New Stimulus Money And Last Chance To Get Your Payment This Year
Link: IRS FAQ for America Rescue Plan
The America Rescue Plan passed earlier this year came with an increase in the Child Tax Credit and began making half of those payments in July. These payments have been going out on the 15th of each month since then and will have the last one on December 15.
The amount is $250 per month for children aged 6-17 and $300 per month for children aged under 6 for each month from July December.
New This Month and Important Update!
Link: IRS Portal for Updating Income
The IRS has launched a new portal this month that will allow you to update your income for the Advance Child Tax Credit. If you are making more than you had in 2020, you will want to update it before the final payment to make sure you get the appropriate amount and you do not end up having to pay it back next year.
At the same time, if you are making less than you did in 2020, you can update your income to make sure you receive the proper amount for December. It is too late to do it for November but at least you can make sure that your final Advance Child Tax Credit of the year is correct.
If you have not received anything yet this year and you are eligible, specifically low income families , make sure you sign-up using this link before November 15!
This is important if you have had an income change this year that puts you above or below the amounts below , you should update using the portal above to make sure you get the correct amount next month.
Bottom Line
How Likely Is A Fourth Stimulus Check
Don’t hold your breath, according to Wall Street analysts. “I think it’s unlikely at this time,” Raymond James analyst Ed Mills told CNBC. One reason is that the Biden administration is focused on advancing its infrastructure plan, which would reshape the economy by rebuilding aging schools, roads and airports, as well as investing in projects ranging from affordable housing to broadband.
The proposal, which the White House says would be funded by boosting the corporate tax rate from 21% to 28%, will likely consume lawmakers this fall, said Stifel’s Brian Gardner in an August 11 research note.
“The fall is shaping up to be a busy time in Washington as Congress tries to finish two infrastructure bills , approve the annual spending bills, and raise the debt ceiling,” he noted.
Who Qualifies For The Stimulus Checks
To qualify for the GSII stimulus checks, the following must apply to you:
- Have a California Adjusted Gross Income of $1 to $75,000 for the 2020 tax year
- Have wages of $0 to $75,000 for the 2020 tax year
- Be a California resident for more than half of the 2020 tax year
- Be a California resident on the date payment is issued
Also, keep in mind the checks can’t be claimed as a dependent by another taxpayer.
If you qualify for the check, you’ll typically get it using the refund option you selected on your tax return.
Most direct deposit payments were issued between September 1 and October 31, but if you filed your tax return after September 1, expect to wait 45 days.
Meanwhile, paper checks go out depending on the last three digits of the ZIP code on your tax return.
You can view the paper check mailing schedule in our guide.
In total, an estimated $12billion will be issued with the hope of offering financial relief to residents financially hit by the coronavirus crisis.
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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.
Whats In The Houses Reconciliation Bill So Far
From the Education and Labor Committee
Transportation and Infrastructure
- Disaster relief: The bill has in it $50 billion for reimbursing state, local, tribal, and territorial governments for their Covid-19 response expenses, including vaccinations, PPE, National Guard deployment, and disinfecting public facilities.
- Public transit and transportation: The bill directs $30 billion to public transit, which nationally has seen a huge drop in ridership during the pandemic:$8 billion to airports, $3 billion to aerospace manufacturing for temporary payroll support, and $1.5 billion to Amtrak for payrolls and restoring daily long-distance service. It also puts $3 billion toward the Economic Development Administration, which provides grants to economically distressed communities, meant to help respond to economic harm done by the pandemic.
Ways and Means
Small Business
Energy and Commerce
Financial Services
Agriculture
Veterans Affairs
Oversight
State and local government funding has been a major sticking point for Republicans, and if Democrats are able to pass this through reconciliation, they can bypass GOP opposition.
- Emergency leave for federal and postal workers: The bill directs $570 million in emergency paid leave for federal employees and postal workers.
- Oversight money: The bill puts $117 million toward oversight entities namely, the Government Accountability Office and the Pandemic Response and Accountability Committee to oversee pandemic relief funds.
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Florida Michigan Tennessee And Georgia Are Giving $1000 To Teachers
Florida will be distributing stimulus payments in December for first responders and educators who work with students. Teachers and principals are eligible for payments of up to $1,000.
Georgia has implemented a similar policy, giving teachers and principals $1,000 in stimulus cash for their work during the pandemic.
