It does not appear that any additional federal Stimulus Check will reach savings accounts for March — or any point in the coming years, despite hopes that some states would extend pandemic stimulus payouts to consumers to help them manage inflation.
Congress would need to adopt legislation enabling additional Stimulus Check funding in order for a further stimulus check to be issued in 2023.
Although receiving additional money in the way of stimulus relief cheques to counteract inflation may seem like a good idea, it would probably have unexpected repercussions that would further fuel inflation. While stimulus spending did not exclusively contribute to inflation, it was undoubtedly a contributing component.
Stimulus Checks Are Over
As a result of the American Rescue Plan Act, an additional $600 in stimulus funding was received between Dec 2020 and Jan 2021. This time, roughly half of all grantees paid off the debt with the money. Americans received an additional $1,400 in stimulus payouts by March 2021. Around 33% of recipients saved this money in an account.
If you reside in one of these countries and have not yet received your money, you can inquire about its whereabouts by contacting your state’s tax authority. Yet, it does not seem like federal stimulus money is now on the table as part of the fight against inflation.
One piece of good news for Those worried about their financial prospects is that most states do not tax any inflation relief cheques you get. But, the IRS didn’t arrive at this choice hastily. The IRS had recommended Americans postpone filing their tax returns “until new guidance is available” as recently as Feb. 3.
If you file in 2023 rather than 2022, your taxes can be different because of a smaller Child Tax Credit and somewhat different tax brackets. Therefore, most state citizens do not have to struggle to pay taxes on the cash they get in the form of state inflation relief.
