The IRS started sending out the third stimulus checks in the second week of March. 161 million payments have been issued and most Americans have received their stimulus check either directly through their bank or in the mail.
But millions are yet to get their payment and are struggling to scrape through the pandemic-induced economic crisis. But lawmakers are already pitching for the fourth series of stimulus support that could guarantee food on the table and other basic needs for most Americans.
The federal government has given up to $3,200 in all to most individuals who qualified for it. it was $1,200 in the first round, $600 in the second, and up to $1,400 this year.
Pitching For A Fourth Stimulus Check
21 Democratic senators have put their signature on a petition sent to President Biden for the continuation of the stimulus support. They have said that the third stimulus payment won’t last them for long even as the pandemic continues to rage. Around 60% of people say that this payment isn’t going to support them beyond three months.
The Democratic senators haven’t been specific about the amount needed for continuing the direct economic support. The push by Democratic lawmakers this January was for a $2,000 support per month until the crisis had been overcome. But the amount authorized was $1,400 under the rescue plan.
Many people have saved or paid off debts, as revealed by an analysis by the Federal Reserve Bank. This indicates that Americans are stacking away for worse days ahead.
Many people also used the amount for necessities like food and paid for housing costs. Most Americans, around 70%, have said that the money has helped their immediate financial needs. The figure is down from 80% last year but the situation continues to be grim. People continue to need direct financial stimulus to see them through the pandemic.
Economists Too Pitch In For A Fourth Round
Around 150 economists had last year written for the need to give direct and recurring stimulus support to Americans that would go on as long as the pandemic continued to affect the economy.
There has been some recovery in April with people getting hired again. But most people who had been laid off continue to remain unemployed. Many among them have also been unable to access government aid programs. This was revealed by the Humanity Forward’s political director, Greg Nasif. It is a non-profit that has advocated continuing stimulus aid for Americans.
A study by Eliza Forsythe, economist, has revealed that only 40% of the jobless got any unemployment aid. Many people did not realize that they were entitled while many were put off by the difficulty in getting the payment.
Is It Too Early To Hope For A Fourth Stimulus Payment?
The Biden administration is at present focused on the infrastructure plan; the $2 trillion package that is expected to revamp the economy. This money will go towards building roads, airports, bridges, etc., and also help build affordable housing.
It will be tougher for the Democrats to get through the increase in the corporate tax rate to 28% from the 21 % at present. It is because even some Democrats are opposed to the steep hike in rates.
A further aid that will directly benefit many American households is the Child Tax Credit. Families will receive half of the periodical payments from July to December of up to $3,600 per child under 6 and $3,000 for children between 6 and 17. The rest, between $1,500 and $1,800 per child, will be given as tax credit or a refund against tax returns next year.
Effect Of The Vaccination
The vaccination drive is expected to have a positive effect on the economy and it is expected to recover as more states open up. JP Morgan Chase has even predicted that a boom could last well in 2023.
The increase in savings, deficit spending, the boost to infrastructure all are expected to fuel a long run for the economic boom, as the various federal supports are set to continue till 2023 in various forms.
A fall in the jobless numbers should negate the need for the continuation of the direct stimulus aid in the future. The unemployment rate might go down to 4.3%, as per reports of Oxford Economics. But around 4 million workers continue to remain outside the workforce and that is a cause for worry. But the sentiment remains positive for the labor market.
Tracking Your Third Stimulus Check
The Get My Payment site was reopened by the IRS after the sanction of the 2021 American Rescue Plan. It helped people to keep track of their stimulus check. This portal was created after the first stimulus payment of $1,200 last year, under the CARES Act.
The site reveals several bits of information. It confirms that the payment had been processed. It also gives out the date and the mode of payment; direct deposit to banks or mail. IRS sends a preloaded debit card or a paper check if the payment is through the US postal service.
What Does The ‘Payment Status Not Available’ Message Mean?
This message can indicate that the IRS is yet to process your stimulus payment. But it could also mean that you are not eligible for any payment.
What About The ‘Need More Information’ Message?
This message usually indicates that the US postal service couldn’t deliver your stimulus check because of insufficient information or the wrong address. You can provide your bank details to the IRS through this site. But it is only possible when you get the Need More Information note.
Getting On To The IRS Site
You will be denied access to the Get My Payment site if you fail to prove your identity. You would have to enter the correct Social Security number, your birth date, and the right address.
You can try again only after 24 hours if you get locked out after several attempts.
A Change In Address
Many stimulus payments were returned because the US postal service could not trace them. Many people who moved failed to provide that information to the IRS or the US postal service. The IRS site doesn’t allow you to update your address.
Filing your tax returns for 2020 before the May 17 deadline is the fastest way to update your address. This will also update information on any children welcomed into your family in 2020 or the addition of any other dependents. They could each add up to $1,400 to your stimulus check.
Getting The Right Bank Account
If you have changed your bank, the IRS at present cannot change the bank information they have in their records. The only way you can receive your stimulus check is for the IRS to send out a mail once the amount is returned from the bank. This will delay your stimulus check.
Getting The Right Amount In Your Stimulus Check
Many people have got their check but it doesn’t match their calculation. This could be due to several factors. The IRS has based its stimulus check payment on the information they have in their records from the last tax returns. So if your family has more members at present, you need to update that information. Or there might have been a slump in your income in 2020. All these bits of information can only be updated by filing the latest tax returns in 2021. The balance amount will eventually come in as plus-up payments.
