Fourth stimulus check news summary: Tuesday 11 May 2021
US Stimulus checks: live updates, 11 May 2021
Headlines:
- California governor announces expansion of Golden State Stimulus payment scheme
- $600 stimulus checks to be paid out to many Californians who didn't get the first one (find out more)
- California Comeback Plan also includes $500 additional credits for families with children (more details)
- Around 164m federal third stimulus checks distributed so far, with a total value of $386bn
- Latest round of payments includes 570,000 'plus-up' stimulus checks
- Montana, South Carolina governors vow to halt extra pandemic-related unemployment benefits by July (full story)
- April job growth in US below expectations (what impact could this have on fourth stimulus check hopes?)
- Florida to pay out $1,000 stimulus check to state's first responders (who many will get it?)
- 17 May deadline for IRS tax-filing approaching
- You can track your third stimulus check using the IRS' online Get My Payment tool
- US covid-19: 32.77 million cases / 582,848 deaths (live updates from Johns Hopkins)
Check out some of our related articles:
Every AS English news piece on stimulus checks
Our dedicated stimulus checks section has a wide range of articles providing news on a potential fourth stimulus check, and info on the third round of payments currently being sent out.
We also have articles on other economic aid such as the Golden State Stimulus in California, where Governor Gavin Newsom on Monday announced an expansion to the $600 direct-payments scheme.
Newsom’s detractors dub new $600 stimulus check “recall rebate”
Governor Gavin Newsom is facing a recall in his first term as governor of California after he imposed strict covid-19 measures to bring the pandemic under control. The recall campaign amassed 1.7 million signatures, far more than needed to trigger a recall. However, the governor has several months and several billions to spend before he will have to try his luck at the ballot with the voters.
In the meantime, he is proposing to spend $100 billion to help the state recovery from the economic impacts caused by the pandemic. Part of that is sending nearly 80% of the state’s population a $600 stimulus check. This has led one of those leading the charge to recall him to label the tax refund a “recall rebate” and another comparing it to Oprah Winfrey’s on show car give-away.
11 million Californians could benefit from new stimulus check
California Governor Gavin Newsom wants to send $600 stimulus checks to state residents under a multibillion dollar spending plan he introduced this week. Newsom's so-called Golden State Stimulus plan if approved by the California Legislature would send households with annual income of between $30,000 and $75,000 a stimulus check for at least $600 and an additional $500 for those with a dependent.
Enhanced Child Tax Credit coming soon
In order to take advantage of the 2021 Child Tax Credit that will send $250 to $300 monthly direct payments per child to eligible families, it is important that you file a 2020 tax return. There is less than a week until Tax Day 2021. The IRS will use the information to automatically sign up families that meet the requirements to receive the advance payments on the tax credit.
$3000/$3600 Child Tax Credit: when will the monthly payments begin?
As part of the expanded Child Tax Credit, which will give eligible households up to $3,600 per child per year, parents can opt to receive half of their money in monthly instalments. According to the IRS, these payments are due to start going out in July.
Find out more about the distribution timeline for the $3,000/$3,600 expanded Child Tax Credit
California Stimulus Check: how many people will receive the payments according to Newsom?
The California Comeback Plan is a $100 billion proposal to stimulate the state’s economy. Twelve billion dollars have been allocated for $600 direct payments to middle-class families with an income under $75,000. Earlier this year, the state passed a covid-19 economic recovery plan that included $600 checks for low-income workers making less than $30,000. The governor noted that by increasing the income limit, 80% of California taxpayers will be eligible to receive the credit.
Golden State Stimulus Check: What is the “California Comeback Plan” and who is eligible?
As California prepares the budget for the coming year, the government announced an estimated budget surplus of 75.7 billion dollars. This surplus does not account for the additional federal funds that will be sent to the state to combat the health and economic impacts of covid-19.
California Governor Gavin Newsom has announced plans to send out stimulus checks to more residents using 12 billion dollars from the budget surplus. The expanded direct-payments program would represent the "biggest state tax rebate in US history", Newsom said.
