge way that we continue to live in a volatile environment. Over 30 government officials, including the President, First Lady, and several key White House staffers contracted Coronavirus, demonstrating two pretty devastating realities: COVID is alive and well and it has an all-access pass.

Those revelations teamed up with the usual election year market instability to cause a Dow plunge of several hundred points, adding pressure to an economy thats struggling to recover the 22 million jobs that were lost earlier this year.

All this amounts to a pressing need for second round stimulus legislation. Most Americans are wondering whenand iftheyll see a second stimulus payment before the end of the year.

Trying to follow the timeline of events lately is like trying to do a math problem after being spun in a swivel chair a few dozen times.

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