update stimulus check

The legislation provides a third stimulus check that amounts to $1,400 for a single taxpayer, or $2,800 for a married couple that files jointly. How Households Used the Second Stimulus Check. The CRRSA Act authorized lump-sum economic impact payments of $600 to each eligible adult and. Get the latest updates on the 3rd stimulus check, including stimulus payment Eligible families can now use the IRS' Child Tax Credit Update Portal to.

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Millions of Americans are expected to receive stimulus payments around Christmastime by way of their local state governments. Some states issue their own stimulus checks, and others are even providing universal basic income payments. See if your state is sending a stimulus payment in December, below.

See: The Stimulus Paperwork You Need To Keep for Tax Season
Find: 8 Surprising Facts About Stimulus Checks in 2021

California

California has been sending checks via its Golden State Stimulus II package over the last few months. Governor Gavin Newsom implemented this state stimulus program several months ago by utilizing California’s progressive tax scheme, one which allowed for a state surplus to fund the program. Another check is expected before the end of the year.

Florida

Florida is planning to issue stimulus checks in December to first responders, pre-K-12th-grade teachers and those who meet the financial requirements to receive a one-time payment of $1,000. Governor Ron DeSantis states that 175,000 teachers and 3,6000 principals will be eligible for the check. The state stimulus program for teachers is an attempt at retaining school staff after a particularly hard year for education-sector workers.

Maine

Maine has been sending out stimulus payments via the state government since Nov. 15. The checks, in the amount of $285, have been distributed to over 500,000 people thus far.

Maryland

Maryland is sending stimulus checks to low-income families and individuals. Qualifying families will receive $500 and individuals will receive $300.

Certain cities are also issuing their own forms of stimulus, details of which are provided following.

Stimulus Checks by City

Chicago

Low-income families and individuals in Chicago have been update stimulus check universal basic income payments if they make less than $35,000 a year. Payments have been in the form of $500 checks, and the participants of the program are chosen at random.

District of Columbia

Payments of $500 have been sent out to 100 low-income fathers since September in what is a universal income pilot program.

New Orleans

As part of Louisiana’s financial literacy program, teenagers will be given $350 in monthly payments. The first batch of payments is scheduled to be sent in December, and the program is expected to last for 10 months thereafter. In order to qualify you must be between the ages of 16-24 and be either unemployed or not in school.

Pittsburgh

200 low-earning households in Pittsburgh may receive $500 a month for the next two years. The city is currently considering the idea as part of update stimulus check distribution of COVID relief funds.

Santa Ana

Santa Ana, California, residents will receive an add-on to their Golden State stimulus. The “Revive Santa Ana Resident Stimulus Program” is sending out $6 million to poor neighborhoods in the city. This stimulus will come in the form of $300 payments loaded on prepaid Visa debit cards, and said cards will be sent to 20,000 Santa Ana rental units.

See: Stimulus 2022: You Could Be Eligible for This $2,000 Tax Break
Find: Stimulus Update: Your November Child Tax Credit May Update stimulus check to be Paid Back – Here’s Why

Seattle

Seattle, Washington, has one of the update stimulus check generous state stimulus-type of programs in the country. Low-income residents of the city will be able to claim stimulus checks worth up to $3,000. The deadline for this passed on Nov. 15, but those who qualified had to have been at least 18 years old, and earning less than half of the median income in Seattle. This amounts to $40,500 for individuals and $57,850 for a four-member family.

More From GOBankingRates

This article originally appeared on GOBankingRates.com: Stimulus Update: See What States Are Sending Checks in December

Источник: https://finance.yahoo.com/news/stimulus-see-states-sending-checks-190759786.html

By Arianne Cohen1 minute Read

Will a fourth—or fifth or sixth—stimulus payment appear in your bank account this summer? Despite the swirling rumors, don’t count on more direct payments anytime soon, for the simple reason that Washington is currently immersed elsewhere.

The Biden administration, which spent its first months myopically focused on stabilizing the economy and battling the pandemic, is now looking outward, with a freshly passed bill boosting U.S. competitiveness with China. President Joe Biden is abroad this week (he is currently in Europe), and his stateside efforts are focused on his infrastructure bill, for which talks fell apart yesterday. The sweeping bill would be his legacy, conceptually redefining childcare and social spending as infrastructure. All eyes are now on a group of bipartisan senators who had been preparing a backup plan, while Senate Majority Leader Chuck Schumer strategizes about how to potentially pass a bill with only Democratic support.

Yet a lot of people and a lot of politicians want more stimulus payments. A petition at Change.org for direct payments has more than 2.3 million signatures, and just three weeks ago, seven members of the House Ways and Means Committee sent a letter to the president pushing for are banks open on veterans day observed payments. This brings the number of congresspeople openly supporting  the idea to more than 80. The White House has also remained open to the concept, with press secretary Jen Psaki widely quoted last week saying, “He’s happy to hear from a range of ideas on what would be most effective and what’s most important to the economy moving forward.”

Data also supports further direct payments. A recent University of Michigan study found “sharp declines” in poverty in the months when stimulus payments appeared, thereby preventing the sort of spiraling damage to people’s lives that is difficult to recover from.

So where does this leave us? In politicians’ back pockets. Stimulus payments could easily land in the headlines again when politically beneficial to Democrats. For example, if Biden’s infrastructure efforts go down in flames, another round of stimulus—likely narrower, and targeted at struggling populations—would distract from the embers. Stay tuned.

Источник: https://www.fastcompany.com/90645266/stimulus-update-is-a-4th-stimulus-check-really-coming
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Kate Kozuch is a senior writer at Tom’s Guide covering wearables, TVs and everything smart-home related. When she’s not in cyborg mode, you can find her on an exercise bike or channeling her inner celebrity chef. She and her robot army will rule the world one day, but until then, reach her at [email protected]

Источник: https://www.tomsguide.com/news/fourth-stimulus-check-update-possible-amount-eligibility-and-everything-else-we-know

Third Stimulus Checks: Biden's $1,400 Checks, Explained

The IRS has already sent out more than 156 million third stimulus checks, worth approximately $372 billion. President Joe Biden’s American Rescue Plan pays individual taxpayers earning less than $80,000 a maximum of update stimulus check and couples making under $160,000 up to $2,800. Let’s break down what this means for you – who is eligible for the third stimulus payment, how it is calculated, and how soon you will get it. (Note: This is a developing story, and we will continue to update the article as more information becomes available.)

If you do not have to spend your stimulus check on immediate needs, consider working with a financial advisor to strategize how best to use or invest this money.

When Will I Get My Check and How Can I Track It?

The IRS paid out a fourth batch of third stimulus checks on April 14. This adds up to more than 156 million payments delivered, and totals approximately $372 billion since the third round of checks started going out in mid-March.