Dispelling stimulus extended unemployment benefits effect of labor shortage
The Economic Policy Institute admits that last week’s jobs report was disappointing, with just over a quarter of the 1 million jobs expected actually materializing. However, the authors say it would be a mistake to make too much of a single month’s data given that it can be notoriously volatile.
“As disappointing as last week’s report was, there is nothing in it that demands a reorientation of the general policy stance taken by the federal government. The relief and recovery aid already passed (including the boosts to unemployment insurance) should be continued and proposed packages (like the American Families Plan and the American Jobs Plan) should be passed.”
Golden State Stimulus: How to claim the extra $500 under the California Comeback Plan
Facing a recall election, Governor Gavin Newsom is eager to increase his public favorability. On Monday, 10 May, Gov. Newsom announced that the state would see a historic budget surplus of over 75 billion dollars for the next fiscal year. This week Newsom is unveiling key pieces of stimulus legislation that will be presented to the state legislature on Friday. Dubbed the California Comeback Plan, the $100 billion proposal includes funding to send $600 direct payments to 80% of California residents.
How will unemployment tax break refund be sent in two phases by the IRS?
Around 40 million people received unemployment benefits in 2020 which are taxed by the federal government and some states, which may have come as a surprise to many who had never received out of work compensation. To give those who were unfortunate to lose work during the crisis some breathing room Congress included a tax break on jobless aid received in 2020.
The American Rescue Plan passed in March included a $10,200 tax waiver per individual and up to $20,400 per married couple filing jointly for those who claimed unemployment compensation in 2020. The bill was enacted with the 2021 tax season underway and some 55 million taxpayers had already filed their taxes the week prior to 11 March according to IRS data.
Starting in May and into summer, the IRS will begin to send tax refunds to those who benefited from the $10,200 unemployment tax break for claims in 2020.
$1,000 stimulus check for Florida first responders: how many people will get it?
Florida Governor Ron DeSantis announced last week that first responders in the state are to receive a $1,000 'pandemic bonus'.
"Supporting our law enforcement and first responders has been a top priority for my administration, and it has never been more important than over the last year," DeSantis said. "As a state, we are grateful for their continued service to our communities."
When will SSI recipients receive the Golden State Stimulus?
As part of the Golden State Stimulus, a one-time $600 Golden State Grant is to go out to Supplemental Security Income/State Supplementary Payment recipients, and CalWORKs and Cash Assistance Program for Immigrants beneficiaries.
The timeline for this $600 stimulus check has not yet been announced, but California Department of Social Services spokesman Jason Montiel said: "We hope to begin issuing payments this summer.”
Wisconsin will be sent less stimulus money due to improved unemployment numbers
American’s Dairyland which was set to receive $3.2 billion under the $1.9 trillion stimulus package enacted in March will see that amount get a $700 million haircut. On Monday the Treasury Department informed the state that the final allocation will instead be $2.5 billion, paid out in two installments with the second to be sent next year.
Like other states the unemployment rate soared during the pandemic however the state’s unemployment rate in March was 3.8%, compared with 3.5% in February 2020. The Treasury can withhold funding based on a state's unemployment rate.
Tyson raises wages to keep workers on the job
Tyson Foods says that government stimulus payments, health care concerns and child care issues are pushing absenteeism and worker turnover at its plants. Absentee rates are around 50% higher than they were before the pandemic. To combat this it is raising pay and offering more flexible schedules.
Biden stimulus package raising wages and hiring perks
The American Rescue Plan passed in March among other things extended unemployment benefits until September. This, along with $1,400 stimulus checks, is currently being blamed for a dearth of job seekers in low-wage jobs as businesses prepare for the summer reopening and hopefully an increase in business.
However, there has been the knock-on effect of larger employers raising wages to $15 per hour to attract new hires. Other businesses that don’t want to be shackled with higher payroll costs should the rise in business be temporary are experimenting with other benefit schemes.
As for the White House they see the increase demand for fairer pay as a road to swifter economic recovery. "My expectation is that, as our economy comes back, these companies will provide fair wages and safe work environments. And if they do, they'll find plenty of workers and we're all going to come out of this together better than before," Biden said Monday.
Stimulus money is beginning to arrive for states and local governments
States, counties and cities across the country were expected to be receiving their first installment payments under the American Rescue Plan by today to help stimulate and revive their economies after the shutdown caused by the covid-19 pandemic.
