The IRS is not even close to completing the payments for the third stimulus check. The sixth round of payments was released this week and many more remain. There are also catch-up payments going out to those who have already got an initial stimulus payment. so here’s what you need to know about your payments. Lawmakers are also aware that the present schedule of payments will not last Americans through the pandemic and are planning for more this year and even the next.
The extended tax filing period has made it possible for many to get an extra plus-up payment. These catch-up payments are being sent for revised calculations by the IRS which showed that you are eligible for much more than you have received in your first stimulus check.
Different groups like the Social Security and veteran beneficiaries have also started receiving their stimulus checks this month. You also need to be sure that you get all the payments for which you are eligible.
The Stimulus Checks Will Be Coming In For Months Now
Close to 700,000 plus-up payments went out to people who have already received their Stimulus check. It appears that the IRS based your initial payment on the previous tax returns in 2019. They found that you were owed more money when they received your 2020 tax returns.
It could also be the addition of a new member to the family in 2020. Older dependents with certain disabilities are also among those eligible for an additional stimulus payment of up to a value of $1,400. This amount will go to the head of the family.
You also need to calculate how much you would receive in your stimulus check. There are ways to keep track of your catch-up payment. you also should keep the letter the IRS sends along with the stimulus check. It will help you for further claims if you have received less than the right amount.
The Child Tax Credit payment will be big support once the $1,400 stimulus check runs out. Half of the $3,600 max amount is expected to be paid between July and December 2021. The rest of the amount will be paid as a tax credit against the returns filed in 2022.
Other Payments Scheduled Till December 2021
The IRS has time until December 31 of this year for sending out the stimulus payments. So if you have yet to file your returns or have filed for an extension, you can expect to catch up on payments later in the year.
People who have moved recently or do not have a fixed address will also get their stimulus check late. it doesn’t come in by the last day of this year, you can still claim any missing amount when you file your tax returns in 2022.
A Total Of 5 Different Payments This Year
There are also the Child Tax Credit payments that will be periodical and expected to be partially paid between July and December. Half of the up to $3,00 amount will go out in 2021. The rest will be given as a part of tax refunds in 2022.
There is also a monthly check of $300 for the unemployed. Finally, President Biden has put together 2 more proposals in 2021 that could put more money into the hands of people badly affected by the pandemic. It could also help jumpstart the economy, thereby slashing scarcity and boost the US economy.
The $2 Trillion Infrastructure Plan and More
One of the upcoming plans to further boost the American economy is the $2 trillion infrastructure plan. Once approved it could provide much-needed money for the infrastructure.
A second plan proposed scheme is the American Families Plan that could further contribute another $1 trillion towards families and individuals.
What Can We Expect From The American Infrastructure Plan?
Though this plan is some way off, the infrastructure plan is expected to construct and improve roads and other transportation hubs. It will help rebuild the power infrastructure, help set up charging points for electrical vehicles, and help rebuild the housing infrastructure. It is also expected to boost hi-speed broadband services for many rural areas.
How Will The American Families Plan Benefits You?
An upcoming plan post the jobs and infrastructure plan is the $1 trillion for the American Families Plan. Here are a few of the major areas it is expected to cover.
The child tax credit is expected to be expanded further. The present amount sanctioned should bring down child poverty drastically. Almost 45% of children are expected to benefit immensely. The administration is studying ways to expand it beyond this year well into 2025.
Another issue that President Biden wished to address is to make college free for the first two years. This plan is expected to cover 2 years of college and includes fresh school graduates and adults. Training programs are also expected to be free.
There is also a proposal for covering pre-Kindergarten education of 3-4-year-olds. Child care is also on the agenda. There are proposals to make it more affordable through subsidized child care expenses and other tax credits.
Another proposal is to broaden support of around 12 weeks of medical leave.
Other Developments That Is Expected To Support The American Citizen
Other suggestions are also being studied to help you save more money or support you in different areas.
Student loans are one of the most difficult burdens for an average family. Average student loan debts have risen to $1.7 trillion by December 2020, at an average of $30,000. American Student debts are more than credit cards and auto loans. The President has proposed waiving student loans by $10,000.
Call For A Hike In Minimum Wages
The effort by President Biden to increase the minimum wages to $15 per hour was stalled in March. The minimum wage is $7.25 per hour at present. But the Congress has vowed to continue efforts to lift the minimum wages and help millions. A Brookings Institute study has found that the raise to $15 an hour could help 37% of American households self-sufficient.
A Fourth Stimulus Check?
Many Democratic lawmakers have supported a fourth stimulus payment as many Americans continue to struggle from the effects of the pandemic. The current stimulus payments are expected to last no more than 3 months for most Americans.
Around 10 Democratic lawmakers proposed to include regular stimulus payments in the next stimulus bill. Senior Democrats have urged for extending and expanding the current stimulus support being given by the federal government. They include the respected Bernie Sanders and Elizabeth Warren. They have urged for regular direct payments and extension of unemployment insurance given the present economic conditions.
Federal Unemployment Assistance Benefits Beyond September
The senators have also urged the president to extend the unemployment assistance beyond the current sanctioned plans till September.
