People Who Live In California May See Another Stimulus Check Coming Their Way Soon
While the debate over whether or not to send an additional round of aid payments is still going on at the federal level, one state is already making moves to send its citizens another stimulus check in the coming months. After first proposing the plan in May, California Gov. Gavin Newsom signed legislation on July 17 that would see more cash relief payments sent out to state residents.
Under the plan, Californians who qualify will receive a “Golden State Stimulus check” for $600, while families with children will see an additional $500, Yahoo Finance reports. To be eligible, you must have made no more than $75,000 as per your most recent tax filing and have lived in California for at least half of the tax year. According to Newsom’s office, this covers roughly two-thirds of the state’s population.
Child Tax Credit: July 15 Deposits
Some families received another form of stimulus aid on July 15 when the IRS deposited the first of six monthly cash payments into bank accounts of parents who qualify for the Child Tax Credit . Families on average received $423 in their first CTC payment, according to an analysis of Census data from the left-leaning advocacy group Economic Security Project.
Eligible families will receive up to $1,800 in cash through December, with the money parceled out in equal installments over the six months from July through December. The aid is due to the expanded CTC, which is part of President Joe Biden’s American Rescue Plan.
Families who qualify will receive $300 per month for each child under 6 and $250 for children between 6 to 17 years old. Several families that spoke to CBS MoneyWatch said the extra money would go toward child care, back-to-school supplies and other essentials.
Families may enjoy more of a tax break in coming years, if Mr. Biden’s American Families Plan moves forward. Under that plan, the Child Tax Credit’s expansion would last through 2025, giving families an additional four years of bigger tax breaks for children.
Dont Wait For A 4th Stimulus Check To Take Control Of Your Money
Getting your hands on some extra cash when youre in a tough spot can feel like a breath of fresh air, but dont depend on a stimulus as your money plan. Weve said it before and well say it again and again dont wait around for the government to take care of you. Its never a good bet.
And truth be told, youll be waiting around for a long time. Sure, a fourth stimulus check can help you out, but it isnt going to be your lifeline. If you really want to take control of your money, you need a proven plan that you are in charge of.
Sooner or later, stimulus checks run out. But knowing how to budget, save, and make your money goals happen is something that keeps on giving. And we know just the thing to get you there. The premium version of our budgeting app EveryDollar, and Financial Peace University are the trusted tools you need to build habits that keep you on track with your money goals. Get your money working for you and start creating the life you wantwithout waiting on the government.
About the author
Ramsey Solutions has been committed to helping people regain control of their money, build wealth, grow their leadership skills, and enhance their lives through personal development since 1992. Millions of people have used our financial advice through 22 books published by Ramsey Press, as well as two syndicated radio shows and 10 podcasts, which have over 17 million weekly listeners.
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When Will The New Stimulus Payments/checks Be Made
The IRS will be responsible for making these stimulus payment checks and Treasury Secretary Mnuchin, whose department oversees the IRS, said that payments go out within a week of the bill being formally approved. This means payments could hit bank accounts before the end of the year. Payments would be made in multiple batches and if all goes according to plan the first round of payments would begin on 12/28 . Processing will go until January 15th for Direct Deposit payments. Checks and Debit Cards will take until the end of January 2020 to get processed. See more on the IRS Stimulus Check Payment Schedule.
The inclusion of the one-time stimulus payment however has also meant a cut in extra unemployment benefits that are also part of the overall package. More to come as the bill gets finalized and I will post updates. See this $600 stimulus update video for a quick summary as well.
Stimulus Update: Heres Who Will Get A Payment In 2022
Although the federal government is not issuing an official fourth stimulus check for everybody, there is one group of people eligible for additional relief money. AP
But even though the federal government is not issuing an official fourth stimulus check for everybody, there is one group of people eligible for additional relief money: parents who gave birth to a child in 2021.
Here is what to know about this select group of people eligible for the money in 2022.
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Will Ssi Recipients Get A Fourth Stimulus Check In 2022
The supplemental security income program provides financial support to retirees and disabled people with limited income. For many recipients, its important to make ends meet.
Giant grocery store chains force high food prices onto American families while rewarding executives & investors with lavish bonuses and stock buybacks. I’m demanding they answer for putting corporate profits over consumers and workers during the pandemic.
Amid rising product prices and higher Medicare premiums, seniors and disabled people may experience serious financial difficulties. Moreover, while the 2022 COLA is intended to absorb the inflation shock for retirees, many may find themselves in a higher tax bracket because of the adjustment. As a result, there have been calls for additional financial assistance for seniors and SSI recipients.
