What is 4th stimulus check? Latest on $2,000 petition, $1,000 for teachers, $600 for Californians
Here’s the latest on the stimulus money that might be coming your way this month, such as a child tax credit payment.
In the wake of the pandemic, millions of families have benefited from stimulus checks and child tax credits. A fourth stimulus check, on the other hand, is unlikely to arrive in 2021. It’s possible, however, that they’ll receive another stimulus payment of up to $1,400 in 2022, if they’ve had a baby or adopted this year.
Tax refunds on 2020 unemployment compensation as well as supplemental “plus-up” payments from the IRS are also on the way. Another round of Golden State Stimulus checks worth up to $1,100 will be sent to California residents soon. Teachers and school staff in several states also receive $1,000 “thank you” payments.
As households across the country continue to struggle with financial insecurity and the delta variant rises, a fourth stimulus payment has plenty of support, as evidenced by a petition calling for $2,000 monthly checks that has garnered over 2.85 million signatures.
There are currently no plans to approve a fourth economic impact payment, as Congress is focused on passing the $1 trillion infrastructure bill and $3.5 trillion federal budget. Following are the latest updates on stimulus money and other forms of assistance for struggling Americans. Here’s how to find out if you’ve received your tax refund and what you need to know about the unemployment tax break. This story is updated on a daily basis.
Stimulus money that may be coming your way this year
An extension of the child tax credit for 2021 allows qualifying families to receive up to $3,600 for each child — you can calculate your total here if needed. Each month (the next one is on Sept. 15) until the end of the year, with a final payment in 2022, the advance partial payments up to $300 per dependent began this summer.
As an alternative, parents have the option of delaying the monthly advance payments and receiving their payment in the spring instead. There is no limit to the total amount of credit that a family with more than one child can receive.
Families will receive a tax refund next year if the credit exceeds what they owe in taxes. The maximum credit is also available to low-income families. Additional information on child tax credit payment dates and eligibility can be found here (in Spanish).
Additionally, federal stimulus funds are available for: Payments of up to $1400 for the third round of stimulus payments are still being sent out in batches to those who qualify. A “plus-up” payment from the IRS makes up for the difference between the stimulus amount you already received (based on your 2019 return) and the amount you’re eligible to receive (based on your 2019 return) (based on your updated 2020 return).
Other family members who become dependent in the year 2021, like a newborn or a foster child may also qualify for the $1400 payment as well. In order to receive the third payment, you must claim a Recovery Rebate Credit on your 2021 tax return, which you will file in 2022, according to the IRS.
Federal stimulus payments to eligible residents have been approved for a second time in California. The Golden State Stimulus I and II payments, which the state calls Golden State Stimulus I and II, are intended to help low-income Californians and those who are suffering because of the pandemic. Over half of residents qualify for the Golden State Stimulus II, a one-time payment of $600 (plus $500 for eligible families with children). Checks will be mailed out in September.
California residents who still live there and who filed a 2020 tax return must have earned less than $75,000 in adjusted gross income and wages and their children must not be claimed as dependents by another taxpayer, in order to be eligible for the tax credit for the year.$350 billion in aid went to state and local governments as a result of the American Rescue Plan.
Teachers and other school staff in some states will receive a “thank you” bonus up to $1,000 as part of the aid. Georgia, Florida, Tennessee, Colorado, Texas, and California are the participating states. Another state may approve similar funds in the future because they have until 2024 to spend them.
Is it possible a fourth stimulus check could still be passed in 2021?
The short answer is no.
Food insecurity and financial instability were eased by the first three stimulus checks, according to researchers. In the past, eligible adults have received a maximum of $3,200, while eligible children have received a maximum of $2,500 during the pandemic, so far. These aren’t sufficient to make up for lost wages and benefits.
Several packages have been proposed by the White House since the American Rescue Plan, including the American Jobs Plan and the Build Back Better agenda, but none of them call for more direct aid.
Although according to White House Press Secretary Jen Psaki, Joe Biden is receptive towards various stimulus ideas, he has already proposed what he believes will be “the most effective in the short term.” “Human infrastructure” is not included in the new compromise of the $1 trillion bipartisan infrastructure deal, which was approved by the Senate on July 28.
It does not address child care, higher wages, or job training. A reconciliation package of $3.5 trillion could include these elements instead. With the passage of the Senate’s budget resolution and the House’s recent approval of the broader package,
Democrats in the House and Senate have been calling for another stimulus check for several months. As recently as late March, a group of lawmakers asked Biden to add regular stimulus payments (PDF) to his next stimulus package. It was a similar request made in May by several members of the US House Committee on Ways and Means (PDF). They noted that “most people spent relief checks on monthly expenses or essentials such as food, utilities, rent, and mortgage payments,” citing increased poverty and spiraling debt among Americans.
The latest on the petition for $2,000 stimulus checks
Over 2.85 million people have signed a petition on Change.org calling for Congress to send out a fourth stimulus check of $2,000 for adults and $1,000 for children on a monthly basis for as long as the pandemic continues. There’s a note in the petition that “the recovery hasn’t reached many Americans” and that “we need immediate checks and recurring payments so we can keep our heads above water.” There is a good chance that the Change.org petition will become popular, but whether or not it will have any impact remains to be seen.
Could Congress sign off on even more relief money in the future?
If the following scenarios come to fruition, Americans will have more money in their pockets than they do now despite what we don’t know and what is still up for debate:
Child tax credit increases will be permanent if they are made permanent This summer, millions of low- and middle-income families with children began receiving monthly payments from the expanded child tax credit. Bibien urged Congress to extend the expanded child tax credit through 2025 in a speech on July 7. However, there are still some issues to be worked out in the upcoming $3.5 trillion Democratic spending plan, such as health care costs and medical leave.
The federal minimum wage is currently $7.25 per hour, and some senators are looking for ways to raise it. Certain proponents want to set the bar at $15 an hour, while others want to limit it to $11 an hour as a starting point. Recently, a number of states, localities, and businesses have raised their minimum wage above the federal level. But the idea of a $15-an-hour minimum wage has stalled in recent months, and it’s unlikely to be implemented anytime soon.
A few things to know about 2020 tax refunds and federal unemployment benefits in the meantime.