Fourth stimulus check live updates: can it be approved in June? $3,000/$3,600 Child Tax Credit, tax refund...
US stimulus checks latest news live: Wednesday 16 June
Headlines:
-Will decreases in retail spending by consumers impact the passage of a fourth stimulus check? (Full details)
- Dollar holds near one-month high with focus on Fed's inflation take
-Which organizations favor of another round of stimulus checks? (Full details)
- IRS to hold Digital Day webinar tomorrow
- Faster U.S. wage rises will help entrench inflation
- IRS has confirmed that the monthly payments will begin from 15 July
- $10 billion fund for homeowner stimulus checks (How to apply)
- White House announces Child Tax Credit Awareness Day for Monday 21 June
- Many US taxpayers still waiting for tax refund (find out more)
- Twenty-five US states, all GOP-led, are ending supplementary unemployment insurance early (full story)
- You can track your third stimulus check by using the IRS' online Get My Payment tool
Have a read of some of our related news articles:
What is IRS TREAS 310 and how is it related to 2020 tax returns?
Millions of Americans are noticing a new payment in their bank accounts, listed simply as IRS TREAS 310 in their transactions. Despite the fact that not everyone receiving the payments will have been aware that they were coming, this code refers to an IRS tax refund.
Usually you would have to submit a claim on your annual filing to receive a tax refund, but a new clause included in the recent stimulus bill has opened it up for many more people this year. Here's everything you need to know about the source of that payment...
Fourth stimulus check: what organizations are in favor of a new payment?
Support for more stimulus checks among lawmakers peaked in May as an additional group on Capitol Hill sent a letter to the President urging him to include a fourth and even fifth payment in his American Families Plan. The House Ways and Means Committee signatories cited the public support for the measure and how “direct payments and enhanced unemployment insurance (UI) in particular have served as lifelines to families and workers that have had their lives upended by the pandemic.”
In response to the letters and questions from the media, the White House has said that they will not be a roadblock in passing additional stimulus checks. Still, they have stated that the President is more focused on getting his greater economic agenda passed.
Stimulus checks provide boost for black-owned businesses
Economics researchers have found that the stimulus checks have not only helped individuals and families cover the most immediate costs like food, rent and childcare, but has also helped many entrepreneurs set up their own businesses.
The report found that the stimulus checks were particularly effective for businesses set up in black neighbourhoods, offering the crucial start-up capital that can sometimes be hard to find. This will strengthen calls for a fourth stimulus checks and shows that the payments can influence the economy in countless ways.
How to get updates on your outstanding stimulus check payments
The IRS is continuing to make stimulus check payments for the rest of 2021, working through the outstanding tax returns to find anyone who may be entitled for another payment. Those who suffered a loss of income during 2020 may find that they are now eligible for a larger payment and a supplementary 'plus-up' stimulus check payment could now be on its way.
Vast majority said stimulus checks improved their financial health
In a recent study released by doxoINSIGHTS 95% of those questioned said that the three rounds of stimulus checks had made a notable improvement to their finances during the pandemic. The White House has been tight-lipped on the prospect of a fourth stimulus check but there is a clear desire across the country for further direct support.
Jim Kreyenhagen, doxo’s Vice President of Marketing and Consumer Services, said of the findings: "While stimulus relief may have seemed short term, our surveys of household bill payers throughout the last year have indicated support from Americans, and a strong signal they used the money to improve their financial health."
Child Tax Credit for non-filers: how and when to sign up
The IRS have confirmed that the new Child Tax Credit programme will begin next month when the tax authority starts distributing the monthly payments from 15 July. The are high hopes about the impact that the new system can have, but it had been difficult for some households to register for the direct payments.
As was the case with the past three rounds of stimulus checks, eligibility for the federal support will largely be based on information provided in your most recent tax return. The payments will arrive automatically for most recipients but some low-income households may have to use the IRS’ new non-filer sign-up tool to ensure they get the payments.
Americans can still claim stimulus checks
The IRS recently brought the "Non-Filers" online tool back to life with more options for Americans who aren't required to file a tax return. The new online portal will allow those who haven't filed a 2020 tax return or used the previous version of the tool the chance to claim stimulus checks that they missed out on, and for parents to sign up for the enhanced 2021 Child Tax Credit that will begin direct payments on half the credit in July.
