4th Stimulus Check Update Today
You might have seen the latest headlines about the stimulus check, but did you know that the government is not actually handing out the checks? These checks are being distributed on a state and local level. You can boost your budget with a 14-Day Money Finder. Here are some ways to use your stimulus check to make ends meet and stay afloat. Read on to learn more. And be sure to check back tomorrow for another update!
$600 million is set aside for recurring payments
The White House has not given a clear indication if the 4th stimulus check will be approved or not, but progressive Democratic lawmakers have pushed for recurring payments. If passed, these payments would provide low-income workers with up to $2,000 a month for the duration of the current pandemic. These payments could also be set up to be sent automatically when specific economic metrics reach certain thresholds, such as 6 percent unemployment. That way, they would not have to wait for Congressional approvals and delays.
As of today, almost two-thirds of Californians are expected to receive one of these checks. In fact, nearly two-thirds of them will qualify for a check of this size. And if they have children, they’ll be eligible to receive $500 checks. Florida’s Heroes initiative is also giving out a yearly $1,400 stimulus check to first responders. Teachers and principals will also receive a $1,000 disaster relief payment.
The revolving-door approach to distributing the $900 billion stimulus bill has prompted a flurry of political maneuvering over the issue. Democrats had been pushing a $3.5 trillion budget blueprint to fund their human infrastructure plans. The Build Back Better Act, which passed the House in November and is headed to the Senate for a vote sometime this month, would have a much better chance of passing if the fourth stimulus check is included in the bill. However, funding these plans will almost certainly require tax increases on wealthy individuals and corporations, and Republicans are firmly opposed to any tax hikes.
$600 million is set aside for plus-up payments
The IRS has stepped up the distribution of one-time stimulus checks today. Today, they announced that nearly 2 million people in California will receive at least $600 in plus-up payments. These checks will be based on your federal tax return from last year, or from another source. That means that if you received the third stimulus check and later had a baby, you could receive an even bigger payment.
Almost all third-round stimulus checks have been mailed out. This gives the IRS and US Department of Treasury enough time to process and mail out all third-round checks. That means they have enough time to process tax returns for 2020, square up plus-up payments, and issue additional checks to people who moved. As a result, you should expect to receive your check by mid-April.
The fourth round of economic relief payments is nearly complete with 161 million people receiving up to $1,400 each. This round also includes plus-up payments for individuals that are struggling to find jobs. This latest round of payments comes on the heels of previous one-year stimulus checks that began in January. Overall, these payments have a total of $422 billion from President Biden’s $1.9 trillion American Rescue Plan Act.
$600 million is set aside for child tax credit payments
California Governor Gavin Newsom signed a $100 billion California Comeback Plan into law in July, part of his state’s $262.2 billion budget. The new plan pays residents with incomes between $30k and $75k $600 and $1100 for those with children. This stimulus payment started going out last Friday and replaces the $30k income limit. California is one of the many states that will see increased payments to low-income residents.
Previously, extended unemployment benefits were available until Labor Day. The American Rescue Plan also includes the advance payment of the Child Tax Credit. It is unclear when or how much of that will be paid, but the current scheme expires in 2022. In addition, there’s still the question of who will benefit from the new plan. This question has spurred Democrats to unveil a $3.5 trillion “human infrastructure” plan. While many Republicans are skeptical of such a massive spending plan, Democrats hope to push it through budget reconciliation process without the support of the GOP.
The fourth wave of stimulus checks includes $600 million for child tax credit payments. The payments will go directly into the bank accounts of eligible families and help them with living expenses. Previously, these checks did not require recipients to repay overpayments. However, the enhanced CTC requires recipients to repay an overpayment. The child tax credit was designed to help low-income families weather the economic downturn.
