Millions of parents received their thirdon their bank accounts this morning. And if you live in California, you could make even more money with the second round of Golden State Stimulus checks for $ 600 (or up to $ 1,100) on Friday. The extra money – whether from Washington or your state – has provided American households with much-needed help throughout the ongoing pandemic. But unfortunately, some families may owe the IRS previous stimulus checks due to a mathematical error.
Although a fourth stimulus payment is not on the table this year, some households could benefit from another stimulus check of up to $ 1,400 if they have had a baby or adopted this year – although money doesn’t arrive until 2022. Other IRS help includes additional “plus-up” payments for stimulus amounts owed, as well as.
Given the generalized financial insecurity and the growing importance ofIn this case, there is a lot of support across the United States for more direct relief – a petition calling for recurring checks for $ 2,000 has garnered more than 2.88 million signatures. Yet Congress has not authorized another check this year and has no intention of doing so. Lawmakers focus on $ 1 trillion and the $ 3.5 trillion federal budget package.
Below we’ll explain the latest information on stimulus funds, the enhanced child tax credit, and other payments. here’s howif you haven’t received it yet, and what you need to know about . We update this story frequently.
Are there any plans for a fourth stimulus check this year?
The short answer is no.
The researchers found that the first three stimulus checks helped reduce hardships such as insufficient food and financial instability. So far during the pandemic, eligible adults have received a maximum of $ 3,200 and children have received up to $ 2,500. For struggling families, this is not enough to recover from lost wages and benefits.
Since, the White House has proposed several packages, including the American Jobs Plan and the Build Back Better agenda, but these do not call for more direct help. President Joe Biden is “open to a range of ideas” regarding stimulus aid, according to a June statement by White House press secretary Jen Psaki, but has already put forward what would be “most effective in the short term”.
The new scaled-down compromise of the $ 1,000 billion bipartisan infrastructure deal, which was agreed to in the Senate on July 28, does not include anything related to “human infrastructure” – it does not deal with custody children, better wages or better employment. coaching. Instead, these elements could be included in the proposed $ 3.5 trillion reconciliation package. The Senate took the first step towards approving the package through a budget resolution, and the House recently followed suit.
It’s been a few months since Democratic members of the House and Senate pleaded for yet another stimulus check. In late March, a group of lawmakers called on Biden to include regular stimulus payments (PDF) in his next stimulus package. In May, several members of the House Ways and Means Committee (PDF) made a similar request. Citing rising poverty and skyrocketing debt among Americans, they noted that “most people spend relief checks on monthly expenses or on essentials such as food, utilities, rent and mortgage payments “.
What stimulus money is already approved by Congress?
Child tax credit payments for families: A temporary expansion of the child tax credit for 2021 sends eligible families up to $ 3,600 for each child – you canhere. Partial advance payments of up to $ 300 per dependent, which began this summer, are issued monthly (the next will be October 15) until the end of the year, with a final payment in 2022 .
Parents also have the option ofand instead receive their payment in the spring. There is no cap on the total amount of credit that a family with several children can apply for. If the credit is more than what is owed in taxes, families will receive the excess amount as a tax refund next year. In addition, low-income families may be eligible for the maximum credit. Here is more on payment dates and eligibility.
Additional federal stimulus funds: Third stimulus payments of up to $ 1,400 are always paid out in batches to those who qualify. The IRS also sends, which is additional money making up the difference between the amount of stimulus you have already received (based on your 2019 return) and the amount you are eligible to receive (based on your updated 2020 return).
Additionally, if a family member becomes a dependent in 2021, such as a newborn or foster child, they may also be eligible for a payment of $ 1,400. According to the tax agency, for any new eligible dependent who will receive the third payment, you will need to claim a recovery refund credit on your 2021 tax return that you will file in 2022.
Stimulus Payments to Californians: California has approved two rounds of state-level stimulus payments to eligible residents. Called Golden State Stimulus I and II, these payments are intended to support low-income Californians and help those facing hardship due to the pandemic, the state said. Almost two-thirds of residents are eligible for the expanded Golden State Stimulus II, which equates to a one-time payment of $ 600 (with an additional $ 500 for eligible families with children).
Checks began issuing in late August and will continue in batches every two weeks until the fall, with the next round of payments scheduled for September 17. To be eligible, you must have been a California resident for most of 2020 and still live. out there, filed a 2020 income tax return, earned less than $ 75,000 (gross income and salary adjusted), has a social security number or individual taxpayer identification number, and your children cannot be claimed as a dependent by another taxpayer.
Premium payments to educators: As part of the US bailout, state and local governments received $ 350 billion in aid. Much of this aid will go to schools, with some states deciding to pay their teachers and other school staff a “thank you” bonus of up to $ 1,000. The participating states are Georgia, Florida, Tennessee, Colorado, Texas and California. It is likely that other states will approve similar funds in the future, as they have until 2024 to spend the funds.
The situation with the $ 2,000 stimulus check petition
A Change.org petition that has garnered more than 2.85 million signatures calls on Congress to send out a fourth stimulus check of $ 2,000 for adults and $ 1,000 for children on a monthly basis for the remainder of the pandemic. The petition notes that “the recovery has not reached many Americans” and stresses the need for immediate checks and recurring payments so that “we can keep our heads above water.” As the Change.org petition is poised to become one of the most popular on its website, whether it will have any effect is another question.
Could Congress approve additional aid soon?
While there is still a lot we don’t yet know and a lot to debate, there could be additional money in the pockets of Americans in the following scenarios:
If the increase in the child tax credit is made permanent: Expansion moneybegan this summer with monthly payments to millions of low- and middle-income families with children. In a July 7 speech, Biden called on Congress to extend the extended child tax credit until 2025. Other aspects of the U.S. plan for families related to health care costs and medical leave don’t have yet to be negotiated in the next $ 3.5 trillion Democratic spending plan.
If there is an increase in the minimum wage: Some senators continue to look for ways to, which is $ 7.25 an hour. Some supporters want to set the bar at an hourly wage of $ 15 an hour, and others seek to raise it only to $ 11 an hour. In recent years, many states, towns and businesses have implemented higher minimum wage increases at the federal level. However, discussion of a new national rate of $ 15 an hour has run into a hurdle in recent months, and the likelihood of it passing anytime soon is low.
In the meantime, here’s what you need to know about outgoing tax refunds for those who have receivedand the future of .