The $1.9 trillion plan passed by Democrats in Congress provides $350 billion in emergency funding to state and local governments. In the first of two payments, the City of Birmingham just got $74.41 million from the federal government.
What ID can I use to cash stimulus checks?
If you want to cash your stimulus check you can do so at banks even where you are not an account holder or member, but you will need to bring ID.
Sheriff department warns man trying to cash stimulus check with fake ID
WTVA - The sheriff’s department, in Monroe County Mississippi issued a warning Tuesday advising businesses to be on the lookout for Daniel Paul Ryan. On Monday, Ryan reportedly tried to cash the check in the name of Terry Leon Brandon.
All students eligible for higher education emergency relief from stimulus bill
For those that have questions about the Higher Education Emergency Relief Fund (HEERF), the Department of Education released guidelines for how it will apply. As Katie McGee from the Texas Tribune points out, all students who are or were enrolled in an institution of higher education during the covid-19 national emergency are eligible for emergency financial aid grants from the HEERF, including undocumented students.
This also applies regardless of whether they completed a Free Application for Federal Student Aid (FAFSA) or are eligible for Title IV. However, institutions must ensure that funds go to students who have exceptional need.
Recent stimulus impacts special needs plans
The latest round of stimulus checks have hit the bank accounts of millions of eligible Americans. This set of economic impact payments was authorized by the American Rescue Plan Act of 2021. While stimulus checks are not new, the 2021 act is different from previous pandemic relief bills in that it includes new provisions that support individuals with disabilities. Thanks to these provisions, many in the special needs community, such as disabled dependents, who may not have qualified for previous payments, are now eligible for stimulus payments.
Is a $3600 stimulus check coming?
President Joe Biden's American Rescue Plan passed through Congress back in March and, along with a rapid rollout of the covid-19 vaccines across the country, it has served to bring some financial relief to American families feeling the pressure of the effects of the pandemic.
As part of that relief package, a further round of stimulus checks was signed off - with a value of up to $1,400 for eligible individuals - and within two months there has been around 386 billion dollars worth issued out. These checks, predominantly and speedily sent via direct deposits, followed on the back of those of the same value from the CARES Act about a year previous, and the $600 checks issued in the final days of Donald Trump's administration.
How much unemployment benefits will I get in New York?
New York is preparing to reopen before the end of May to get the state back to work and rebuild the economy after it was decimated by the pandemic lockdowns. There has already been good news with the state reporting an eighty-six percent drop in first-time unemployment claims in March.
Despite the drop in initial claims, the state’s unemployment rate of 8.5 percent is still higher than the national average which crept back up in the most recent US Department of Labor jobs report. So for those that need to claim jobless aid how much can they expect to get?
Jobs report shows more stimulus isn't the answer
Friday’s Labor Department employment report for April was a shocker. Instead of the anticipated million-plus new jobs and continued declines in the unemployment rate, the economy created only 266,000 jobs and the unemployment report crept upward by 0.1 percent.
What happened? Supply problems, not demand, drove the disappointing report and Congress needs to take to heart the risks that recent policy has created and design future policy accordingly.
Demand for goods and services, and the labor that produces them, appears to be no problem at all. Consumer spending has been rising sharply - 10.7 percent (at an annual rate) in the first quarter of 2021 and households have experienced rising incomes and wealth over the past year.
Online petition for more payments
Millions of Americans have signed online petitions calling for monthly payments until the coronavirus pandemic ends.
Why weren’t the funds from the $3000/$3600 child tax credit sent with the stimulus check payments?
The digital payment infrastructure needed to send these payments differ in many ways. The stimulus check sent by the IRS in March/April was the third the tax authority distributed to millions in the US. There is only one major variable the IRS is looking for when sending these payments -- the recipient’s income. If it is under the eligibility threshold, they are mailed a check.
The enhancements made to the child tax credit under the American Rescue Plan, completely change the way these payments are distributed. Before the passage of the stimulus, the child tax credit was claimed during tax season and the funds were distributed with one’s tax return. Now, the payments for the credit will be made on a monthly basis. In order to be able to determine and send these payments, an online portal had to be built and the IRS needed time to staff up the department.
