Third stimulus check news summary: 5 April 2021
Stimulus check updates: Monday 5 April 2021
Stimulus leads to cliff fall
Jeroen Blokland, the Head of Multi Asset at Robeco in the Netherlands, has been looking at the impact of huge amounts of stimulus spending. This forecast concerns not just the United States but on a global scale.
Is stimulus debate forgetting China?
The scale of US President Joe Biden’s American Rescue Plan - $1 trillion in spending for this year, another $900 billion after that, plus a $3 trillion infrastructure and energy program that has been promised - has spooked many macroeconomists. Are their fears justified?
The bank and bond-market economists, having cried wolf before, can be disregarded. A year ago, many of them warned that the $2.2 trillion Coronavirus Aid, Relief, and Economic Security (CARES) Act would incite hyperinflation by massively increasing the money supply. It didn’t happen.
An opinion piece from Jack Galbraith.
Taking the temperature of the covid relief package
Climate change is a massive concern for the Biden administration and a new analysis shows how oil and mining businesses used tax changes in the CARES Act to improve cash flow and reward shareholders rather than maintain employment.
What does the current situation mean for the industry?
Getting the money from President Biden's American Rescue Plan is one thing, but as we've seen across the country, how states decide how best to use those funds is key.
One idea being implemented is that of summer camps. Read more from CBS46...
Biden appoints Global global covid-19 response coordinator
Gayle Smith has been tapped for a new post at the State Department where she will coordinate the Biden administration’s international response to the covid-19 pandemic. She helped lead the Obama administration’s response to the Ebola outbreak in 2014 that spread from West Africa to the US.
As coordinator for Global Covid Response and Health Security she will help with the global covid-19 vaccination effort. Secretary of State Tony Blinken said that as the Biden administration gets "more confident" about vaccine supply domestically, they are looking at options for sharing vaccines with other countries. He has not given specifics but said that the effort would begin soon.
Who should be expecting a plus-up payment from the IRS?
Even though you received your third stimulus payment already, another plus-up stimulus payment might be on its way as the IRS processes 2020 tax returns.
Since the payments began in the middle of processing 2020 tax returns, the IRS had to go off of 2019 tax returns in some cases. So if a tax filer's circumstances changed in 2020 and already received a stimulus check, they might not have received the full amount due to them.
How much would a fourth stimulus check be?
Democratic lawmakers in both chambers of Congress have urged the White House to include recurring stimulus checks in President Biden's Build Back Better program. How much are lawmakers calling for?
Read the full story:
The IRS is contacting taxpayers regarding 2020 Recovery Rebate Credit mistakes
The IRS is mailing letters to some taxpayers who claimed the 2020 Recovery Rebate Credit and may be getting a different amount than they expected. The IRS reminds taxpayers that the first and second Economic Impact Payments (EIP) were advanced payments on 2020 Recovery Rebate Credit, most of which were already paid out.
Most taxpayers “shouldn't or don't need to include” information about the first two EIPs on their 2020 tax return. If a taxpayer is eligible for more of the 2020 Recovery Rebate Credit than that person received, it will be reduced by the amount of any EIPs already issued to them.
Taxpayers who receive a notice saying the IRS changed the amount of their 2020 Recovery Rebate Credit should read the notice. Then they should review their 2020 tax return, the requirements and the worksheet in the Form 1040 and Form 1040-SR instructions.
To find out more click here.
Stimulus checks lead to rise in charitable giving
The stimulus checks distributed in the US during the coronavirus pandemic have contributed to a rise in charitable donations, according to a report by MarketWatch.
Between 6% and 7.5% of stimulus check recipients gave away the money, according to according to the US Census Bureau’s Household Pulse surveys. That represents an increase of 10.6% between 2019 and 2020. According to Woodrow Rosenbaum, the chief data officer at fundraising campaign Giving Tuesday, there was a "measurable spike" in $1,200 and $2,400 donations to charity when the first stimulus check was sent out in April 2020.
"This suggests that at least some people were donating their entire stimulus check to charity at that time," Rosenbaum said. Giving Tuesday ultimately raised $2.47 billion in the U.S. in 2020, up from $1.97 billion in 2019.
Will there be a fourth stimulus check?
