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Are More Stimulus Payments on the Horizon?
May 11, 2021
In the past month, the IRS has delivered more than $379 billion in direct stimulus payments. Based on income and phased out at higher levels, the payments were intended to help struggling households to catch up on bills and purchase necessities like food. But polls show that most recipients say the money won’t even last three months, sparking discussion of a fourth wave of checks in the near future.
But how true are those rumors? Currently, a group of 21 senators have indeed proposed the idea of a fourth stimulus to President Biden. And it looks as though a majority of Americans - 65 percent according to one poll - support the idea of recurring $2,000 monthly payments.
However, there is no bill currently set to pass Congress, so discussion of more stimulus is currently just talk and nothing more. As the old adage goes, it would be wise not to count your chickens before they hatch.
But let’s take a look at what we do know, regarding current aid efforts and those coming up in the near future. The $300 weekly unemployment “bonus”, which is paid on top of state benefits, is set to continue through September 6. Hopefully that will give everyone time to find adequate employment, but it is always possible that Congress will vote to extend those benefits in a future bill.
Also, the expanded Child Tax Credit payments are set to drop beginning in July. The American Rescue Plan increased the annual child tax credit to $3,000 for children aged 6-17, and $3,600 for those under 6, while also making the credit fully refundable. Half of that amount is set to be disbursed via regular payments (perhaps monthly) beginning in July. Parents will then claim the rest of the credit on their 2021 tax return.
Those are the two provisions we will continue to see roll out this year. As for a fourth stimulus check of some type, the idea does look popular but we can’t predict anything concrete at this point.
If you need help adjusting your financial plan during these uncertain times, call our office to schedule an appointment. We can assess your current situation and then help you to make a plan for both the near and distant future.
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