Biden had vowed on March 15 to deliver 100 million stimulus checks to taxpayers in 10 days. Millions of Americans started getting the first wave of payments via direct deposit two days after his pledge. And by March 24, approximately 127 million payments worth roughly $325 billion had already been paid out.

The fourth batch of stimulus checks also included “additional ongoing supplemental payments” for taxpayers, which are commonly referred to as “plus-ups.” You could qualify for a new or larger payment if you got a stimulus check in March based on your 2019 tax return and a recently-filed 2020 tax return makes you eligible for more money. The agency says that over one million plus-ups worth more than $2 billion were paid out in this batch.

The status of your payment can be tracked on the IRS’ “Get My Payment” update stimulus check. Additional updates will be posted on the IRS website, along with a fact sheet that answers common questions.

As a reference, the second round of $600 stimulus checks started going out to taxpayers on December 29, 2020, two days after President Trump signed the $900 billion COVID-19 stimulus package into law. Paper checks followed on December 30, 2020, and approximately 8 bank of america mobile prepaid debit cards with stimulus payments were also sent out.

White House press secretary Jen Psaki said at a briefing on March 11 that roughly 90% of the stimulus payments “will go via direct deposit to people’s bank accounts.” While these generally arrive first, you should note that payments could take extra time to process. The IRS has already stated that the COVID-19 pandemic continues to cause delays in some services, including paper and electronic tax returns.

For a comparison, approximately eight million update stimulus check recipients had not yet received payments for the first two rounds of stimulus checks as of January 2021. Biden signed an executive order on January 22 asking the Treasury Department to first premier bank processing fee payment direct payments to all qualifying recipients.

If you collect Social Security retirement, survivor or disability benefits, you could automatically get a third stimulus check via direct deposit as long as you have your bank account on file with the IRS. Other federal beneficiaries, including those receiving Supplemental Security Income (SSI), Railroad Retirement benefits and VA benefits, will also update stimulus check a third payment in the same way.

The agency will mail out letters (Notice 1444-A and Notice 1444-B) to eligible recipients breaking down the amounts of the payments, how they were delivered and how to report them if they were not received. You should keep this letter for your tax records.

If your income is low enough that you usually don’t have to fill out a tax return, or you are a veteran who gets disability compensation, a pension, or survivor benefits from the Department of Veterans Affairs, the IRS has created an online tool for you to submit personal and banking information to get your stimulus payment.

Biden said that the American Rescue Plan will deliver $1,400 stimulus checks to “85% of American households.” On the anniversary of the COVID-19 shutdown, he stated in a speech that “a typical family of four earning about $110,000 will get checks for $5,600.”

The Federal Reserve Bank of New York reported that 32% of households participating in its March 2021 Survey of Consumer Expectations (SCE) said they had already received an average of $3,162 third-round payments.

How Much Does the Third Stimulus Check Pay?

The $1.9 trillion coronavirus relief plan includes a third round of $1,400 stimulus payments, topping off the $600 checks that were already approved by Congress in December 2020, and adding up to $2,000.

Congress passed the coronavirus relief plan with targeted income limits for maximum stimulus payments to individual taxpayers earning under $75,000 and joint filers making up to $150,000. But whereas the first and second rounds of stimulus payments phased out checks on a sliding scale of $5 for every $100 over the income limit, the new plan cuts off high earners at $80,000 for individuals and $160,000 for couples.

Eligibility for the third stimulus checks is based on your tax filing status. For more information on who qualifies for a third stimulus check, our tables below will help you calculate different payment options.

How Is the Third Stimulus Check Calculated?

The stimulus plan mandates the treasury to rely on 2019 and 2020 tax returns to calculate how much you could get for the third round of stimulus checks.

Congress approved limits based on adjusted gross income (AGI) ranges. This means that taxpayers making less than the minimum threshold could get the full stimulus check, while those earning above it get reduced payments until they are fully phased out at higher incomes.

You can find your AGI on IRS form 1040. This is calculated by subtracting deductions like student loan interest, health savings account payments, and contributions to a traditional IRA from your gross income.

By contrast, your gross income is the total amount of money that you made during the tax year, including wages, dividends, capital gains, rental property income and other types of revenue.

Your 2019 taxes had to be filed by July 15, 2020. And your 2020 taxes are due by the extended deadline of May 17. You can read more about when to file your tax returns for the third stimulus check, and other IRS requirements in two tax sections below.

Who Qualifies for the Third Stimulus Check?

Who Could Qualify for the Third Stimulus Check?

Millions of Americans who were eligible for the $600 second stimulus checks could qualify for the third round of stimulus payments up to $1,400. However, many high-earning taxpayers who were eligible for previous stimulus checks are now excluded. The plan narrows income eligibility to exclude individuals earning over $80,000 and couples making over $160,000:

  • Singles phase out at AGIs between $75,000 and $80,000.
  • Heads of household phase out at AGIs between $112,500 and 120,000.
  • Couples phase out at AGIs between $150,000 and $160,000.

Keep in mind that this is different from the sliding scale that was used to determine eligibility for previous stimulus payments. The IRS reduced second stimulus checks by 5% for the total amount made over the AGI limit. This means that payments went down by $5 for every $100 over the limit.

The table below breaks down third stimulus payments based on narrower income ranges for singles and joint tax filers:

$1,400 Stimulus Checks With Narrower Income Ranges
$75,000$1,400$150,000$2,800
$76,000$1,120$152,000$2,240
$77,000$840$154,000$1,680
$78,000$560$156,000$1,120
$79,000$280$158,000$560
$80,000 and up$0$160,000 and up$0

For a comparison, let’s take a look at how much the second stimulus checks paid out for single and joint filers in December 2020. Note that single filers making over $87,000 and joint filers making over $174,000 did not qualify for a second stimulus payment:

Second Stimulus Checks for Single and Joint Filers 
$75,000$600$150,000$1,200
$77,400$480$154,800$960
$79,800$360$159,600$720
$82,200$240$164,400$480
$84,600$120$169,200$240
$87,000 and up$0$174,000 and up$0

If you want to get a specific breakdown, SmartAsset’s third stimulus check calculator will give you an estimate based on your filing status, AGI and dependents.

Are Adult Dependents Getting Third Stimulus Checks?

The new stimulus plan expands eligibility to adult dependents, including college students, elderly relatives and disabled adults.

The text of the plan redefines the term “dependent” according to section 152 of the tax code, which includes both qualifying children and adults: “Section 152(a) provides that the term “dependent” means a “qualifying child” (as defined in josГ© reyes salary section 152(c)) or a “qualifying relative” (as defined in section 152(d)).”

While the plan pays out $1,400 for each qualifying dependent, families should keep in mind that the targeted lower income ranges exclude them if they earn over $160,000.

For reference, the second stimulus checks provided additional $600 payments for qualifying dependents under the age of 17. So a couple filing jointly with three eligible children could get a maximum second payment of $3,000 ($1,200 for married joint filers with an AGI under $150,000, and $600 for each additional qualifying dependent).

