Fourth stimulus check news summary: Friday 14 May 2021
US stimulus checks live updates: Friday 14 May 2021
- Around 165m third stimulus checks distributed so far, according to IRS (full story)
- Latest third-stimulus-check payment run includes 460,000 'plus-up' checks
- Legislation passed in NY protecting stimulus checks from debt collectors
- Automatic stimulus checks considered in Washington (what has White House said about fourth check?
- California Gov. Newsom proposes expanding Golden State Stimulus payment scheme (who would qualify?)
- Californian households with children would receive $500 additional payments (full details)
- Monthly Child Tax Credit payments due to start going out in July (how does CTC differ from stimulus check?)
- IRS deadline for filing federal tax return on Monday 17 May (find out more)
- You can track the status of your third stimulus check by going to the IRS' Get My Payment portal
Take a look at some of our related articles:
One million more stimulus checks sent out this week
The IRS sent out just under one million third stimulus checks as part of its most recent payment run, the agency said earlier this week. In total, it has now distributed about 165 million checks of up to $1,400, with an overall value of $388 billion.
(Photo: Nicholas Kamm/AFP)
The current round of stimulus checks being distributed by the US federal government is the third to have been approved by Congress since the coronavirus pandemic began early last year.
The Internal Revenue Service continues to distribute the third round of direct federal payments, but President Joe Biden is reportedly considering further stimulus checks automatically paid out if certain economic conditions are met.
Stimulus checks could make a difference for vaccine deniers
As states look to come up with their own ways to incentivise residents into getting a covid-19 vaccine, evidence suggests that tying the recent third stimulus check payments to the vaccination could have made a major difference. A new study of nearly 1,200 unvaccinated Americans found that nearly 60% of them would probably encourage them to get the shot.
There have been calls for a fourth stimulus check to be restricted to vaccinated Americans, but enforcing such a measure would likely lead to legal challenges.
To date, the federal government has authorised three rounds of stimulus checks, which are essentially just advanced payments of the Recovery Rebate Credit. They have been the most popular form of direct financial relief throughout the pandemic and are tied to tax return information.
The latest round of stimulus checks, worth up to $1,400 per person, must be paid out by the Internal Revenue Service (IRS) before the end of the year. However, like the previous two EIPs, taxpayers will be able to claim any money they were underpaid this year when they file in 2022.
More details emerge of the Californian stimulus package
After announcing a significant budget surplus earlier this week, California Governor Gavin Newsom has unveiled another state-wide relief bill which will expand stimulus check eligibility to more of the population. An estimated two-thirds of residents will receive a stimulus check this time around.
The announcement confirms that the Californian Comeback Plan will provide "immediate cash to middle class families & businesses hit hardest by the pandemic, expands the Golden State Stimulus to middle class families, creating the biggest state tax rebate in American history."
Millions of Americans received unemployment benefits in 2020 and a fair number of them filed a tax return prior to the passing of the American Rescue Plan which provided unexpected tax relief on those benefits.
Consumer spending stalls after stimulus check boost
The first few months of 2021 saw unparalleled levels of federal spending to reignite the pandemic-hit economy, much of which came from two rounds of stimulus checks in just three months. The $600 emergency payment was followed by the $1,400 third stimulus check to provide a boost for the retail sector.
However it appears that the short-term boost is beginning to fade and retail sales has performed worse than expected over the past month.
Tax deadline for Tennesseans affected by severe spring weather get filing extension
The IRS announced today that victims of this spring's storms and tornadoes in Tennessee will have until August 2, 2021, to file various individual and business tax returns and make tax payments, the Internal Revenue Service announced today. The IRS is providing this relief to taxpayers affected by storms, tornadoes, and flooding that took place between March 25 and April 3, 2021 following the recent disaster declaration issued by FEMA. The tax relief postpones various tax filing and payment deadlines that occurred starting on March 25.
The Internal Revenue Service (IRS) said that it would start sending tax refunds to those eligible for the $10,200 unemployment tax waiver this week and continue through the summer. The IRS is adjusting returns in two phases and the complexity of your tax return will determine how long you have to wait to see your refund.
IRS announces tax refunds will begin for unemployment tax waiver
In a press release on Friday the Internal Revenue Service announced that payments would begin this week for the first phase of recalculations the tax agency is making to tax returns for those that claimed unemployment benefits in 2020. As per the statement:
WASHINGTON — The Internal Revenue Service will begin issuing refunds this week to eligible taxpayers who paid taxes on 2020 unemployment compensation that the recently-enacted American Rescue Plan later excluded from taxable income.
