Skip to content
IRS Now Sends Millions of Additional Stimulus Checks


The IRS said it was continuing to distribute federal stimulus checks to eligible Americans, with an additional 2.3 million payments issued on Wednesday. Some of these payments include “premium” adjustments for people who received less money than they were entitled to in previous checks.

The latest round of payments is part of the Biden administration’s efforts under the US bailout to return $ 1,400 to each eligible adult and child. The IRS said on Wednesday it made more than 169 million payments worth $ 395 billion, with the latest batch of checks totaling $ 4.2 billion.

Long wait for some

As the latest stimulus payments started to hit bank accounts in March, some people have had to wait weeks or months for their checks. This is because the IRS prioritized sending checks to people who had already filed their 2019 or 2020 tax returns because the agency was able to quickly verify eligibility based on income and also determine where to post. or deposit checks directly.

But others, like those who aren’t required to file tax returns or who requested adjustments to their payments, had to wait for the IRS to process their payments.

Among the 2.3 million payments are 900,000 checks sent to people who have recently filed a tax return and for whom the tax administration previously did not have information to issue the money. And an additional 1.1 million payments were for additional adjustments for people who qualified for larger checks based on recently processed 2020 tax returns, the IRS said.

Fourth stimulus check?

Latest batch of checks come as 25 states soon end stepped-up unemployment assistance, cut millions unemployed workers $ 300 in weekly assistance two months before federal funding expires. According to an estimate by the Century Foundation, a liberal think tank, around 1 in 4 unemployed people will lose their benefits as a result of the early termination of unemployment benefits.

Many families continue to suffer from a financial impact on their income since the pandemic, with the unemployment rate rising to 5.8%, still well above its pre-pandemic level of 3.5%. A quarter of Americans have struggled to pay for household expenses in the past week, according to a Center on Budget and Policy Priorities analysis of data from a census survey in early May.

This prompts some lawmakers to call for a fourth stimulus check. More than 20 senators – all Democrats – signed a March 30 letter to President Joe Biden in support of recurring stimulus payments, pointing out that the $ 1,400 payment distributed by the IRS will not delay people for long.

So far, experts say it’s unlikely another round of checks will be approved by lawmakers anytime soon. But some people will soon receive further help through the expanded child tax credit, the American Rescue Act ordering the IRS to send monthly checks July through December to eligible parents.

The IRS said earlier this week that it was sending letters to 36 million families who are entitled to payments. This effort will provide payments of $ 300 for each child under age 6 and $ 250 for each child aged 6 to 17 to middle and lower class families who earn below an income threshold.

The IRS has stated that these income thresholds are:

  • $ 75,000 or less for single taxpayers
  • $ 112,500 or less for heads of household
  • $ 150,000 or less for married couples filing a joint return and eligible widows and widowers

.



Source link