Michigan is giving $1,000 bonuses to every full-time child care professional as part of its Child Care Stabilization Grant. Licensed child care providers are eligible to apply and should visit Michigan.gov/childcare to apply. Child care professionals will be awarded bonuses directly from their employer and do not need to apply.
Tennessee will be doling out $1,000 of hazard pay bonus to full-time teachers and $500 to part-time educators. They should expected to receive their checks before Jan. 1. The hazard pay came at the cost of an expected 2% raise that educators had been expecting in a bill passed in June.
Local Government Finance And Grant Programs
American Rescue Plan Coronavirus State and Local Fiscal Recovery FundAmerican Rescue Plan Elementary and Secondary School Emergency Relief Coronavirus Relief Fund Funding for Non-Budgeted Costs Related to COVID-19 COVID-19 Testing and Vaccination DistributionEmergency Broadband Benefit ProgramElementary and Secondary School Emergency Relief Fund
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Two Trillion Dollars Heres Where All That Coronavirus Stimulus Is Going
. Four hundred Dallas Cowboys franchises. A thousand Wembley Stadiums.
Yes, its hard to wrap your brain around how much money $2 trillion really is.
Thats where cost-estimating website HowMuch.net comes in. President Trump last week signed a $2 trillion bill to boost the economy during the coronavirus shutdown. The headline number for many was the $1,200 check that will give a lifeline for a big chunk of the population.
But theres so much more going on here.
Its hard to imagine just how much money is at stake, much less where its going and who is going to benefit, HowMuch.net editor Juan Carlos Sanchez wrote, referring to this detailed chart:
As you can see, individuals receive the biggest boost from this sweeping package, with about $560 billion going directly in to their pockets as cash payments or additional unemployment benefits. The big companies get $500 billion, with $58 billion to help the crushed airline sector.
A Big Steroid Shot For The Economy
No doubt the bill which the House is expected to pass this week provides another big steroid shot to the economy. It would allow the U.S. to add about 6 million jobs this year, compared to 2.5 million without any legislation, according to Moodys Analytics. The 6.3% unemployment rate would tumble to 4.8% by year-end under the Biden plan, while virtually flatlining with no aid.
Bidens blueprint would power economic growth to 6.5% this year the best rate since 1984 versus 4% without it, Barclays economist Jonathan Millar estimates. Morgan Stanley predicts economic output next year will top what it would have been if the pandemic hadnt occurred in a remarkable outcome.
But does that underscore that the package may be too big?
The spending comes on top of about $4 trillion in COVID-19 relief since last year. If the $1.9 trillion package is approved, total pandemic relief would amount to about one-quarter of the U.S. economy, significantly more than the 10% or less of gross domestic product by other countries, Moodys says.
Fed’s view of economy:Central bank has no plans to raise interest rates or reduce bond purchases
Federal stimulus during the Great Recession of 2007-09 totaled well under 10% of GDP. Biden has acknowledged the $787 billion stimulus during that downturn fell short, leading to a sluggish recovery and spurring his determination to push through a larger package this time.
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Money Would Go To Fight The Pandemic And To Help States Local Governments And Schools
The bill would provide funding for vaccine distribution as well as coronavirus testing, contact tracing and genomic sequencing. It would give money to the Federal Emergency Management Agency as well.
It would provide $350 billion for states, local governments, territories and tribal governments, and it contains about $130 billion for schools. It also includes funding for colleges and universities, transit agencies, housing aid, child care providers and food assistance.
In addition, the bill contains funding to help businesses, including restaurants and live venues, and it includes a bailout for multiemployer pension plans that are financially troubled.
No Economic Recovery For Others
The pandemic has further highlighted the growing imbalance across the broader economy. While many households have financially flourished during COVID, many others have fallen behind where they were in early 2020. Much of the gap depends on whether wage earners could work remotely during the shutdown or had public-facing jobs that required them to be on-site.
Financial insecurity is still widespread, and the loss of a job and the loss of hours were some of the main reasons over the course of the pandemic. Nine percent of American adults reported a shortage of food in their household over the previous week, according to a Center on Budget and Policy Priorities analysis of U.S. Census survey data from late September and early October. Approximately 16 percent of renters have fallen behind on their rent, including 23 percent of renters with children in their household. The federal eviction moratorium, which ended October 3, didnt forgive rent that was owed, it pushed the debt into the future. And evictions continued in some parts of the country regardless. Meanwhile, only a fraction of the $46 billion Congress allocated for rental assistance has actually made it to tenants and landlords. As of late September, over a quarter of American adults reported some difficulty keeping up with expenses in the prior week.