Under the first and second rounds of stimulus checks, children and adult dependents over the age limit could not get an additional payment, and they did not qualify for a stimulus check of their own either.

With the new stimulus plan, however, both joint filers and heads of household get an additional $1,400 payment for each dependent, update stimulus check of age. The table below breaks down the third stimulus checks for heads of household with one dependent:

Stimulus Checks for Heads of Household & 1 Dependent
$112,500$2,800
$114,000$2,240
$115,500$1,680
$117,000$1,120
$118,500$560
$120,000 and up$0

Now, let’s compare the second round of stimulus checks with the third round for heads of household with one dependent:

Second vs Third Stimulus for Heads of Household & 1 Dependent 
$112,500$1,200$112,500$2,800
$116,500$1,000$113,750$2,333
$120,500$800$115,000$1,867
$127,500$600$116,250$1,400
$132,500$400$117,500$933
$142,500$200$118,750$467
$146,500 and up$0$120,000 and up$0

This breakdown shows that heads of household earning under $146,500 still qualify for a second stimulus check with an additional payment for one dependent. But under the third stimulus check, only heads of household making less than $120,000 could get a stimulus check with an additional payment for one dependent.

Can Mixed-Status Families Still Get Stimulus Checks?

Could Mixed-Status Families Still Get Third Stimulus Checks?

The new stimulus plan maintains eligibility for mixed-status is grated parmesan cheese bad for you, which include family members with different citizenship or immigration statuses. A common example of a mixed-status family can be made up of undocumented parents and U.S.-born children.

Qualifying couples can get a maximum stimulus payment of $2,800. However, joint returns for mixed-status families with only one valid identification number (this is defined as the Social Security number that is used when filing taxes) only get up to $1,400, and joint returns without valid identification numbers for either spouse are excluded.

The table below calculates payments for mixed-status families with one undocumented partner, using narrower income ranges approved by Congress:

$1,400 Check for Mixed-Status Families With 1 Undocumented Partner
$150,000$1,400
$152,000$1,120
$154,000$840
$156,000$560
$158,000$280
$160,000 and up$0

Because of the targeted income limits, mixed-status families earning over $160,000 do not qualify for a third stimulus check.

Keep in mind that mixed-status families with an active military member at any time during the tax year can get up to $2,800. Their joint AGI has to be under $150,000 for the full payment and will get phased out over $160,000. At least one spouse must have a valid identification number.

For a comparison, if a U.S. citizen and a noncitizen spouse filed their taxes jointly under the March 2020 CARES Act, they were not eligible to claim the first stimulus western security bank online banking. However, when the $900 billion COVID-19 relief package was signed into law in December 2020, joint filers with one undocumented spouse became eligible for the second stimulus check, as well as additional payments for child dependents.

You should note that “nonresident aliens” are not eligible for the third stimulus checks. They were also excluded from the first and second rounds of stimulus checks. Currently, the IRS says that “qualifying resident aliens” with valid Social Security numbers for employment are eligible for stimulus payments as long as they have not been claimed by another taxpayer as a dependent.

Will the IRS Tax My Third Stimulus Check?

How Could a Third Stimulus Check Bill Get Passed into Law?

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 american holidays in order 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.

Qualifying taxpayers who did not get the full amounts of their stimulus payments could claim a recovery rebate credit to increase their tax refund or lower their tax bill. The IRS website also posted additional information for claiming the 2020 recovery rebate credit for eligible recipients who aren’t required to file a tax return.

As an example, if you have to pay $1,600 in taxes this year, and the government still owes you the maximum stimulus payment of $1,800 (that’s $1,200 + $600 for the first and second checks), then you can use your recovery rebate credit to offset your tax bill and get a $200 tax refund.

But, on the other hand, if you’re expecting to get back money from your tax return, then your tax refund could be significantly higher depending on how much you are owed from your stimulus checks.

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 ($2,800 for joint filers earning less than $150,000). 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 update stimulus check 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.

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

With the pandemic, many Americans are looking towards their tax refunds to get an extra boost for their finances. You can check the status of your refund through the IRS website or the IRS2Go mobile app. The agency says that the average tax refund in 2020 was more than $2,500, and it expects over 150 million tax returns to be filed in 2021.

The 2021 tax season began on February 12. You need to file your 2020 taxes by the extended deadline of May 17. Taxpayers filing online and claiming the earned income tax credit (EITC) or the additional child tax credit (ACTC) could get their refund via direct deposit new berlin homes for sale the first week of March.

You can use SmartAsset’s tax return calculator to figure out your 2021 tax refund or tax bill.

How the Third Stimulus Check Became Law

The American Rescue Plan was signed into law on March 11, authorizing a third round of stimulus checks that pay a maximum of $1,400 for millions of Americans. Targeted income limits, however, exclude individuals earning over $80,000 and joint tax filers making more than $160,000.

Biden said at the signing of the bill: “this historic legislation is about rebuilding the backbone of this country and giving people in this nation — working people and middle-class folks, the people who built the country — a fighting chance.  That’s what the essence of it is.”

House Democrats had moved update stimulus check trillion COVID-19 relief bill to Biden’s desk with a 220-211 vote just one day earlier. But progressives in the party expressed concern over Senate amendments that excluded higher-earning taxpayers from getting a stimulus payment.

Biden agreed to narrow income level requirements as a concession to moderate Senate Democrats who wanted to cap payments for individual taxpayers at $80,000 and joint tax filers at $160,000.

The Senate bill narrowly passed with a 50-49 vote on March 6 after an overnight marathon of disputed amendments and negotiations. A 50-50 tie between both parties was avoided because Senator Dan Sullivan (R-AK) could not vote after returning to Alaska for a family funeral.

The House had already approved an earlier draft of the rescue bill on February 27, which excluded individual taxpayers earning over $100,000 and joint filers making over $200,000. Democrats then reunited to pass the amended relief package with narrower income limits from the Senate before a $300 weekly unemployment supplement expires on March 14.

Only Representative Jared Golden (D-ME) broke party lines to vote is grated parmesan cheese bad for you the bill: “Borrowing and spending apple bank for savings login of bank of america corporate travel card visa more in excess of meeting the most urgent needs poses a risk to both our economic recovery and the priorities I would like to work with the Biden Administration to achieve,” he said in a statement on March 10.

How Are Americans Using Stimulus Checks?

The Federal Reserve Bank of New York says that households are spending a smaller percentage of their stimulus checks and saving more. The March 2021 Survey of Consumer Expectations (SCE) shows that households set aside just under 25% of their third-round payments for consumption. This share fell from just over 29% of first-round payments reported in June 2020 and almost 26% of second-round payments reported in January 2021.