Reasons people are still looking for their stimulus check
The US government has sent out three rounds of stimulus checks with eligible adults receiving up to $3,200 each in total over the past year. The majority of Americans got at least some stimulus money, but no everyone got a stimulus check. There are several reasons that you may not have gotten the full $3,200 or your child didn’t get the full $2,500 that was possible.
Each round had similar thresholds where the amount of money would begin to phase out but how fast it did to zero was different. But in order to receive any stimulus money, the IRS had to know your financial situation and where to send the funds.
To find out why you might not have received the full amount click here.
Debit cards will not be used to disburse 2021 Child Tax Credit in July
Parents around the US can expect to start seeing advanced payments on the enhanced Child Tax Credit in July. The initial payments though will not be going out as prepaid debit cards which will affect those without a bank account to deposit the funds. This could see those who are unbanked or under-banked to have difficulties cashing their checks or incurring fees in order to do so.
The IRS will send the first payments as either a direct deposit or paper check according to the US Treasury. There will be an online portal to track paper checks that have been sent. It is hoped that some future payments will be made in the form of debit cards to ease the receipt of the direct payments to eligible parents for their children.
Why is the new Child Tax Credit so important for American families?
It is now less than one month until the IRS will begin sending out monthly payments as part of the new Child Tax Credit and the Democrats are continuing to push the benefits of the new programme. The White House estimates that the payments could halve the number of American children in poverty and has announced that 21 June will officially be Child Tax Credit Awareness Day to help spread the word.
New tool helps Americans claim missing stimulus checks
The new online portal set up by the IRS will make claiming federal relief much easier for low-income households who do not typically file tax returns. The portal has been introduced ahead of the introduction of the new-look Child Tax Credit next month.
The IRS say that the portal will allow non-filers to submit their information so they can receive the monthly payments as part of the Child Tax Credit, but can also be used to request a missing stimulus check payment.
IRS Commissioner Chuck Rettig said of this new development: “This new tool will help more people easily gain access to this important credit as well as help people who don’t normally file a tax return obtain an Economic Impact Payment."
Are you in line for an unemployment benefits tax refund?
The stimulus bill passed by President Biden in March included a little-known prevision that exempted unemployment benefits received during 2020 from being taxed. The first $10,200 of jobless support received during the last financial year should not have been taxed but by the time the American Rescue Plan was passed millions had already filed.
The IRS estimate that around 13 million Americans could now be eligible for a tax refund, but is facing delays to get the money out to the people. They have confirmed that another batch of payments is going out this week, might you be eligible for one?
Third stimulus check: is there a limit of batches the IRS will send?
Most Americans that were eligible to receive a third Economic Impact Payment, or stimulus check, have received at least a partial payment if not the whole amount they qualified for. However, the Internal Revenue Service is still sending out more payments weekly.
The tax agency just brought back to life its Non-Filers online tool to help those who didn't use it last year and aren't required to file a tax return claim any stimulus money that they missed out on from the three rounds of stimulus checks, along with other tax benefits for Non-Filers.
The American Rescue Plan which authorized the latest round of stimulus checks for up to $1,400 per American also gave the IRS a timetable to deliver them.
New Mexico offering stimulus to those overlooked by federal stimulus checks
Residents of New Mexico who didn’t qualify for federal Economic Impact Payments, better known as stimulus checks, could apply for financial relief from the state beginning 14 June. The New Mexico Human Services Department will started accepting applications Monday which are available at the Yes New Mexico website. All applications must be submitted by 25 June and payments will be issued by the end of July.
For more information click here
IRS tool for Child Tax Credit: link and how to use it
The Internal Revenue Service (IRS) announced on Monday that it has brought back the Non-Filer tool that was first created last year to help taxpayers who don’t normally report income claim their $1,200 stimulus check. The updated version will allow those who still haven’t filed a tax return or used the tool before, to register for the 2021 Child Tax Credit and obtain any stimulus money they haven’t received yet.
Stimulus checks brought nearly all recipients relief
A survey by doxoINSIGHTS found that Americans that received a stimulus check over the past year had their financial stability strengthened. The direct payments helped around 95 percent of participants between “a little” and “a great deal.” The majority of the money was put toward paying down outstanding bills while only 10 percent of respondents said they put their money into savings.