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Th Stimulus Check Update: The States Still Giving Out Stimulus Checks
Alaska, Arkansas, California, Colorado, Florida, Georgia, Florida, Kentucky, Mississippi or West Virginia… is your state on the ? Stimulus checks and other forms of aid seek to help ease the damage caused by COVID-19 and our in-depth guide below displays what is available in each state.
- Child Tax Credit update.Next payment coming on November 15
Low and medium-income families across the United States have been receiving financial help over the past year thanks to various stimulus checks, which the federal government launched to help those struggling as a result of the economic turmoil brought about by COVID-19. Those federal payments have stopped, but various states across the USA are organising their own stimulus checks and payouts to help their residents.
It’s not only through stimulus checks that states are providing welcome relief to families up and down the nation, as some are also helping out through extended benefits programs, child tax credit support and other tax breaks.
Below, we outline the situation in all 50 of the US states. Thanks to this comprehensive guide, you’ll be able to quickly see where stimulus checks are being prepared and how much money is being given out. We also explain how to qualify for these fourth stimulus checks. So, look for your state to see what benefits and stimulus payments are available where you live in .
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 its 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.
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What Other Aid Is Out There
While a fourth stimulus check is improbable, more direct payments to Americans have already been signed into law. Up until Labor Day, the jobless received extended unemployment benefits. The American Rescue Plan also includes an advance Child Tax Credit.
Under the revised Child Tax Credit, the Internal Revenue Service is paying out $3,600 per year for each child up to five years old and $3,000 per year for each child ages six through 17. Monthly payments of up to $300 per child started July 15 and will continue through December of 2021. The remainder is to be issued when the recipient files their 2021 taxes. The benefit does not depend on the recipients current tax burden. In other words, qualifying families will receive the full amount, regardless of how much or little they owe in taxes. Payments start to phase out beyond a $75,000 annual income for individuals and beyond $150,000 for married couples. The more generous credit will apply only for 2021, though Biden has stated his interest in extending it through 2025.
The ARP added $21.6 billion to the Emergency Rental Assistance Program, which is being distributed to state and local governments, who then assist households. Most of the $46 billion total has yet to reach tenants and landlords.
The Child Tax Credit Would Become More Generous Among Other Benefits
For 2021, the bill would temporarily expand the child tax credit, which is currently worth up to $2,000 per child under 17.Under the legislation, the tax credit would be as much as $3,600 for children up to age 5and as much as $3,000 for children 6 to 17.
The bill would make the full value of the credit available to low-income people who are currently ineligible or receive only a portion. And for the second half of this year, it would have the federal government send advance payments of the credit to Americans in periodic installments, akin to a guaranteed income for families with children.
The legislation would also expand the child and dependent care tax credit for 2021, and it would expand the earned-income tax credit for workers without children for this year as well. Through 2025, it would exempt student loan forgiveness from income taxes.
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Economic Recovery For Some
READ MORE:
Relief payments were intended to ease COVIDs economic impact and support the economy in the process. The third round of relief payments started back in March, courtesy of the American Rescue Plan . Over the following months, about 169 million people received up to $1,400 each. That accounted for nearly all of the $422 billion set aside. The ARP checks closely followed the $600 payments from January, which came nine months after the $1,200 payments from the pandemics early days. They seem to have worked, but have also helped many who didnt actually need the money.
In the third quarter of 2021, the U.S. economy grew at an annualized rate of 2.0 percent, according to the most recent estimate from the Bureau of Economic Analysis. Thats a major slowdown from the torrid pace in the second quarter, which saw 6.7 percent growth. The Conference Board forecasts continued though slower growth through the rest of the year. The countrys gross domestic product , an estimate of economic activity across the U.S., has surpassed pre-pandemic levels. By that general measure, the economy has fully recovered.
Consumer spending remains strong, with the rate up 1.7 percent in October, as compared to a 0.8 percent rise in September. Auto sales also show signs of returning, as production increases to fill the need. The increase, in general, is a positive sign for whats ahead in the holiday shopping season. Overall, goods spending remains above pre-pandemic levels.