The table below is based on all three SCE surveys and breaks down the average percentage of stimulus payments spent, saved and used to pay off debt:

New York Fed SCE Breakdown of Stimulus Check Spending
Average Percentage Spent29.2%25.5%24.7%
Average Percentage Saved36.4%37.1%41.6%
Average Percentage Used to Pay Debt34.5%37.4%33.7%

The New York Fed also says that households expect to spend an average 13% of the third stimulus check on essential items and an average 8% on non-essential items.

For a comparison, preliminary data collected by the U.S. Census Bureau from February 17 through March 1 shows that the majority of stimulus recipients tarrant county food bank almost three times more likely to use checks to pay down debt than add to their savings.

An earlier June 2020 Census study showed that the majority of recipients who got the first stimulus check spent their payment on household expenses. Adults with incomes between $75,000 and $99,999 told the Census that they would most likely pay off debt or add to their savings. While adults making less than $25,000 said they would use their stimulus to pay for expenses.

For those households that spent their first stimulus checks, the study says:

First Stimulus Check Breakdown of Household Spending
80%Food
77.9%Rent, Mortgage and/or utilities (these include gas, electricity, cable, internet and cellphone)
58.2%Household supplies and personal care products
20.5%Clothing
8.1%Household goods (these include TVs, electronics, furniture, appliances and recreational goods like fitness equipment, toys and games)

Other data from the U.S. Bureau of Labor Statistics similarly found that the majority of recipients spent their first stimulus check on essential needs, including food (66%), utilities and internet/phone (50%), household supplies and personal care (47%) and rent (28%). Only 25% of recipients said they would use their first stimulus check to pay down debt and 16% said they would use it to add to their savings or invest.

For additional context, the Bureau of Economic Analysis said that consumer spending had increased $737.7 billion (5.6%) in June 2020. But in December 2020, it had decreased $27.9 billion (0.2%). For a comparison, personal saving was $3.37 trillion in June and the personal saving rate was 19%. But by December, personal saving was $2.38 trillion and the rate was 13.7%. February 2021 showed a $149 billion (1%) decrease in consumer spending, and personal saving was $2.41 trillion with a 13.6% rate.

Bottom Line

Biden signed the American Rescue Plan into law on March 11. Chase college checking international fees passed the $1.9 trillion relief package with a third round of $1,400 stimulus checks, topping off the $600 second stimulus payments and adding up to $2,000 for millions of Americans. Targeted income limits, however, exclude individual taxpayers earning over $80,000 and joint filers making over $160,000. Payments started arriving as early as the weekend of March 13-14.

It’s important to keep up with the latest developments so you can know what type of aid you could qualify for. We will continue to update this article as soon as new information becomes available. You can also find other relief programs at the federal government help center and our list of coronavirus relief programs by state.

Biden has also proposed a $2.3 trillion infrastructure plan that aims to create millions of middle class jobs. And he will unveil the American Families Plan on April 28, which invests in childcare, universal prekindergarten, paid family and medical leave, free community college and other family programs.

Tips for Individuals During the Coronavirus Pandemic

  • If you don’t need to use your stimulus check for anything urgent, update stimulus check investing or saving the money. A financial advisor can help you get started if you need help managing your money or investments. SmartAsset’s free tool can match you with financial advisors in your area in just five minutes. Get started now.
  • If you are struggling to keep up with loan or credit card payments, you can take steps to protect your credit score and speak with your bank directly to see whether you can defer loan payments or waive certain fees.
  • If you can afford it, investing in index funds during a recession is a safe option. But if you’re looking for a slightly more aggressive approach, check out some free investment classes to learn more.

Photo credit: iStock.com/photovs, iStock.com/LPETTET, iStock.com/fizkes, iStock.com/photovs

Источник: https://smartasset.com/insights/coronavirus-third-stimulus-checks
1943169

Update stimulus check -

Seal of the U.S. Department of the Treasury, 1789U.S. Department of the Treasury

Economic Impact Payments

The Treasury Department, the Bureau of the Fiscal Service, and the Internal Revenue Service (IRS) rapidly sent out three rounds of direct relief payments during the COVID-19 crisis, and payments from the third round continue to be disbursed to Americans.


Unemployment Compensation

The American Rescue Plan extended employment assistance, starting in March 2021, and waived some federal taxes on unemployment benefits to assist those who lost work due to the COVID-19 crisis.

Child Tax Credit

The American Rescue Plan increased the Child Tax Credit and expanded its coverage to better assist families who care for children.

EMERGENCY RENTAL ASSISTANCE

The Emergency Rental Assistance program makes funding available to government entities to assist households that are unable to pay rent or utilities.

Источник: https://home.treasury.gov/policy-issues/coronavirus/assistance-for-American-families-and-workers

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 (D-Minnesota), 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.

In May, seven Democrats on the House Ways and Means Committee sent a letter to President Biden requesting that the administration add a fourth and even a fifth stimulus check to the American Families Plan announced earlier this spring.

The White House has said little about a fourth stimulus check. In a press conference in June, White House Press Secretary Jen Psaki said, "The president is certainly open to a range of ideas," when asked about the lawmakers pushing President Biden for more stimulus checks. But that doesn't mean a fourth stimulus check is happening. 

"We'll see what members of Congress propose," Psaki added, "but those [stimulus checks] are not free." 

The most noteworthy economic effort in current legislation is President Biden's $2.25 trillion infrastructure investment proposal, the American Jobs Plan. 

That proposal doesn't include a fourth stimulus check or anything like the direct payments that millions of people received over the course of the pandemic. Rather, it's a long-term initiative to rescue, recover and rebuild the country's financial standing. 

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.

That's not to say another widespread stimulus check can't be written into the next major economic initiative. Although the consensus is that a fourth stimulus check isn't likely, many lawmakers and economists initially questioned the need for a second and third stimulus check too. 

Meanwhile, some people haven't received their third stimulus check due to a “programming error,” detailed in a new Fast Company report. The IRS has admitted instances of payment delays, but hasn't provided specific language on why certain taxpayers are facing issues with their payment.

Be sure to check your stimulus check status or call the IRS stimulus check phone number with questions regarding your payment. Read on for everything there is to know about the possibility of another round of payments.

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.

Fourth stimulus check possible timeline

Right now, there is no fourth stimulus check timeline or fourth stimulus check release date. Until legislation is in motion, we can't say how soon more relief money might arrive. We can't say whether more relief money is coming, at all.

That said, the third stimulus check timeline happened rather quickly following Biden's inauguration Jan. 20. It only took a few weeks for Congress to debate his American Rescue Plan. Once the president signed the bill on March 11, $1,400 checks were put in motion.

The IRS can begin sending out possible fourth stimulus checks in the same manner it sent the previous stimulus payments. Since the framework is already in place, Americans could begin receiving the fourth stimulus checks about two weeks after a relief bill allowing another round of direct payments is approved.