Those who still haven’t claimed their stimulus check have a new online tool
The IRS has relaunched its Non-Filers tool for those who still haven’t provided information to the IRS to claim their $1,400 stimulus check or “Economic Impact Payment” from this year. Through the tool individuals and families who have little or no income will be able to provide the IRS with the basic data necessary to calculate and issue a payment for this year’s stimulus check and for the previous two stimulus checks approved in 2020. The portal is part of the agency getting ready to issue advance payments on the 2021 Child Tax Credit.
GOP opposition to Biden stimulus spending hasn’t dented its popularity
President Biden’s job rating has taken a slight hit from its 54 percent approval in April, dropping to 48 percent. Surprisingly Republican voters have a more favorable view of his performance now, albeit just 19 percent but up eight points since April. These results came out in a new Monmouth University Poll.
The survey however found that despite the potential rise in consumer prices as a result of his large spending bills proposed and passed, a majority of the American public continues to support those plans. The percentage of people who see the proposals favorably has been little changed in spite of continued GOP attacks on them as spending splurges that will explode the US debt and overheat the economy.
“Concerns about possible inflation do not appear to undercut overall public support for these spending plans. That might be because many Americans expect the pros will outweigh the cons,” said Patrick Murray, director of the independent Monmouth University Polling Institute.
Fourth stimulus check: what organizations are in favor of a new payment?
Fourth stimulus check: what organizations are in favor of a new payment?
While calls from lawmakers on Capitol Hill for a fourth stimulus check have waned in recent weeks, various progressive organizations have called for more payments.
The White House has stated that they will not be a roadblock in the passage of another check. However, Press Secretary Jen Psaki said that President is more focused on passing his Build Back Better economic agenda which includes both the American Jobs Plan and the American Families Plan.
Read our coverage for details on what organizations support the passage of another round of direct payments.
What children will not be eligible to receive the Child Tax Credit?
This IRS will begin making payments for the enhanced Child Tax Credit on 15 July. However, the changes made to the credit under the American Rescue Plan will only stay in effect one year, unless lawmakers decide to extend them.
Child advocacy organizations like the Children Defense Fund (CDF) have reported that the changes to eligibility make more than 23 million children in the US eligible to receive the benefit. However, in a report released on 9 June, the organization stated that the current structure still leaves out around 300,000 children.
Why are these children left out?
The CDF states that children who “because of strict eligibility requirements known as the “child claiming” rules that deny benefits to children whose primary caregivers are more distant relatives or family friends and to children who do not live with a single caregiver for six months out of the year.”
This means that children who move between households and whose caregivers would benefit from the funds are not eligible. Many of the more than a quarter-million children excluded are “immigrants, involved in the child welfare system, experiencing homelessness, or involved with the juvenile justice system.”
What does the Child Defense Fund recommend?
The CDF is calling on Congress to make changes to eligibility that would allow caregivers to benefit regardless of “their relationship to their caregiver and the benefit should continue to support children and their families as their living arrangements change."
For more on the Child Tax Credit read our recent coverage:
-Child Tax Credit: will I have to pay back the money?
-$3,000/$3,600 Child Tax Credit: how do I know if should have received the IRS letter?
Do I need to submit Form 5498 with my tax return?
Do I need to submit Form 5498 with my tax return?
Those who have formal retirement savings plan must report information on contributions to the IRS. But, what form is needed to provide this information?
When completing your taxes, one aspect of personal wealth that must be reported on is contributions to a retirement plan, if a taxpayer has one. For individual retirement arrangements, or IRAs are they are more commonly known, a 5498 form must be submitted to the IRS. Wealth managers and other financial institutions who hold IRA retirement must provide supplemental information to that of the taxpayer.
Read our coverage for more details as well as information on the percentage of workers in the US who have a formal retirement plan.
How can employers encourage those who work for them to save for retirement?
A 2019 study conducted by the Pension Rights Center found that only around 37% of private sector and government workers had a retirement or pension plan.
What are the implications of this low rate?
People cannot, and should not, work for their entire lives. In the US, most workers retire at around 65 when they have saved enough money to sustain themselves. Additionally, most seniors receive social security benefits from which they have paid into throughout their careers. For those who have been able to save their own money, through a retirement fund or pension, social security benefits help to increase the total income they will be paid each month for the rest of their lives.
However, with such a vast sum of workers lacking access to retirement programs, the burden on the social security system is growing. Additionally, American’s are living longer and a study from the Employee Benefit Research Institute found that 40 percent of workers will exhaust their personal retirement savings before they die.