The IRS identified over 10 million taxpayers who filed their tax returns prior to the American Rescue Plan of 2021 becoming law in March and is reviewing those tax returns to determine the correct taxable amount of unemployment compensation and tax. This could result in a refund, a reduced balance due or no change to tax (no refund due nor amount owed).
These corrections are being made automatically in a phased approach, easing the burden on taxpayers. The first phase is underway and includes the simplest returns. The next phase will include the more complex tax returns which the IRS anticipates will take through the end of summer to review and correct.
Proud Boys leader received $15K in PPP stimulus loans
The Guardian reveals that Government records show that Enrique Tarrio, chairman of the far-right Proud Boys group, received two federal government-backed paycheck protection program (PPP) loans worth a total of $15,500. The loans were issued to Henry Tarrio, an anglicized form of his name which he has used on other occasions.
In the loan documentation, which was obtained by the news non-profit ProPublica, after a Freedom of Information Act battle with the Small Business Administration, Tarrio is described as an independent contractor, working in the “Security Systems Services” industry, but the document names no associated business entity.
The Proud Boys began as an organization protesting against political correctness and boosting their idea of masculinity and grew into a rightwing group that embraced street fighting. Earlier this year Canada named it as a terrorist entity. It is seen as having played an important role in the 6 January attack on the Capitol in Washington DC.
The IRS gave taxpayers a little more time in 2021 to file a tax return but that extra time is just about up. You will need to file and pay any taxes owed on or before 17 May. But if you still need more time, you can file for an extension by the same date.
If you are planning to send your tax return or a request for an extension by post, depending where you live and which tax form you are sending, the IRS has different locations to send paper returns.
Governor Gavin Newsom announced at the start of this week, the California Comeback Plan. In the latest stimulus plan for the state Newsom proposes using an unexpected revenue surplus to expand the $600 Golden State Stimulus payment scheme to include a greater proportion of the state's population.
The program would also include extra payments of $500 for households with children.
Retail sales flat in April after gangbusters March
After a spectacular rise in retail sales in March riding a wave of stimulus money as the $1,400 stimulus checks began hitting bank accounts, April’s numbers saw no new growth. Economists had expected more modest growth this month compared to March but the 0.8% increase forecast didn’t materialize.
Is the US economy is hitting headwinds?
CME Group examine if the effects of the stimulus money in the US economy is beginning to peter out.
The monthly direct payments of the new expanded Child Tax Credit are due to start in July according to the IRS. Qualifying households are set to receive checks of $250 to $300 per child depending on age throughout the second half of 2021.
Parents will have a second option as well once the program is activated. They can choose to receive their Child Tax Credit in a lump sum of up to $3,600 in 2022.
New York congressman takes issue with use of Stimulus funds
US Representative John Katko from New York disapproves of how the City of Syracuse plans on using $75,000 of stimulus money from the American Rescue Plan. The city council approved using stimulus funding for a mural honoring local basketball legends. They include Breanna Stewart, Manny Breland, Earl Lloyd, and Dolph Schaye.
“COVID-19 relief funding should aim to help our families, small businesses, and healthcare providers emerge from this pandemic. I support honoring Syracuse basketball legends, but putting COVID aid towards a mural while many in our community struggle is irresponsible and misguided,” says Congressman John Katko (NY-24).
California stimulus bill includes $7 billion for broadband
Governor Gavin Newsom has unveiled his $268 billion California Comeback Plan over the past week crisscrossing the state to highlight new features of the plan. As in other stimulus proposals across the US, investment in broadband will get a good chunk of the money in the bill to the tune of $7 billion to expand access to underserved communities.
Now Newsom and lawmakers have a month to negotiate details of the budget proposal. The state legislature will have until 15 June to pass the bill and get it to the Governor’s desk for him to sign.
The deadline for 2021 IRS tax filings is drawing closer and the majority have tax-payers have already completed their tax returns for the past year. This year the deadline has been extended by just over two months, meaning that the new date by which to get your tax returns in is Monday 17 May.
The covid-19 economic crisis has created a complicated tax situation leading many filers to request an extension, but can you be penalized? The IRS can issue financial penalties for late tax returns. Failure to file may also affect upcoming stimulus check and Child Tax Credit payments.
Newsom’s $268 billion stimulus plan for California
SacBee - Facing a recall election later this year, Gov. Gavin Newsom proposed pouring tens of billions of dollars into California’s struggling economy as part of his revised May budget proposal, which he unveiled Friday.
The plan would direct billions in spending toward infrastructure, stimulus checks for residents, aid for the homeless and an expansion of health care for undocumented immigrants. Newsom’s entire budget proposal totals $267.8 billion, relying on a $75 billion surplus from tax revenue and $27 billion in stimulus funds from the federal government.