Stimulus check scams and hoaxes

Of course, popular demand for widely distributed stimulus payments, and the confusing political maneuvering that goes into crafting stimulus bills, creates an information gap that's easily exploited by scammers.

Even with the first wave of stimulus checks in 2020, we saw bogus email messages that pretended to be from the IRS, promising "an important update on your Covid relief fund." But they just took you to phishing sites that wanted your Social Security number and other sensitive bits of information. 

Following the second stimulus bill at the beginning of 2021, those email phishing attempts were joined by scam phone calls demanding your personal details so that you could be "cleared" to receive more stimulus checks.

In March, as President Biden's American Rescue Plan was making its way through Congress, new phishing emails promised the moon: a $4,000 stimulus check, a boost in the minimum wage, free meals and, best of all, priority treatment that let you skip lines at COVID-19 vaccination sites.

Most recently, cruel pranksters have been passing around posts on Facebook that a fourth stimulus check worth $2,500 is coming by the end of July. Don't believe it, and don't believe the phishing websites that claim to register you for child-tax-credit advance payments. 

In fact, most parents and legal guardians don't need to do anything to get the payments — they'll just show up in your mailbox or bank account.

Are $2,000 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. 

Plus-up payments

While a fourth stimulus check does not seem likely for now, in the meantime the IRS has released information about plus-up payments and Recovery Rebate Credits, two ways to get additional money from the three stimulus bills passed since the COVID-19 pandemic began. 

Both the plus-up payment and the Recovery Rebate Credit might get you more stimulus money, depending on your 2020 tax return. The plus-up payments, detailed in an IRS news release April 1, are supplements to the third stimulus check. 

If you qualify for a plus-up payment, you will receive an extra check as part of the weekly rounds of stimulus payments that the IRS has been making every Wednesday.

The Recovery Rebate Credit, as explained in an IRS news release April 5, is a tax credit related to the first ($1,200) and second ($600) stimulus checks. If you qualify for the Recovery Rebate Credit, your 2020 taxes will be reduced and you may receive the credit as part of a tax refund. 

Both the plus-up payment and the rebate credit will be determined by your 2020 tax return. But while the plus-up payment will come to you automatically once your return is processed by the IRS, the rebate credit is something you have to claim on your 2020 return. We have more info on both the plus-up payment and Recovery Rebate Credit. 

Fourth stimulus check approval: Here's what it'll take

The White House hasn't responded to any of the proposals for additional stimulus checks, and the general sentiment is that a fourth stimulus check isn't likely. Economists have suggested we've already moved past the pandemic's worst financial woes, although there are signs that Americans could still use relief.

Experts certainly seem in agreement that there won't be a fourth stimulus check. The latest stimulus package, the American Rescue Plan, is "gonna be the last on that front," Deutsche Bank senior U.S. economist Brett Ryan told Fortune. "No more checks."

Ed Mills, Washington policy analyst at Raymond James, agreed, telling CNBC recently "I think it’s unlikely at this time. D.C. has largely started to pivot towards the recovery and an infrastructure bill."

Many economists and financial experts are worried that the third stimulus checks have contributed to a growing inflation rate. In June 2021, the core inflation rate, stripped of energy and food prices, rose 4.5% at an annual rate vs. the Dow Jones estimate of 3.8%. The overall consumer price index rose at an annualized 5.4% rate in June.

Are we getting another stimulus check in 2021?

Whether we get another stimulus check in 2021 depends on how much momentum the proposals for more checks gain. 

There are still some people who've not yet received the third stimulus check, but we've got a handy guide for what to do if you're missing your stimulus check payment. It's worth checking if you're eligible for most recent stimulus check as it's worth up to $1,400 per person. 

The IRS has reported that taxpayers whose direct-deposit information is on file should have seen their payments reach their bank accounts in April. Those who are waiting on paper checks and debit cards can expect to receive their funds in the coming weeks. 

If you have received the third stimulus check and feel it's too low, then take a look at our guide to the stimulus check calculator as that can show you what your own eligibility looks like. Keep in mind that there are a few factors that will affect the amount you are due or have received.

Do people need a fourth stimulus check?

According to CNBC, there is a case for a fourth stimulus check that goes beyond the calls from lawmakers. The Economic Security Project, a progressive organization that advocates for guaranteed income no matter what the state of the economy, says there's a need for more stimulus checks.

“We need at least one more check,” said Adam Ruben. 

Ruben, the campaign director at the Economic Security Project, also said that stimulus checks should be "automatic," and not stalled as they were last summer when second stimulus check negotiations caused a long gap between the $1,200 and $600 payments. 

There are signs of recovery, though. The June jobs report showed a gain of 850,000, which was better than expected, according to The New York Times. That's the strongest one-month gain since last summer.

Likewise, the Commerce Department said that gross domestic product had grown at an annualized rate of 6.5% for April through June of 2021, surpassing the figure it had reached before the pandemic, the Washington Post reported. However, that was less than the 8% GDP growth some economists had forecast.

Regardless, certain lawmakers are pushing for relief. 

“This unprecedented moment demands an unprecedented response. People don’t only need relief, they need stability, certainty, and predictability and the ABC Act delivers them exactly that," said Rep. Pramila Jayapal (D-Washington). 

"Our legislation acknowledges that a one-time survival check isn’t enough to get people through this crisis. Instead, we send out recurring checks every month during the crisis and for a year after it ends. That is money in people’s pockets, and certainty in their lives.”

However, Senate Minority Leader Mitch McConnell, R-Kentucky, didn't appear to agree. 

In an interview, McConnell told 44News of Evansville, Indiana, "This economy is poised to boom. I can't imagine the economy is going to need a fourth round."

California stimulus check

While the possibility of a fourth stimulus check from Congress is not very high, Californians are seeing a fourth stimulus check. As part of Governor Gavin Newsom's $100 billion "California Comeback Plan," the governor is sending $600 checks to those earning less than $75,000, with an additional $500 per child.

Newsom said this represents nearly 11 million California residents, approximately 78% of the state.

Vaccination impact

With the numbers of Americans receiving the Covid-19 vaccine stalled, and numbers of coronavirus cases rising since July, life has returned to a semblance of normality only in some places, not nationwide. 

The Delta variant of Covid has spread quickly, and caused the CDC to change its mask guidance. Now even those who are vaccinated are being told to wear masks indoors in areas of substantial or high transmission. 

Various companies are also requiring that employees be vaccinated before they return to offices, including Google, Facebook, Uber and Netflix. And New York City has taken the extraordinary step of requiring patrons to have at least one shot for those wanting to participate in indoor dining, fitness and entertainment activities. 

As of Sept. 1, 74.2% of adults in the U.S. have received at least one vaccination, according to the CDC, while 61.8% of the total population has had one shot and 52.4% is fully vaccinated. Those numbers haven't changed much since Aug. 15, when they were 71.8%, 59.5% and 50.6%, respectively.