A recent poll from Data for Progress found that 65% of Americans are in favor of recurring payments of $2,000 per month for the duration of the pandemic. The results of this survey come after a group of Senate Democrats led by Senator Ron Wyden called on President Joe Biden to support recurring stimulus checks for low-income Americans as part of his coronavirus relief response.
With the majority of the third round of $1,400 stimulus checks having been sent out at this point, many people are wondering if a fourth payment could follow.
Is a new relief bill viable? Read here to find out
Covid-19 vaccine may be treatment for "long COVID."
An estimated 10% to 30% of people who get covid-19 suffer from continued symptoms of the disease, or what's known as "long COVID." It appears now that the vaccine may be helping those with this post-illness syndrome, to reduce or even fully cure the lingering symptoms. Scientists who study the post-illness syndrome are taking a close look.
Democratic senators want expanded Child Tax Credit to be permanent
President Joe Biden’s American Rescue Plan included a one-year expansion of the Child Tax Credit which will send up to $3,600 to parents. 41 Democratic senators say one year is not enough and are urging him to make the expanded Child Tax Credit and the expanded Earned Income Tax Credit permanent also included in the bill.
The two measures will lift millions of Americans out of poverty. However, the senators in a letter to the White House state letting the expansions expire after one year “would result in a significant spike in child poverty, after we have made historic strides to end it.”
New rule proposed to stop foreclosures in 2021
As the light at the end of the pandemic tunnel gets brighter, a dark cloud of foreclosures looms over the exit. The Consumer Financial Protection Bureau is considering restrictions on mortgage servicers that would ensure that homeowners don’t go straight from forbearance to foreclosure when pandemic-related pauses expire. More than 3 million households are behind on their mortgage payments, and nearly 1.7 million will run out their forbearance periods in September.
What should you do with your stimulus check money?
The IRS has sent around 127 million Economic Impact Payments in the third round of stimulus payments. As Americans see the funds show up in their bank accounts and in the mail, they may be wondering how can they best use the money.
Is it better to pay down your debts or save some for a rainy day? Christy Bieber, gives advice on why to consider holding on to some of your stimulus money even if it means not reducing a balance on a high interest debt. Read more here.
IRS wants you to know that you may have money owed to you
In a press release on Monday the IRS warns taxpayers that time is running out to claim their 2017 tax refund, if they haven’t already done so.
Unclaimed income tax refunds worth more than $1.3 billion await an estimated 1.3 million taxpayers who did not file a 2017 Form 1040 federal income tax return, according to the Internal Revenue Service.
"The IRS wants to help taxpayers who are due refunds but haven't filed their 2017 tax returns yet," said IRS Commissioner Chuck Rettig. "Time is quickly running out for these taxpayers. There's only a three-year window to claim these refunds, and the window closes on May 17. We want to help people get these refunds, but they will need to quickly file a 2017 tax return."
The IRS estimates the midpoint for the potential refunds for 2017 to be $865 — that is, half of the refunds are more than $865 and half are less.
In cases where a federal income tax return was not filed, the law provides most taxpayers with a three-year window of opportunity to claim a tax refund. If they do not file a tax return within three years, the money becomes the property of the U.S. Treasury. For 2017 tax returns, the window closes May 17, 2021, for most taxpayers. The law requires taxpayers to properly address, mail and ensure the tax return is postmarked by that date.
Check out the video below and for 2017 tax returns, to find out more, click here.
IRS says third round of stimulus checks include ‘plus-up’ payments
The IRS has announced that it is also offering "plus-up" payments to some people who previously received partial payments and may now be eligible for more money. These "plus-up" payments are paid on top of the $1,400 payments.
According to the IRS the "plus-up" payments can result from a situation where a person's income dropped in 2020 compared to 2019, or a person had a new child or dependent on their 2020 tax return, among other situations.
Delaware lawmakers discuss benefits of American Rescue Plan
Delaware Democratic Senators Tom Carper and Chris Coons, and Representative Lisa Blunt Rochester discuss Joe Biden's American Rescue Plan, answering questions on how Delewareans -- and all Americans for that matter -- can benefit from it...
CA senator calls on state to use stimulus funds to tackle drought
With California facing more devastating droughts, Senator Toni Atkins has called on the state to use stimulus funds to tackle the issue, along with other funding sources.
