The US is in the throes of another wave of covid-19 infections with case numbers surpassing all previous peaks. In the past this led to the federal government stepping up to help Americans left struggling in the disruption the pandemic has wrought on livelihoods and household finances. However, this time despite workers out sick or quarantining no new federal stimulus checks look set to be sent out.
In a recent press release the Internal Revenue Service put out its annual report highlighting the efforts of its employees in 2021. One of the accomplishments touted by the agency has been successfully delivering “more than $1.5 trillion to people across the nation through Economic Impact Payments, tax refunds and advance Child Tax Credit payments.” Here's a look at the three Economic Impact Payments, better known as stimulus checks.
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First round of economic stimulus checks: April 2020
The CAREs Act included a provision for a round of stimulus payments – eligible tax-paying adults received a check of up to $1,200 while eligible dependents under 16 years of age received $500 each (a maximum of three dependents could be claimed for).
The payments were made to everyone earning under the income limits, which were set at Adjusted Gross Income of $75,000 ($150,000 for married couples filing jointly) with the stimulus check value reducing in a tapered fashion up to a maximum of $99,000 ($198,000 for married couples filing jointly). The very first stimulus checks were paid into people's bank accounts over the weekend of the 11 and 12 of April, either via direct deposit into individuals’ bank accounts, paper checks sent through the post or in some cases, through a prepaid debit card, the Economic Impact Payment (EIP) Card which were sent out in late May/early June last year.
Second round of direct payments: December 2020-January 2021
The second round of aid, a $900 billion package which was part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 was signed off by Trump on 27 December 2020. It provided a one-off check of up to $600, but this time, households were also able to claim an additional $600 for child dependents aged 16 or under. Those who earned under $75,000 in the 2019 tax year received the full stimulus check, while a steadily smaller figure was given to those on a higher annual income, up to a maximum phase-out limit of $87,000. The first payments, through direct deposit and paper checks with some later payments made by EIP 2 Cards, were issued between 29 December 2020 and 15 January 2021.
Those who didn’t receive a stimulus payment either through the CARES Act or the December Covid-19 Relief bill were able to claim for it retroactively when they filed their federal tax returns for 2020 through the IRS Recovery Rebate Credit.
Third round of stimulus checks: March 2021
Barely a week after the second round of stimulus payments were completed, new president Joe Biden entered office and immediately unveiled his American Rescue Plan, which proposed a third of round of payments to Americans, including some of those who might have missed out on the first two rounds.
On Thursday 11 March, Biden signed his $1.9tn American Rescue Plan into law. The third payment provided eligible individual taxpayers for a check of up to $1,400, while couples filing jointly could receive a maximum of $2,800. In addition, families with dependents were eligible for an extra payment of $1,400 per dependent, regardless of the dependent's age – this time, there was no limit to the number of dependents that could be claimed for.
The first stimulus payments were issued swiftly - just hours after Biden has signed the bill, the first batch of 164 million payments, with a total value of approximately $386 billion, arrived by direct deposit in individual’s bank accounts. Some received their payments on the weekend of 13/14 March 2021. Since then, payments had been sent on a weekly basis including "plus-up" payments until the end of the year. Like before, those who didn't get all the EPI3 funds in 2021 due to them will be able to claim them when they file their tax returns in the spring of 2022.
What next?
Discussions for a fourth stimulus check have all but disappeared in the halls of Congress. The unemployment rate continues to fall as the US continues its economic recovery from the covid-19 pandemic. There is no chance of another stimulus check.
How Big Will My Stimulus Check Be? The CARES Act paid up to $1,200 for each qualifying person, but the new COVID relief package will pay half that – up to $600 for qualifying individuals. House Democrats voted on December 28 to raise the second stimulus payment up to $2,000, which President Trump has also demanded.
More than 476 million payments totaling $814 billion in financial relief went to households impacted by the pandemic. The Internal Revenue Service (IRS) based the amounts that individuals received on income, tax filing status, and number of children (or qualifying dependents, like a relative).
How much is the third Economic Impact Payment? Those eligible will automatically receive an Economic Impact Payment of up to $1,400 for individuals or $2,800 for married couples, plus $1,400 for each dependent.
Individuals with AGI of $75,000 or less qualify to get the full $600 second stimulus check. Individuals making more than $75,000 and up to $87,000 receive a reduced amount.
If you did not receive the 3rd stimulus check, you can get it by filing a 2021 tax return and use the recovery rebate credit in Federal Review. The stimulus amount will show up on line 30 of the Form 1040.
(NewsNation) — The IRS provided Economic Impact Payments, more commonly called stimulus checks, three times during the COVID-19 pandemic. Those who didn't receive checks (or received the wrong amount) can still claim them before the deadline.
To claim your first, second, or third stimulus checks, visit GetYourRefund.org which opens January 31, 2024. If you didn't get your first, second, or third stimulus check, don't worry — you can still claim the payments as a tax credit and get the money as part of your tax refund .
The Amish not accepting the stimulus checks is a confirmation that they truly are an independent community. They don't want to be associated with politics or government finances. However, they're still regarded as US citizens so the government is obligated to send help whether they accept it or not.
You will need to file a tax return for Tax Year 2020 (which you file in 2021). The deadline to file your taxes was last October 15, 2021. If you missed the October 2021 filing deadline, you can still file your tax return to get your first and second stimulus checks.
One tradeoff of issuing stimulus checks is the possibility of rising inflation. If all households immediately spend a large portion of their stimulus checks, the supply of goods and services in the economy may not be able to keep up with consumer demand.
All second stimulus checks were issued by January 15, 2021. If you didn't get a second stimulus check by then (mailed checks may take longer to deliver), you can claim your second stimulus check as the Recovery Rebate Tax Credit on your 2020 tax return. You must file a 2020 tax return by May 17, 2024.
If you didn't get a first and second Economic Impact Payment or got less than the full amounts, you may be eligible to claim the 2020 Recovery Rebate Credit by filing a 2020 tax return if you have not filed yet or by amending your 2020 tax return if it's already been processed.
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.
You will need to file a tax return for Tax Year 2020 (which you file in 2021). The deadline to file your taxes was last October 15, 2021. If you missed the October 2021 filing deadline, you can still file your tax return to get your first and second stimulus checks.
If you haven't received your $3,200 in stimulus checks, you can still claim the full amounts by filing your 2020 and 2021 tax returns by May 17th, 2024.
It's not too late to get any missed stimulus checks! You will need to file a 2020 tax return to get the first and second stimulus checks and a 2021 tax return to get the third stimulus check. You must file a 2020 tax return by May 17, 2024.
Introduction: My name is Aracelis Kilback, I am a nice, gentle, agreeable, joyous, attractive, combative, gifted person who loves writing and wants to share my knowledge and understanding with you.
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