Third Stimulus Checks: Biden's $1,400 Checks, Explained

The IRS has already sent out more than 156 million third stimulus checks, worth approximately $372 billion. President Joe Biden’s American Rescue Plan pays individual taxpayers earning less than $80,000 a maximum of $1,400 and couples making under $160,000 up to $2,800. Let’s break down what this means for you – who is eligible for the third stimulus payment, how it is calculated, and how soon you will get it. (Note: This is a developing story, and we will continue to update the article as more information becomes available.)

If you do not have to spend your stimulus check on immediate needs, consider working with a financial advisor to strategize how best to use or invest this money.

When Will I Get My Check and How Can I Track It?

The IRS paid out a fourth batch of third stimulus checks on April 14. This adds up to more than 156 million payments delivered, and totals approximately $372 billion since the third round of checks started going out in mid-March.

Biden had vowed on March 15 to deliver 100 million stimulus checks to taxpayers in 10 days. Millions of Americans started getting the first wave of payments via direct deposit two days after his pledge. And by March 24, approximately 127 million payments worth roughly $325 billion had already been paid out.

The fourth batch of stimulus checks also included “additional ongoing supplemental payments” for taxpayers, which are commonly referred to as “plus-ups.” You could qualify for a new or larger payment if you got a stimulus check in March based on your 2019 tax return and a recently-filed 2020 tax return makes you eligible for more money. The agency says that over one million plus-ups worth more than $2 billion were paid out in this batch.

The status of your payment can be tracked on the IRS’ “Get My Payment” portal. Additional updates will be posted on the IRS website, along with a fact sheet that answers common questions.

As a reference, the second round of $600 stimulus checks started going out to taxpayers on December 29, 2020, two days after President Trump signed the $900 billion COVID-19 stimulus package into law. Paper checks followed on December 30, 2020, and approximately 8 million prepaid debit cards with stimulus payments were also sent out.

White House press secretary Jen Psaki said at a briefing on March 11 that roughly 90% of the stimulus payments “will go via direct deposit to people’s bank accounts.” While these generally arrive first, you should note that payments could take extra time to process. The IRS has already stated that the COVID-19 pandemic continues to cause delays in some services, including paper and electronic tax returns.

For a comparison, approximately eight million eligible recipients had not yet received payments for the first two rounds of stimulus checks as of January 2021. Biden signed an executive order on January 22 asking the Treasury Department to deliver direct payments to all qualifying recipients.

If you collect Social Security retirement, survivor or disability benefits, you could automatically get a third stimulus check via direct deposit as long as you have your bank account on file with the IRS. Other federal beneficiaries, including those receiving Supplemental Security Income (SSI), Railroad Retirement benefits and VA benefits, will also get a third payment in the same way.

The agency will mail out letters (Notice 1444-A and Notice 1444-B) to eligible recipients breaking down the amounts of the payments, how they were delivered and how to report them if they were not received. You should keep this letter for your tax records.

If your income is low enough that you usually don’t have to fill out a tax return, or you are a veteran who gets disability compensation, a pension, or survivor benefits from the Department of Veterans Affairs, the IRS has created an online tool for you to submit personal and banking information to get your stimulus payment.

Biden said that the American Rescue Plan will deliver $1,400 stimulus checks to “85% of American households.” On the anniversary of the COVID-19 shutdown, he stated in a speech that “a typical family of four earning about $110,000 will get checks for $5,600.”

The Federal Reserve Bank of New York reported that 32% of households participating in its March 2021 Survey of Consumer Expectations (SCE) said they had already received an average of $3,162 third-round payments.

How Much Does the Third Stimulus Check Pay?

The $1.9 trillion coronavirus relief plan includes a third round of $1,400 stimulus payments, topping off the $600 checks that were already approved by Congress in December 2020, and adding up to $2,000.

Congress passed the coronavirus relief plan with targeted income limits for maximum stimulus payments to individual taxpayers earning under $75,000 and joint filers making up to $150,000. But whereas the first and second rounds of stimulus payments phased out checks on a sliding scale of $5 for every $100 over the income limit, the new plan cuts off high earners at $80,000 for individuals and $160,000 for couples.

Eligibility for the third stimulus checks is based on your tax filing status. For more information on who qualifies for a third stimulus check, our tables below will help you calculate different payment options.

How Is the Third Stimulus Check Calculated?

The stimulus plan mandates the treasury to rely on 2019 and 2020 tax returns to calculate how much you could get for the third round of stimulus checks.

Congress approved limits based on adjusted gross income (AGI) ranges. This means that taxpayers making less than the minimum threshold could get the full stimulus check, while those earning above it get reduced payments until they are fully phased out at higher incomes.

You can find your AGI on IRS form 1040. This is calculated by subtracting deductions like student loan interest, health savings account payments, and contributions to a traditional IRA from your gross income.

By contrast, your gross income is the total amount of money that you made during the tax year, including wages, dividends, capital gains, rental property income and other types of revenue.

Your 2019 taxes had to be filed by July 15, 2020. And your 2020 taxes are due by the extended deadline of May 17. You can read more about when to file your tax returns for the third stimulus check, and other IRS requirements in two tax sections below.

Who Qualifies for the Third Stimulus Check?

Who Could Qualify for the Third Stimulus Check?

Millions of Americans who were eligible for the $600 second stimulus checks could qualify for the third round of stimulus payments up to $1,400. However, many high-earning taxpayers who were eligible for previous stimulus checks are now excluded. The plan narrows income eligibility to exclude individuals earning over $80,000 and couples making over $160,000:

  • Singles phase out at AGIs between $75,000 and $80,000.
  • Heads of household phase out at AGIs between $112,500 and 120,000.
  • Couples phase out at AGIs between $150,000 and $160,000.

Keep in mind that this is different from the sliding scale that was used to determine eligibility for previous stimulus payments. The IRS reduced second stimulus checks by 5% for the total amount made over the AGI limit. This means that payments went down by $5 for every $100 over the limit.

The table below breaks down third stimulus payments based on narrower income ranges for singles and joint tax filers:

$1,400 Stimulus Checks With Narrower Income Ranges
$75,000$1,400$150,000$2,800
$76,000$1,120$152,000$2,240
$77,000$840$154,000$1,680
$78,000$560$156,000$1,120
$79,000$280$158,000$560
$80,000 and up$0$160,000 and up$0

For a comparison, let’s take a look at how much the second stimulus checks paid out for single and joint filers in December 2020. Note that single filers making over $87,000 and joint filers making over $174,000 did not qualify for a second stimulus payment:

Second Stimulus Checks for Single and Joint Filers 
$75,000$600$150,000$1,200
$77,400$480$154,800$960
$79,800$360$159,600$720
$82,200$240$164,400$480
$84,600$120$169,200$240
$87,000 and up$0$174,000 and up$0

If you want to get a specific breakdown, SmartAsset’s third stimulus check calculator will give you an estimate based on your filing status, AGI and dependents.