"We have a once-in-a-generation opportunity to take action with one-time available funds and federal stimulus dollars, on top of existing bond funds. Let’s turn on the tap and get those dollars flowing now," she tweeted.
City and county governments in California are set to receive a total of around $16 billion from Joe Biden's American Rescue Plan.
No address, no ID, and struggling to get their stimulus checks
Many people living in homeless shelters and on the street have not received the federal stimulus checks they’re entitled to, stymied by misinformation and bureaucracy.
Full story via The New York Times.
What Biden’s American Rescue Plan means for your healthcare coverage
The American Rescue Plan (ARP), also called the covid-19 Stimulus Package, which was recently signed into law by President Joe Biden, can improve the affordability of coverage for individuals who are already enrolled in marketplace health plans. It can also provide millions more an opportunity to newly sign up for coverage with increased financial assistance this year. Over $3 billion in additional federal funding for healthcare will be allotted to Florida alone.
This means that nearly 730,000 uninsured Latinos in the US, many of them in the Sunshine State, will be newly eligible to save money on healthcare coverage, and 580,000 will be eligible for zero-dollar benchmark marketplace plans. Read more.
Status of $1,400 stimulus checks
The IRS has distributed 127 million stimulus payments in the first two batches in March. Those that haven’t received one and are wondering when theirs will arrive can read more here. The tax agency has said that they will be sending payments out weekly throughout 2021.
With the passing of President Joe Biden’s first major legislative priority since taking office eligible Americans will have a host of new tax provisions to take advantage of. These include another round of direct stimulus payments, enhanced Child Tax Credit, and a waiver on up to $10,200 of taxed unemployment compensation in 2020.
With the provisions being enacted in the middle of the 2021 tax filing season, some Americans have already filed their taxes and are left with doubts about whether they will benefit from the provisions. Likewise, those that haven’t filed are wondering if they’ll miss out on stimulus money as checks have already started landing in bank accounts. On both accounts, there isn’t a need to worry, but you may have to wait until the Internal Revenue Service (IRS) can catch up with the extraordinary workload.
The tax filing deadline has been extended again this year but only until 17 May, giving taxpayers an extra month to “navigate the unusual circumstances related to the pandemic." This means taxpayers have more time to file without penalties or interest but don’t expect the tax agency to push back the date again this year.
What is a plus-up payment?
This latest batch of payments includes the first of ongoing supplemental payments called "plus-up" payments. These plus-up payments will be going out to people who may have already received the third stimulus check. Basically, plus-up payments will go out to individuals who received a third stimulus check based on information taken from their 2019 income tax return but who qualify for a new or larger payment based on this year’s return.
For example, you will be eligible for a plus-up payment if you suffered a drop in your annual income from 2019 to 2020, or married couples who file jointly and have a new child or dependent on their 2020 tax return who can be claimed for. Couples who filed separately for 2019 but who have since married and file jointly may also be due a supplement payment as long as their joint income is below the phase-out threshold for joint filers, $150,000.
Last week, the Internal Revenue Service, US Department of the Treasury and the Bureau of the Fiscal Service announced that a third batch of Economic Impact Payments from the American Rescue Plan is scheduled to be sent out to those who have not received their checks. The third batch of payments began processing on Friday 26 March with the official payment date on the morning of Wednesday 31 March – just before the Easter holidays.
Key Senators call for recurring stimulus checks in White House letter
Last week 21 Senate Democrats wrote to President Joe Biden to urge him to include recurring stimulus checks in the new recovery plan, the first sign that there is clear support amongst some in the Upper House for more direct payments.
The proposal was led by Finance Committee Chair Ron Wyden of Oregon, and co-signed by the likes of Democrat Senate number two Dick Durbin; Budget Committee Chair Bernie Sanders; Banking Committee Chair Sherrod Brown and progressive Sen. Elizabeth Warren.
IRS tax deadline extended from 15 April 15 to 17 May
“This continues to be a tough time for many people, and the IRS wants to continue to do everything possible to help taxpayers navigate the unusual circumstances related to the pandemic, while also working on important tax administration responsibilities,” said IRS Commissioner Chuck Rettig in a statement.