The IRS has sent out 164 million stimulus payments totaling more than 386 billion dollars. The tax authority has also stated that payments for the enhanced child tax credit (CTC) will begin in July.
With millions of families awaiting funds from the enhanced child tax credit, many are wondering why the payments weren’t sent with the latest stimulus check?
The US federal government has authorized three separate Economic Impact Payments (EIP) over the past year, more commonly known as stimulus checks. These are advanced payments of the Recovery Rebate Credit, two of which were for the 2020 fiscal year and the third for the 2021 fiscal year.
If you want your stimulus money that is due to you this year, you will need to file your 2020 tax return this year and Tax Day is quickly approaching. However, because they are refundable tax credits you may be able to get any that was left on the table from this year with next year's refund.
Registration is now open to claim a monthly $50 coupon towards your internet bill along with other aid as part of the Emergency Broadband Benefit.
BYU higher education institutions refuse federal stimulus funds
Desert News - Four Latter-day Saint-owned colleges and universities now have turned down a total of $333 million in federal stimulus checks during the pandemic.
A year ago, Tad Walch wrote about how Brigham Young University in Provo, Utah, and its sister schools BYU-Idaho, BYU-Hawaii and Ensign College, formerly known as LDS Business College, had turned down a combined $54.1 million allocated for them in the CARES Act, signed into law by then President Donald Trump in March 2020.
Why are the schools turning down the federal funds? Find out here
You got mail, or should, regarding your $1,400 stimulus check
You already got your third stimulus check, so why is the IRS sending you a letter now? Up to this point, the IRS has made 165 million stimulus payments either by direct deposit or in the mail. However, if you believe you didn't get the correct payment amount or if you haven't received a payment yet, don't toss the IRS letter signed by President Joe Biden when you get it.
California Comeback Plan will give Californias more stimulus checks and more
California Governor Gavin Newsom announced a new proposal on Monday 10 May that would include a $600 direct payment for 80% of taxpayers in the state. The “California Comeback Plan” will also include additional payments valued at $500 for undocumented families and taxpayers with dependents.
In order to receive the payments, the proposal must be passed by the state legislature.
Lawmakers will receive the full proposal Friday 14 May and the governor is hoping to see the legislation approved by mid-June. If approved, payments would begin being disbursed shortly after based on tax information provided this year. The deadline to file taxes in California is 17 May.
Tax Day for 2020 tax returns is fast approaching
Federal Tax Day is Monday, 17 May this year but not all states changed their tax filing to coincide with the federal date.
The Des Moines Register reminds its readers and all Iowans that for state income taxes, the Iowa Department of Revenue has delayed the deadline to June 1 from April 30. Filers can, as always, request an extension for filing both federal and state paperwork. Filers would then need to submit their papers by Oct. 15.
However, an extension does not provide more time to actually pay income taxes. The reprieve is only to help people sort out paperwork issues, and they may still owe penalties and interest on payments not mailed by the original filing deadline.
To check out the regulations for your state check here.
Tax Day 2021 is fast approaching, but for those who still need a little more time, the IRS allows for an extension until 15 October. However, you’ll need to act now if you want to get one.
As part of the $900bn coronavirus relief package passed by Congress in December, Americans can get a $50 discount on their monthly internet bill.
Many unvaccinated Americans would be persuaded to get shot by financial incentive - poll
A Morning Consult poll has found that 44% of unvaccinated adults in the US are nervous about the long-term effects of a covid-19 vaccine, but that 57% would either definitely or probably get a shot were they rewarded for doing so with a “large financial incentive, like a $1,000 savings bond”.
Some states have offered Americans an incentive to get vaccinated, with, for example, West Virginia offering a $100 savings bond to young people, and New Jersey and Connecticut giving out free beers.
In recent months, former congressman John Delaney has suggested handing out $1,500 stimulus checks in exchange for being vaccinated, amid widespread vaccine hesitancy in the US.
"We have to create, in my judgment, an incentive for people to really accelerate their thinking about taking the vaccine," Delaney said last year.
California's Franchise Tax Board is distributing stimulus checks for $600 or $1,200 to eligible residents of the state. Find out when you can expect to receive your check
Three federal stimulus checks have so far been approved and distributed in the US since the coronavirus pandemic began in early 2020.
Asked earlier in May about the possibility of more stimulus checks being approved in either the American Jobs Plan or American Families Plan, White House press secretary Jen Psaki told a press briefing: "We’ll see what members of Congress propose, but those are not free."
Americans receiving the third stimulus check by direct deposit are seeing their money land in their bank accounts with the identifying reference "IRS TREAS 310 - TAX EIP3".