The Senior Citizens League, an advocacy group , has called for a $1,400 stimulus payment for recipients of social security benefits. There’s also a push for a fourth stimulus check for the broader population.
For example, an online petition that has received almost 3 million signatures is calling for a monthly relief payment of $2,000 for every American adult and $1,000 for every child through the end of the pandemic. Bill Gates has suggested the pandemic could be over in 2022 if the right steps are taken to combat it, such as broadening access to vaccines.
When Do They Vote On The Third Stimulus Check
The House of Representatives passed the American Rescue Plan Saturday morning by a 219-212 vote, hours after going through the House Rules Committee. The bill will now be sent over to the Senate for consideration, but the timeline for passage there remains in some question.
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, plus $1,400 per dependent. Individuals earning up to $75,000 would get the full amount as would married couples with incomes up to $150,000.
The size of the check would shrink for those making slightly more with a hard cut-off at $100,000 for individuals and $200,000 for married couples.
Some Republicans want to cut the size of the rebate as well as the pool of Americans eligible for it, but Biden has insisted on $1,400 checks, saying thats what the American people were promised. The new round of checks will cost the government an estimated $422 billion.
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Are You Entitled To A $1400 Check In 2022
The American Rescue Plan Act authorized payments of $1,400 per adult and $1,400 per dependent. President Joe Biden signed the Act into law at the end of March and the vast majority of Americans have already received the full amount of stimulus money due.
However, people who had a baby or otherwise added a new dependent may not have received all the money that they were supposed to get this year. The problem is, the IRS determined how many dependents were entitled to the $1,400 payments by reviewing past tax returns. And if you added a dependent only in 2021, then this information would not have been available to the IRS when your payment was calculated.
If you missed out on a payment for any new dependents you added in 2021, you can claim $1,400 per dependent in 2022. So, for example, if you added twin babies to your family this year, you would be entitled to $2,800 for them. You’ll simply have to claim the money by filing a tax return. The payments that were sent out were an advance on a tax credit, so the tax credit should be available to you when you file your 1040 form with the IRS for 2021.
The IRS will begin accepting tax returns in late January of 2022, so the sooner you file your return for 2021, the faster you can get the $1,400 payment that you’re owed.
Omicrons Effect On Employment
Employment has been impacted by the Omicron variety. However, some small companies have closed their doors voluntarily after workers and some customers become infected with covid-19. Even significant business sector institutions and lobbying organizations, such as the US Chamber of Commerce and the Business Roundtable, have stayed silent on the stimulus plan.
However, the White House is discussing how funding from the American Rescue Plan should be used in collaboration with states to assist struggling firms, employees, and families using government services. The Center for a Responsible Federal Budget states that almost 86 percent of the $5.7 trillion economic stimulus money has been spent or pledged .
Economists such as Jerome Powell have expressed worry about the impact of novel coronavirus subtypes on the economy and its recovery. He also noted a rise in inflation uncertainty and the likelihood of a labor market slowdown impacting the supply chain.
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Th Stimulus Check Eligibility
There have been several newborns and these newparents who lately had a child or adopted one or acquired a dependent are certainly eligible. They are likely to receive almost $1400 worth of stimulus money in 2022 which is similar to the 3rd stimulus payment given during March 2020.
Recent parents must update the IRS regarding their newborns or new dependents while they file the tax returns for 2021 in the coming year. They will be considered eligible to receive stimulus relief payments for their children.
Couples with an annual income of less than $150,000 and single parents making less than $75,000 each year will also be considered eligible recipients for the entire 4th stimulus check payment.
Few states including Connecticut and California have also announced about offering their own stimulus money, tax credit relief, or unemployment benefits.
Most local state governments have also started their own programs for stimulus funds for qualified citizens in 2022.
Los Angeles announced the BIG LEAP program under Guaranteed Basic Income funds for 3000 eligible people who will receive a monthly payment of $1000 for 1 year.
Chicago will randomly select 5000 households and give $500 each month for 1 year.
These stimulus checks are intended to help financially unstable people in the US.
Congress Calls For Manchin Clarity
Some members of Congress have argued that the White House should identify exactly what West Virginia Senator Joe Manchin would be willing to support and pass those aspects.
On the other hand progressive members point to the fact that many of the measures formed part of the Democratic party platform which got them elected in 2020.
They worry that if legislatiion is not enacted, it could hamper their electoral chances in the Mid-Terms.
Child Or Dependent Qualification For The $500 Payment
Several readers have asked questions around the $500 child dependent additional stimulus payment. To get this payment you must have filed a 2018 or 2019 tax return and claimed the child as dependent ANDthe child must be younger than 17-years-old at the end of 2020. They must also be related to you by blood, marriage, or adoption . There is no limit to the number of dependents who can qualify for the additional $500 in one household.