'Stimulus check' Google search most popular in southern states
Mississippi, Alabama and Kentucky are the US states where stimulus checks are being most widely searched for according to Google Trends.
SSI recipients should get their checks this week
Stimulus payments to Social Security (SSI) recipients and other federal beneficiaries who do not normally file a tax return have suffered delays but are expected to go out this week and should be received on Wednesday 7 April.
If you haven't signed up for direct deposit with the IRS, the quickest and easiest way to make sure they have your contact details is by filing your 2020 tax return with your current home address. If your payment can’t be delivered to you for any reason, it will be returned to the IRS.
IRS Advocates Get My Payment tool
Families who have not yet received received their stimulus payment can track its progress with the IRS Get My Payment Tool
Futures gain after robust monthly jobs report
U.S. stock index futures gained on Monday, as investors returning from a long weekend cheered data showing strongest jobs growth in seven months that could mark the beginning of the best annual economic growth in nearly four decades.
Futures tracking the domestically focused Russell 2000 jumped about 1.5% as Friday's report showed U.S. nonfarm payrolls surged by 916,000 jobs in March, well above 647,000 forecast by a Reuters poll of economists.
Shares of U.S. banks, industrial and material firms including Bank of America, JPMorgan Chase & Co, Boeing Co and Dow Inc, which are poised to benefit from an improving economy, firmed about 1% each in premarket trading.
Biden administration launches "Mask Innovation Challenge"
The Department of Health and Human Services has launched the $500,000 "Mask Innovation Challenge." The goal is to find a design that will make protective masks easier to wear among the general public, with current available models coming with their fair share of downsides from skin irritation to painful ears and a not-inconsiderable risk to people who wear glasses.
CDC: 165m doses of covid-19 vaccine administered
The United States has administered more than 165 million doses of covid-19 vaccines in the country as of Sunday morning and distributed nearly 208 million, the US Centers for Disease Control and Prevention (CDC) said on Sunday.
That is up from the 161,688,422 vaccine doses the CDC said had gone into arms by Saturday out of 207,866,645 doses delivered.
The agency said 106,214,924 people had received at least one vaccine dose, while 61,416,536 people have been fully vaccinated as of Sunday.
The CDC tally includes two-dose vaccines from Moderna Inc and Pfizer/BioNTech, as well Johnson & Johnson's one-shot vaccine as of 6:00 a.m. ET on Sunday.
A total of 7,742,126 vaccine doses have been administered in long-term care facilities, the agency said.
Photo: REUTERS/Jorge Silva
Republicans seek to trim Biden's infrastructure plans
According to a report from Bloomberg there is the possibility of bipartisan support for Joe Biden's infrastructure plans, but only if the US president is willing to trim the bill from its planned $2.25 trillion outlay. Senator Roy Blunt, for example, has stated support from Republicans could be forthcoming if the bill is pared down to somewhere in the region of $615 billion.
Stocks gain after bumper jobs data
Global stock prices rose to a 1 1/2-month high on Monday after data showing a surge in US employment while US bonds came under pressure on worries the Federal Reserve may bump up interest rates sooner than it has indicated.
US S&P500 futures traded 0.5% higher, maintaining their gains made during a truncated session on Friday though tech-heavy Nasdaq futures lagged behind, trading almost flat.
In Asia, Japan's Nikkei rose 0.8% while MSCI's broadest index of Asia-Pacific shares outside Japan was almost flat, with China closed for Tomb-Sweeping day and Australia observing Easter Monday.
MSCI's all-country world index was almost flat but stood near its highest level since late February and within sight of a record high set that month.
The US labour department said on Friday that nonfarm payrolls surged by 916,000 jobs last month, the biggest gain since last August.
That was well above economists' median forecast of 647,000 and was closer to markets' whisper number of one million. Data for February was also revised higher to show 468,000 jobs created instead of the previously reported 379,000.
"There will be further improvements in April, as restaurants have started to reopen. People have expected economic normalisation to take place sooner or later but its pace seems to be accelerating," said Koichi Fujishiro, senior economist at Dai-ichi Life Research.
While employment remains 8.4 million jobs below its peak in February 2020, an accelerating recovery raised hopes that all the jobs lost during the pandemic could be recouped by the end of next year.