Are Adult Dependents Getting Third Stimulus Checks?

The new stimulus plan expands eligibility to adult dependents, including college students, elderly relatives and disabled adults.

The text of the plan redefines the term “dependent” according to section 152 of the tax code, which includes both qualifying children and adults: “Section 152(a) provides that the term “dependent” means a “qualifying child” (as defined in 2 section 152(c)) or a “qualifying relative” (as defined in section 152(d)).”

While the plan pays out $1,400 for each qualifying dependent, families should keep in mind that the targeted lower income ranges exclude them if they earn over $160,000.

For reference, the second stimulus checks provided additional $600 payments for qualifying dependents under the age of 17. So a couple filing jointly with three eligible children could get a maximum second payment of $3,000 ($1,200 for married joint filers with an AGI under $150,000, and $600 for each additional qualifying dependent).

Under the first and second rounds of stimulus checks, children and adult dependents over the age limit could not get an additional payment, and they did not qualify for a stimulus check of their own either.

With the new stimulus plan, however, both joint filers and heads of household get an additional $1,400 payment for each dependent, regardless of age. The table below breaks down the third stimulus checks for heads of household with one dependent:

Stimulus Checks for Heads of Household & 1 Dependent
$112,500$2,800
$114,000$2,240
$115,500$1,680
$117,000$1,120
$118,500$560
$120,000 and up$0

Now, let’s compare the second round of stimulus checks with the third round for heads of household with one dependent:

Second vs Third Stimulus for Heads of Household & 1 Dependent 
$112,500$1,200$112,500$2,800
$116,500$1,000$113,750$2,333
$120,500$800$115,000$1,867
$127,500$600$116,250$1,400
$132,500$400$117,500$933
$142,500$200$118,750$467
$146,500 and up$0$120,000 and up$0

This breakdown shows that heads of household earning under $146,500 still qualify for a second stimulus check with an additional payment for one dependent. But under the third stimulus check, only heads of household making less than $120,000 could get a stimulus check with an additional payment for one dependent.

Can Mixed-Status Families Still Get Stimulus Checks?

Could Mixed-Status Families Still Get Third Stimulus Checks?

The new stimulus plan maintains eligibility for mixed-status households, which include family members with different citizenship or immigration statuses. A common example of a mixed-status family can be made up of undocumented parents and U.S.-born children.

Qualifying couples can get a maximum stimulus payment of $2,800. However, joint returns for mixed-status families with only one valid identification number (this is defined as the Social Security number that is used when filing taxes) only get up to $1,400, and joint returns without valid identification numbers for either spouse are excluded.

The table below calculates payments for mixed-status families with one undocumented partner, using narrower income ranges approved by Congress:

$1,400 Check for Mixed-Status Families With 1 Undocumented Partner
$150,000$1,400
$152,000$1,120
$154,000$840
$156,000$560
$158,000$280
$160,000 and up$0

Because of the targeted income limits, mixed-status families earning over $160,000 do not qualify for a third stimulus check.

Keep in mind that mixed-status families with an active military member at any time during the tax year can get up to $2,800. Their joint AGI has to be under $150,000 for the full payment and will get phased out over $160,000. At least one spouse must have a valid identification number.

For a comparison, if a U.S. citizen and a noncitizen spouse filed their taxes jointly under the March 2020 CARES Act, they were not eligible to claim the first stimulus check. However, when the $900 billion COVID-19 relief package was signed into law in December 2020, joint filers with one undocumented spouse became eligible for the second stimulus check, as well as additional payments for child dependents.

You should note that “nonresident aliens” are not eligible for the third stimulus checks. They were also excluded from the first and second rounds of stimulus checks. Currently, the IRS says that “qualifying resident aliens” with valid Social Security numbers for employment are eligible for stimulus payments as long as they have not been claimed by another taxpayer as a dependent.

Will the IRS Tax My Third Stimulus Check?

How Could a Third Stimulus Check Bill Get Passed into Law?

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.

Qualifying taxpayers who did not get the full amounts of their stimulus payments could claim a recovery rebate credit to increase their tax refund or lower their tax bill. The IRS website also posted additional information for claiming the 2020 recovery rebate credit for eligible recipients who aren’t required to file a tax return.

As an example, if you have to pay $1,600 in taxes this year, and the government still owes you the maximum stimulus payment of $1,800 (that’s $1,200 + $600 for the first and second checks), then you can use your recovery rebate credit to offset your tax bill and get a $200 tax refund.

But, on the other hand, if you’re expecting to get back money from your tax return, then your tax refund could be significantly higher depending on how much you are owed from your stimulus checks.

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 ($2,800 for joint filers earning less than $150,000). 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.

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

With the pandemic, many Americans are looking towards their tax refunds to get an extra boost for their finances. You can check the status of your refund through the IRS website or the IRS2Go mobile app. The agency says that the average tax refund in 2020 was more than $2,500, and it expects over 150 million tax returns to be filed in 2021.

The 2021 tax season began on February 12. You need to file your 2020 taxes by the extended deadline of May 17. Taxpayers filing online and claiming the earned income tax credit (EITC) or the additional child tax credit (ACTC) could get their refund via direct deposit by the first week of March.

You can use SmartAsset’s tax return calculator to figure out your 2021 tax refund or tax bill.

How the Third Stimulus Check Became Law

The American Rescue Plan was signed into law on March 11, authorizing a third round of stimulus checks that pay a maximum of $1,400 for millions of Americans. Targeted income limits, however, exclude individuals earning over $80,000 and joint tax filers making more than $160,000.

Biden said at the signing of the bill: “this historic legislation is about rebuilding the backbone of this country and giving people in this nation — working people and middle-class folks, the people who built the country — a fighting chance.  That’s what the essence of it is.”

House Democrats had moved the $1.9 trillion COVID-19 relief bill to Biden’s desk with a 220-211 vote just one day earlier. But progressives in the party expressed concern over Senate amendments that excluded higher-earning taxpayers from getting a stimulus payment.

Biden agreed to narrow income level requirements as a concession to moderate Senate Democrats who wanted to cap payments for individual taxpayers at $80,000 and joint tax filers at $160,000.

The Senate bill narrowly passed with a 50-49 vote on March 6 after an overnight marathon of disputed amendments and negotiations. A 50-50 tie between both parties was avoided because Senator Dan Sullivan (R-AK) could not vote after returning to Alaska for a family funeral.

The House had already approved an earlier draft of the rescue bill on February 27, which excluded individual taxpayers earning over $100,000 and joint filers making over $200,000. Democrats then reunited to pass the amended relief package with narrower income limits from the Senate before a $300 weekly unemployment supplement expires on March 14.