This age limit is much younger than what is used by the IRS in the qualifying child test where a child must be younger than 19 years old or be a student younger than 24 years old as of the end of the calendar year. Hence the confusion being caused by this. So just remember if your child or eligible dependent is 17 or over you cannot claim the stimulus payment for them.
College Kids and High School Seniors
The younger than 17 yr old requirement has ruled out several thousand college students and high school kids who are older than 17, but still being claimed as a dependent by their parents on their federal tax return.
However if you are a college student AND filed a recent tax return you can qualify for a standard/adult stimulus check per the above eligibility rules. But note as soon as you file a return you cannot be claimed as a dependent by others, which means they lose certain other tax benefits and credits.
How Likely Is A Fourth Stimulus Check
Don’t hold your breath, according to Wall Street analysts.
For one, the Biden administration has focused on infrastructure spending to spark economic growth, betting that an investment in roads, trains and other direct investments will help get people back to work and spur the ongoing recovery.
Secondly, economists have pointed fingers at relief efforts such as the three rounds of stimulus checks for contributing to inflation. Because Americans had cash in their pockets, they boosted spending on goods such as furniture, cars and electronics. Combine that with the supply-chain crunch, and the result was sharply higher inflation, according to economists.
Without new stimulus efforts on the horizon, it’s likely that inflation could moderate in 2022, according to Brad McMillan, the chief investment officer at Commonwealth Financial Network. “One cause of inflation has been an explosion of demand driven by federal stimulus,” he noted in a December report. “But that stimulus has now ended.”
He added, “Yes, we will continue to face inflation and supply problems, but they are moderating and will keep doing so.”
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Residents Of Certain States
Eligible residents of specific states could also be on track for another payment in December. Maine, California, Maryland, and Florida are all planning on sending money to some people next month.
- Maine will be distributing $285 payments to half-a-million households, including eligible individuals with an adjusted gross income below $75,000 for single tax filers and $150,000 for married joint filers. These payments started going out on Nov. 15 and will continue into December.
- California is sending payments valued at $500 to $1,100 under the Golden State Stimulus II Program. These payments could be available for eligible individuals with incomes under $75,000 who were residents of the state for more than half of 2020 and who are still residents at the time the payment is issued.
- Florida will be distributing stimulus payments in December for first responders and educators who work with students in Pre-K through 12th grade. Around 175,000 teachers and 3,600 principals are eligible for payments of up to $1,000.
If you live in one of these states, you should check the specific eligibility rules for your location to see if you are one of the many Americans who will be getting additional stimulus funds during the last month of 2021.
Useful Information & Links:
– Why is Senator Manchin against the Build Back Better bill?
– 2022 tax season could yield a stimulus check for new parents
Deferred Social Security tax payment due 3 January
Employers and self-employed individuals who chose to defer paying part of their 2020 Social Security tax obligation have until tomorrow, 3 January 2022 to make any outstanding payments. The IRS has reminded those affected that they are still required to make the payment on time, even if they did not receive a bill.
As part of the Covid relief provided during 2020, employers and self-employed people could choose to put off paying the employer’s share of their eligible Social Security tax liability . Half of that deferral is now due on 3 January 2022, and the other half on January 3, 2023.
Employers and individuals can make the deferral payments through the Electronic Federal Tax Payment System or by credit or debit card, money order or with a check. To be sure these payments are credited properly, they must be made .
Individual taxpayers can also use the Direct Pay tool which is available only on IRS.gov. Select the “balance due” reason for payment. If paying with a debit or credit card, select “installment agreement.” Apply the payment to the 2020 tax year where the payment was deferred.
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Heres Who Can Expect More Stimulus Payments
As background, the federal government is still giving select workers stimulus payments, and states have used some of their federal relief to provide teachers bonuses, with some issuing stimulus checks to state residents who meet income requirements.
But another group eligible for stimulus payments might surprise you: babies born in 2021. The newest Americans qualify for payments up to $1,400 from the third round of federal stimulus checks that millions of people received in March. To qualify for the full amount, your household must meet income requirements: $150,000 for married people who file a joint return or $75,000 for individuals.
Eligible new parents who inform the IRS they had a baby or babies when they file their 2021 taxes next year will still receive a stimulus check for those children.
Plus, people with 2021 newborns might not realize that theyre eligible for the expanded child tax credit thats part of the governments COVID stimulus package.
You could have opted to inform the IRS this year about your new family member to get the early monthly tax credit installments that the agency paid in 2021. If you didnt, youll get the full $3,600 credit when you file your next tax return in 2022 and claim the baby as a dependent for the first time.