Read the full story here.
When will the IRS finish making stimulus payments?
The IRS has until December 2021 to send all stimulus checks but many believe with the pace of delivery the tax authority will finish the job before then.
Where is my Golden State stimulus? How to check & track
The Franchise Tax Board in California is distributing stimulus checks to the value of $600 or $1,200 to eligible residents of the state.
Get the lowdown on when your check can be expected to arrive
How to claim your missing stimulus check
A reminder that if you qualified for the first or second stimulus check but didn’t receive it - or weren't sent the full amount you were due - you can get the money you’re owed when you file your 2020 tax return.
To do so, you need to claim a Recovery Rebate Credit as part of your return.
The IRS has put together this information sheet on how to claim a Recovery Rebate Credit.
You can also check out this video explainer:
US unemployment benefits federal tax waiver: how to claim
As part of the $1.9tn American Rescue Plan, qualifying unemployment-insurance recipients will get a tax break on the first $10,200 of benefits they were paid in 2020.
Find out more about how you can claim you tax waiver in your 2020 tax return
$1,100 Golden State stimulus in California eligibility: who qualifies for it?
California Governor Gavin Newsom is proposing a round of $600 checks for earners up to $75,000 a year who didn't receive the first Golden State Stimulus payment, while an additional credit of $500 would also be available to families with children.
Over 2.1 million have signed petition calling for recurring $2,000 stimulus checks
A little under 2.16 million people have now signed a Change.org petition urging Congress to approve recurring stimulus checks in the US until the end of the coronavirus pandemic.
Colorado restaurant owner Stephanie Bonin set up the petition last year, declaring: “Supplying Americans with monthly support until they can get back on their feet can save our communities from financial ruin.”
She is calling for adults in the US to be given $2,000 a month, with children receiving $1,000 payments.
At the time of writing, the petition had accrued 2,156,517 signatures.
In a recent update to the introduction to her petition, Bonin added: “Moving forward Congress needs to make recurring checks automatic if certain triggers are met.”
A recent report by Newsweek suggests automatic stimulus checks are under consideration.
Which states require people to return unemployment benefits that were wrongly claimed?
In the early days of the pandemic, a mix of inexperienced claimants and overwhelmed state unemployment agencies led to mistakes and a rash of overpayments.
How much were the first, second and third stimulus checks and when were they sent out?
There have been three rounds of federal stimulus aid in the US since the start of the pandemic, under two different administrations.
Child Tax Credit: calculate how much you qualify for
Forbes magazine has created a helpful Child Tax Credit calculator so that parents can work out how much they'll be entitled to as part of the expanded economic-aid measure.
Expanded Child Tax Credit: general info and when to expect
As part of the expanded Child Tax Credit, which will give eligible households up to $3,600 per child per year, parents can opt to receive half of their money in monthly instalments. According to the IRS, these payments are due to start going out in July.
Find out more about the distribution timeline for the $3,000/$3,600 expanded Child Tax Credit
Further information on the $3,000/$3,600 expanded Child Tax Credit
(Photo: Scott Olson/AFP)
When to expect unemployment tax break refund: who will get it first?
As part of President Biden's $1.9tn covid-19 aid package, qualifying Americans have been given a tax waiver on the first $10,200 of unemployment benefits they received in 2020.
Find out more about when beneficiaries can expect their tax refund
California Stimulus Check: how many people will receive the payments according to Newsom?
California Governor Gavin Newsom says the expansion of the Golden State Stimulus payments scheme means 80% of taxpayers in the state will now qualify for a check.
What ID can I use to cash stimulus checks?
If you want to cash your stimulus check you can do so at banks even where you are not an account holder or member, but you will need to bring ID.
When will SSI recipients receive the Golden State Stimulus?
As part of the Golden State Stimulus, a one-time Golden State Grant is to go out to Supplemental Security Income/State Supplementary Payment recipients, and CalWORKs and Cash Assistance Program for Immigrants beneficiaries.
The timeline for this $600 stimulus check has not yet been announced, but California Department of Social Services spokesman Jason Montiel said: "We hope to begin issuing payments this summer.”