Only Representative Jared Golden (D-ME) broke party lines to vote against the bill: “Borrowing and spending hundreds of billions more in excess of meeting the most urgent needs poses a risk to both our economic recovery and the priorities I would like to work with the Biden Administration to achieve,” he said in a statement on March 10.

How Are Americans Using Stimulus Checks?

The Federal Reserve Bank of New York says that households are spending a smaller percentage of their stimulus checks and saving more. The March 2021 Survey of Consumer Expectations (SCE) shows that households set aside just under 25% of their third-round payments for consumption. This share fell from just over 29% of first-round payments reported in June 2020 and almost 26% of second-round payments reported in January 2021.

The table below is based on all three SCE surveys and breaks down the average percentage of stimulus payments spent, saved and used to pay off debt:

New York Fed SCE Breakdown of Stimulus Check Spending
Average Percentage Spent29.2%25.5%24.7%
Average Percentage Saved36.4%37.1%41.6%
Average Percentage Used to Pay Debt34.5%37.4%33.7%

The New York Fed also says that households expect to spend an average 13% of the third stimulus check on essential items and an average 8% on non-essential items.

For a comparison, preliminary data collected by the U.S. Census Bureau from February 17 through March 1 shows that the majority of stimulus recipients are almost three times more likely to use checks to pay down debt than add to their savings.

An earlier June 2020 Census study showed that the majority of recipients who got the first stimulus check spent their payment on household expenses. Adults with incomes between $75,000 and $99,999 told the Census that they would most likely pay off debt or add to their savings. While adults making less than $25,000 said they would use their stimulus to pay for expenses.

For those households that spent their first stimulus checks, the study says:

First Stimulus Check Breakdown of Household Spending
80%Food
77.9%Rent, Mortgage and/or utilities (these include gas, electricity, cable, internet and cellphone)
58.2%Household supplies and personal care products
20.5%Clothing
8.1%Household goods (these include TVs, electronics, furniture, appliances and recreational goods like fitness equipment, toys and games)

Other data from the U.S. Bureau of Labor Statistics similarly found that the majority of recipients spent their first stimulus check on essential needs, including food (66%), utilities and internet/phone (50%), household supplies and personal care (47%) and rent (28%). Only 25% of recipients said they would use their first stimulus check to pay down debt and 16% said they would use it to add to their savings or invest.

For additional context, the Bureau of Economic Analysis said that consumer spending had increased $737.7 billion (5.6%) in June 2020. But in December 2020, it had decreased $27.9 billion (0.2%). For a comparison, personal saving was $3.37 trillion in June and the personal saving rate was 19%. But by December, personal saving was $2.38 trillion and the rate was 13.7%. February 2021 showed a $149 billion (1%) decrease in consumer spending, and personal saving was $2.41 trillion with a 13.6% rate.

Bottom Line

Biden signed the American Rescue Plan into law on March 11. Congress passed the $1.9 trillion relief package with a third round of $1,400 stimulus checks, topping off the $600 second stimulus payments and adding up to $2,000 for millions of Americans. Targeted income limits, however, exclude individual taxpayers earning over $80,000 and joint filers making over $160,000. Payments started arriving as early as the weekend of March 13-14.

It’s important to keep up with the latest developments so you can know what type of aid you could qualify for. We will continue to update this article as soon as new information becomes available. You can also find other relief programs at the federal government help center and our list of coronavirus relief programs by state.

Biden has also proposed a $2.3 trillion infrastructure plan that aims to create millions of middle class jobs. And he will unveil the American Families Plan on April 28, which invests in childcare, universal prekindergarten, paid family and medical leave, free community college and other family programs.

Tips for Individuals During the Coronavirus Pandemic

  • If you don’t need to use your stimulus check for anything urgent, consider investing or saving the money. A financial advisor can help you get started if you need help managing your money or investments. SmartAsset’s free tool can match you with financial advisors in your area in just five minutes. Get started now.
  • If you are struggling to keep up with loan or credit card payments, you can take steps to protect your credit score and speak with your bank directly to see whether you can defer loan payments or waive certain fees.
  • If you can afford it, investing in index funds during a recession is a safe option. But if you’re looking for a slightly more aggressive approach, check out some free investment classes to learn more.

Photo credit: iStock.com/photovs, iStock.com/LPETTET, iStock.com/fizkes, iStock.com/photovs

Источник: https://smartasset.com/insights/coronavirus-third-stimulus-checks

Fourth stimulus check update – $1,400 ‘stimulus’ payment to be sent out as part of American Rescue Plan

SOME Americans could be in line for a stimulus payment worth up to $1,400 next year.

The money will be on top of their tax refund in 2022 thanks to the American Rescue Plan.

Parents who welcomed a new baby in 2021 could be in line to get as much as $1,400 in a stimulus payment

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The package, worth a sizeable $1.9trillion in relief, which was passed in March is designed to give financial relief to those hardest hit by the economic impact of the coronavirus pandemic.

As part of the rescue plan, payments worth up to $1,400 were allocated for eligible inviduals and their dependent children.

Those who qualify and had children in 2021 can claim the Recovery Rebate Credit when they file their next tax return in 2022.

Stimulus checks which were sent out in 2021 are advance payments of the Recovery Rebate Credit.

The stimulus payments in 2021 were based on a person’s tax return in 2020 or 2019 and so if a family had a baby in 2021 they wouldn’t have been included in the payment.

They can though make a claim on their tax return which is filed next year.

Payments, however, won’t go out as a separate check but anyone eligible for the additional payment will receive the credit as part of their 2021 refund.

To qualify as an eligible dependent, they must be under 19 years of age at the end of the year, unless they are a student and then they can be up to 24, or any age and permanently and totally disabled.

To be able to claim the full amount of stimulus money, a taxpayer must have an adjusted gross income under $75,000, or an income of $150,000 and are married and filing jointly.

The eligible dependent could also be in line to receive the Child Tax Credit.

It should be noted that there is no limit to the number of new dependents claimed, meaning that parents who welcomed more than one newborn will be able to receive multiple payments.

There were around 3.6million births in 2020, with the number expected to be fairly similar for this year.

Read our stimulus checks live blog for the latest updates on Covid-19 relief...

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.

Meanwhile, around 803,000 stimulus checks will reach Californians in the next two weeks.

1.7million California stimulus checks are left to be paid out with eligible households receiving between $600 and $1,100 each.

The state plans to issue most payments under the Golden State Stimulus II program by the end of 2021.

Those who qualify and had children in 2021 can claim the Recovery Rebate Credit when they file their next tax return in 2022

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Fourth stimulus check: $300 'hazard' payments to be sent out to some Americans

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Источник: https://www.the-sun.com/money/4205622/fourth-stimulus-check-payment-new-parents/
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4th Stimulus Check Update December 2021 - HUGE NEW - CASH FOR AMERICANS