Brookings released a new report showing “50 million Americans are working full-time without any workplace saving beyond Social Security.” To combat this issue, researcher Joshua Gotbaum, suggests that the government make employers automatically enroll their employees “in a payroll savings plan (from which they can opt-out).”
Read more on what researchers are suggesting to combat the retirement shortfall here.
How would the American Jobs Plan and the American Families plan help formally incarcerated people?
The two economic proposals put forward by the Biden administration would help to decrease recidivism by providing benefits and services to support those formally incarcerated.
The United States forms roughly four percent of the global population, yet houses a quarter of the world’s prisoners. Around 2.3 million people are in jail or prison in the US, of which around half a million have not been convicted of a crime and incarcerated as they await trial.
Around 95% of those who spend time incarcerated will be released, and data shows that around 65% will return to jail after. The Center for Budget and Policy (BCPP) priorities explains that “while some of the blame is attributable to the lack of rehabilitative services in prison settings, a large body of research has concluded that a mix of discrimination, inadequate supports, and legal barriers to opportunities set returning citizens up for failure.”
Biden’s economic proposals could reduce recidivism through two main legal changes. The first would remove the lifetime ban on food assistance programs such as SNAP (food stamps) for those who were convicted of a drug-related crime.
The second would expand “subsidized employment, which is a proven tool to enable returning citizens to overcome discrimination and societal barriers to entering the workforce.”
For more on how the plans could help lower rates of recidivism, see the new blog from the CBPP.
Fourth stimulus check: can the decrease in consumer spending impact its approval?
Fourth stimulus check: can the decrease in consumer spending impact its approval?
Consumer spending in the retail sector increased almost ten percent in March. Since then, rates have declined with the April numbers increasing on .09%, their downward trend even further in May to -1.3%
Some policymakers looking at consumer spending data and the beneficial impacts direct payments have had on families in the US, support passing an additional stimulus check. However, momentum seems to be waning on Capitol Hill as the legislatures try and work out a deal over infrastructure, and other priorities, before heading home for summer recess.
Read our full coverage for details on what other economic indicators could impact the decision of lawmakers to send another round of direct payments
Stock market inches closer to record highs
One of the main indicators of the power of the stock market, the Nasdaq 100 is "hoovering" around record levels.
As far as indicator of household economic well-being, the Nasdaq does not provide much information as only half of the residents in the US have money invested in the stock market.
Why are the prices of housing increasing so quickly?
Many watching the housing market and witnessing how quickly prices are increasing are reminded of the market before the 2008 Financial Collapse. But, is the situation different? Bloomberg reports that it might in fact be a price bubble, driving up the prices of houses, not only in the US, but around the world.Full details
Tomorrow, ten senators, led by Susan Collins of Maine will unveil their bill on infrastructure, a counter to President Biden’s American Jobs Plan.
What do we know so far?
Unlike the President’s plan which will primarily be funded by increasing the corporate tax rate, the bipartisan plan will be financed through more traditional means. Additionally, lawmakers have floated the idea of applying a fee on electric vehicle drivers, which is projected to be a point of contention for climate hawks.
The President’s plan takes a wide view of infrastructure, including social aspects, while the proposal announced tomorrow will focus primarily on investments in physical infrastructure, like roads and bridges.
New York lifting covid restrictions: which ones will remain?
BREAKING NEWS: New York City becomes the fourteenth state to meet the President's seventy percent vaccination target for adults.
In light of the news, Governor Andrew Cuomo announced changes to covid-19 restrictions that will allow businesses to operate at full capacity, stimulting one of the US' largest economies.
Read our full coverage for details on what restrictions have been lifted
Are you still waiting for your tax refund?
Millions are still waiting for their tax refunds after major delays have slowed the distribution process. The IRS has been stretched extremely thin over the past 12 months with stimulus checks and a busy tax year to oversee, and it is no surprise that some things have been delayed. Millions of Americans who received unemployment benefits during 2020 are entitled to a tax refund and the IRS are sending out letters to advise them of the upcoming payment.
New York Times, reporter Coral Murphy Marcos reports on the record-breaking year the US had in relation to charitable donations in 2020. The Giving USA Foundations'' annual report, found that the economic crisis did not leave many organizations, which rely on donations without support.
What sectors contributed to the increases?