The IRS says it will be sending out tax breaks on 2020 unemployment benefits in two batches, with Americans who filed an individual tax return receiving their money first, followed by those who submitted joint or more complicated returns.
People in the US who received unemployment insurance last year are to be given a tax waiver on the first $10,200 of benefits they were paid.
Check out AS English's stimulus-checks news section
In our dedicated stimulus-checks news section, you’ll find articles offering news on a possible fourth direct payment, as well as updates on the third round of checks currently going out.
We also have articles providing information on the Golden State Stimulus payments being distributed in California, where Governor Gavin Newsom has proposed expanding the scheme to a greater number of residents of the state.
How stimulus checks impact on the economy
This Vox video uses the analogy of a fish tank to explain how stimulus checks can help an economy - and why some experts have expressed concern that too many direct payments in too short a period could potentially lead to excessive levels of inflation:
Millions of Californians can expect another stimulus check
California had a record budget surplus in 2021, on top of expected federal stimulus money, which has enabled Governor Gavin Newsom to propose his $100 billion covid-19 relief bill for the state. Part of his proposal is “the biggest state tax rebate in American history,” allocating nearly $12 billion to direct payments.
The new tax rebate will include millions who didn’t receive a $600 stimulus check in the previous Golden State Stimulus enacted in February. It’s estimated that around 11 million taxpayers will receive a $600 payment in the latest round of Golden State Stimulus.
(Photo: Justin Sullivan/AFP)
Three House Dems look to raise Child Tax Credit income limit for heads of household
A bill introduced by three progressive House Democrats on Thursday seeks to make it possible for more single parents to claim the full expanded Child Tax Credit.
Katie Porter (D-Calif.), Ayanna Pressley (D-Mass) and Don Beyer (D-Va) have tabled the Single Parent Penalty Elimination Act, which proposes raising the Child Tax Credit income threshold for people who file taxes as heads of household, a tax status commonly used by single parents.
While married joint tax filers who earn up to $150,000 a year qualify for the full Child Tax Credit amount of $3,000 per child aged six to 17 and $3,600 per child aged under six, Americans who file taxes as heads of household are only eligible for the full figure if their annual income is under $112,500.
"There is no single-parent discount for groceries, child care or doctors' bills," Porter said in a statement.
"The child tax credit exists to improve children’s well-being. No child should have fewer opportunities for nutritious food, good housing and quality care because her parents are not married."
Tax Day coming up
Individual taxpayers in the US have until this Monday, 17 May, to file their federal tax return for the 2020 tax year.
See also: Find out how to apply for an extension
Child Tax Credit calculator
If you're not sure how much you're entitled to as part of the expanded Child Tax Credit, you may find this CTC calculator created by Forbes magazine is of use to you.
The IRS has said monthly payments of the new, expanded Child Tax Credit are due to start in July, with qualifying households set to receive checks of up to $300 throughout the second half of 2021.
Parents can also opt to receive their Child Tax Credit in a lump sum of up to $3,600 in 2022.
Governors in 14 states have announced they will be ending additional unemployment benefits in June.
Announced at the start of this week, the California Comeback Plan proposes expanding the $600 Golden State Stimulus payment scheme to include a greater proportion of the state's population.
The program would also include extra payments of $500 for households with children.
Known as the Emergency Broadband Benefit, a new government program that provides assistance to pay for internet access is now available to low-income households.
Track your stimulus check with Get My Payment
If it hasn't landed yet, you can track the status of your third stimulus check by accessing the IRS' online Get My Payment portal.
You'll also find a helpful Get My Payment FAQs page on the IRS website.
IRS sends out 1 million more Economic Impact Payments
The IRS said in its most recent payment update on Wednesday that it had sent out just under one million more third stimulus checks, taking the total amount of checks distributed to around 165 million, at an overall value of $388 billion.
(Photo: Nicholas Kamm/Reuters)
The IRS continues to send out the third round of direct payments but President Biden is reportedly considering introducing economic triggers for further checks.
US stimulus checks live updates: welcome
Hello and welcome to our daily stimulus-checks live blog, in which we'll endeavor to provide you with the latest news on a possible fourth direct payment, in addition to keeping you abreast of the latest updates and information on the third round of checks currently being sent out to qualifying Americans.
You'll also find news on the Golden State Stimulus payments going out in California, and info on Governor Gavin Newsom's proposed expansion of the scheme to more residents of the state.
Furthermore, this live blog will also cover economic-aid measures such as the expanded Child Tax Credit, which is to give eligible households up to $3,600 per child per year, with monthly payments due to begin in July.