Biden economic adviser says job growth goal of infrastructure plan
President Joe Biden's top economic adviser said on Sunday that the goal of the administration's infrastructure proposal is investment that will foster job growth in both the short- and long-term.
"What our plan says is, 'let's keep the economy going, let's see more job creation' - that's a really good thing for the economy," White House economic adviser Brian Deese said on "Fox News Sunday."
"But let's also think for the longer term, about where those investments that we can make that will really drive, not just more job growth but better job growth, not just job growth in the short term but job growth for long term, by investing in our infrastructure, by investing in our research and development, in a way that we haven't since the 1960s," he said.
Photo: REUTERS/Jonathan Ernst
FOURTH STIMULUS CHECK
Recurring stimulus checks: how would they work and who is pushing for them?
Even though the IRS has not finished sending all the estimated 160 million direct stimulus payments, there are calls for a new round of stimulus checks, this time recurring. In a letter sent to President Joe Biden in March, Democratic Senators urged the White House to also extend unemployment benefits automatically.
“This crisis is far from over, and families deserve certainty that they can put food on the table and keep a roof over their heads. Families should not be at the mercy of constantly shifting legislative timelines and ad hoc solutions,” wrote Senate Democrats.
Read the full story on recurring stimulus checks.
What are the chances of a fourth stimulus check?
Plans for a fourth stimulus check are gaining support from Congress. A number of Democrats continue to push for a fourth check which would include recurring payments until the pandemic has waned. Newsweek report that 64 lawmakers are urging for a fourth stimulus check with recurring checks to follow. Earlier this month, 11 Senators, including Bernie Sanders and Elizabeth Warren, called for Joe Biden to extend unemployment compensation indefinitely on top of another round of checks.
SSI stimulus check payments will sent by 7 April
After waiting weeks to receive the relevant information from the SSI, the IRS announced last week that they would be able to begin processing around 30 million stimulus check payments for Social Security recipients.
Payments for them and other non-filing Americans will go out the door on 7 April according to the IRS, meaning that direct deposit recipients should begin seeing the $1,400 in their bank accounts in the following few days.
“Our teams immediately began processing data we received last week for federal benefit recipients. We know how important these payments are, and we are doing everything we can to make these payments as fast as possible to these important individuals,” said IRS Commissioner Chuck Rettig.
Stimulus checks lead to rise in charitable giving
The stimulus checks distributed in the US during the coronavirus pandemic have contributed to a rise in charitable donations, according to a report by MarketWatch.
MarketWatch notes that charitable giving increased by 10.6% between 2019 and 2020, quoting Woodrow Rosenbaum, the chief data officer at fundraising campaign Giving Tuesday, as saying there was a "measurable spike" in $1,200 and $2,400 donations to charity when the first stimulus check was sent out in April 2020.
"This suggests that at least some people were donating their entire stimulus check to charity at that time," Rosenbaum said.
Around 4.2 million people told a poll conducted by the US Census Bureau in the first half of March that they had used their third stimulus check to make a charitable donation or had given their direct payment to family members.
$1,400 third stimulus check: do I qualify for a direct payment?
The eligibility requirements for the third stimulus check are very similar to those applied to the first and second direct payments.
CORONAVIRUS STIMULUS CHECKS
Third stimulus check: why is my payment being mailed by post?
Roughly two million of the third stimulus checks distributed by the IRS in last week's latest recent payment run were sent out by mail, in the form of paper checks or pre-paid debit cards.
If you're getting your check by mail, here's why.
CORONAVIRUS STIMULUS CHECK
Third stimulus check: how to check its status with the IRS Get My Payment tool
If you're waiting for your third stimulus check to arrive, you can track its progress using the IRS' Get My Payment portal.
Access the Get My Payment tool
Learn more about the Get My Payment tool
Stimulus-check news: every AS English article
You can check out all of AS English's news articles on Economic Impact Payments in the US by going to our dedicated stimulus checks section.
You'll find information on when your third stimulus check is arriving and how to track it, as well as updates on a possible fourth check.
Check out all our content on stimulus checks
Stimulus check live updates: welcome
Hello and welcome to our daily live blog bringing you the latest information both on the third stimulus check, which sees qualifying Americans get up to $1,400, and on a possible fourth direct payment.