Golden State Stimulus: How to claim the extra $500 under the California Comeback Plan
California’s governor has announced a plan to send $600 direct payments to many residents, but who qualifies for an additional $500 check?
New California stimulus check doesn't include people who received the first one
According to this fact sheet released by the California governor’s office, the new round of $600 stimulus checks included in Gavin Newsom's fresh relief plans would only go out to Californian households that earned up to $75,000 in 2020 but did not get the first Golden State Stimulus payment.
However, the additional $500 for families with children announced as part of the California Comeback Plan does appear to apply to both groups.
(Image: www.gov.ca.gov)
Check out all our news pieces on stimulus checks
In our dedicated stimulus checks news section, you’ll find a wide range of articles providing news on a possible fourth stimulus check, as well as information on the third round of checks currently going out to eligible Americans.
We also have articles on other economic-aid measures such as the Golden State Stimulus in California, the $1,000 ‘pandemic bonus’ for first responders in Florida, and more.
What else does the California Comeback Plan include?
As well as expanding the Golden State Stimulus checks scheme, Governor Gavin Newsom’s California Comeback Plan includes $5.2 billion in relief for low-income renters, helping to cover their back-rent and their rent for several months into the future, and $2 billion in assistance on overdue water and utility bills.
Tax filing 2021: when is the last day to file in May?
The normal Tax Day of 15 April was postponed for a second year in 2021 to give taxpayers, tax preparers and the IRS time to take into account the numerous changes made to the federal tax code with the passing of the American Rescue Plan.
Taxpayers have just a few days left to get their papers in order and file or ask for an extension until 15 October. With the exception of those who were affected by severe weather events, filers will need to get their tax return to the IRS by Monday 17 May.
California Governor Gavin Newsom during Monday's announcement of a $100 billion economic recovery package for the state that would include an expansion of the Golden State Stimulus payments program.
(Photo: Justin Sullivan/Getty Images/AFP)
Do you need to work to claim the child tax credit?
With payments for the enhanced child tax credit slated to begin in July, questions around work requirements and claiming the benefit have arisen.
Third stimulus checks: how many payments were made in the last batch?
The IRS has now sent out eight batches of third stimulus checks as part of the economic-aid scheme, with its latest payment run seeing over 1.1 million checks distributed to qualifying Americans.
If you’re still waiting for your third stimulus check, remember that you can track its status by accessing the IRS’ online Get My Payment portal.
More information about Get My Payment
(Image: www.irs.gov)
$1,000 stimulus check for Florida first responders: how many people will get it?
Florida Governor Ron DeSantis announced last week that first responders in the state are to receive a $1,000 'pandemic bonus'.
"Supporting our law enforcement and first responders has been a top priority for my administration, and it has never been more important than over the last year," DeSantis said. "As a state, we are grateful for their continued service to our communities."
Golden State Stimulus Check: What is the “California Comeback Plan” and who is eligible?
California Governor Gavin Newsom has announced plans to send out stimulus checks to more residents after the state recorded a budget surplus of around $75bn. The expanded direct-payments program would represent the "biggest state tax rebate in US history", Newsom said.
$1,100 Golden State stimulus in California eligibility: who qualifies for it?
California’s Franchise Tax Board is in the process of sending out up to $1,200 payments to eligible residents with 2.5 million delivered so far. Now Governor Gavin Newsom wants to send more checks, this time reaching around two thirds of the population as part of his proposed $100 billion California Comeback Plan.
His plan, which will still need to be approved by the Democratic-controlled state Legislature, aims to triple the Golden State Stimulus “to get money in the hands of more middle-class Californians.”
Full story on the expansion of California's Golden State Stimulus
US stimulus checks live updates: welcome
Hello and welcome to our live blog providing updates on a possible fourth stimulus check, as well as information on the third round of checks being sent out as part of President Biden's $1.9tn American Rescue Plan.
We'll also bring you news on other economic-aid measures in the ARP, such as the $3,000/$3,600 Child Tax Credit and enhanced unemployment benefits.
In addition, there'll be updates on expanded Golden State Stimulus program announced by California Governor Gavin Newsom, which will see a greater number of residents of the state qualify for a direct relief payment.