The private sector decreased donations by about 6.1%, showing that the increases are primarily due to charitable foundations and individuals. Foundations fueled the increase, donating more than $88.6 billion, or roughly 17% over 2019. Also contributing were individuals who may have opted to donate some of the money that came their way through stimulus checks. Finally, on a somber note, donations from those who passed away and directed funds to NGOs in their wills increased 10.3% over figures reported the previous year.
How has the pandemic impacted Black business ownership?
NBC reports "a significant rise in overall new business starts, and particularly concentrated in Black neighborhoods."
Economics researchers studying the impact of the three previous rounds of stimulus checks found that they may have had more long-term impacts than a sudden boom in consumer spending. For many the direct payments offered vital financial relief during the pandemic but other were able to use them to initiate their own business.
The study also suggests that black-owned businesses benefitted in particular from the stimulus check influx. This will likely strengthen calls for a fourth stimulus check to help provide momentum for the recovering economy.
Child Tax Credit: will I have to pay back the money?
Child Tax Credit: will I have to pay back the money?
The IRS has announced it will begin payments for the Child Tax Credit on 15 July, but some are wondering if they will have to return the money when they file their taxes next year.
Eligibility now is based on last year’s tax filing but some households will experience an increase in their AGI before they file their 2021 tax returns, meaning that they may be eligible for less than originally thought. In this instance, the deficit would be added onto the recipients’ tax bill.
Gail Rosen, a certified public accountant, explained this to Oregon Live recently. She gives the example of a family whose 2020 tax return had suggested they could receive the full $3,600 maximum entitlement for a child under six. Rosen says: “But let’s assume when you file your 2021 tax return, your adjusted gross income turns out to be higher than 2020 and you’re only eligible for a child tax credit of $1,000.” “Then you would be required to pay back $2,600 with your 2021 tax return — $3,600 received in advance, less the $1,000 child tax credit, which would equal $2,600 due back to the IRS.”
Florida Stimulus School Reopening Update
Of fifty states, twenty-one states including Florida, have not submitted plans to the Department of Education detailing how they will use the funds allocated to them through the American Rescue Plan for schools. Florida was allocated the seven billion dollars and according to CS Miami the 7 deadline, “citing a delay “due to (the) legislative session and required State Board review.” The US Department of Education will not distribute the all funds until the plan is submitted.
What do we know so far?
Reporting suggests the state will use the funds to “expand access to COVID-19 vaccinations for staff and students and to prevent and mitigate the spread of COVID-19.”
Low expectations as Biden and Putin meet
U.S. President Joe Biden and Russian President Vladimir Putin square up on Wednesday for their first meeting since Biden took office with deep disagreements likely and expectations low for any breakthroughs.
Both have said they hope their talks in a lakeside Geneva villa can lead to more stable and predictable relations, even though they remain at odds over everything from arms control and cyber-hacking to election interference and Ukraine.
"We're not expecting a big set of deliverables out of this meeting," a senior U.S. official told reporters aboard Air Force One as Biden flew to Geneva, saying the two are expected to talk for four or five hours starting at around 13.30 CEST/ 07:30 ET.
"I'm not sure that any agreements will be reached," said Putin's foreign policy adviser Yuri Ushakov.
Relations have deteriorated for years, notably with Russia's 2014 annexation of Crimea from Ukraine, its 2015 intervention in Syria and U.S. charges - denied by Moscow - of its meddling in the 2016 election that brought Donald Trump to the White House.
They sank further in March when Biden said he thought Putin was a "killer", prompting Russia to recall its ambassador to Washington for consultations. The United States recalled its ambassador in April.
US retail sales fall in May
U.S. retail sales fell more than expected in May, with spending rotating back to services from goods as vaccinations allow Americans to travel and engage in other activities that had been restricted by the covid-19 pandemic.
Retail sales dropped 1.3% last month, the Commerce Department stated. Data for April was revised higher to show sales increasing 0.9% instead of being unchanged as previously reported. Economists polled by Reuters had forecast retail sales declining 0.8%.
During the pandemic, demand shifted to goods like electronics and motor vehicles as millions of people worked from home, switched to online classes and avoided public transportation.
IRS delays: Is identity theft delaying stimulus checks and tax refunds?
IRS announces that they have noticed a sharp increase in fraud this tax season, which has created delays in their ability to send funds in a timely manner.
Wall Street slips as Fed mulls policy, economic data disappoints
Wall Street took a step back from record highs Tuesday, as investors weighed whether higher inflation readings might nudge the U.S. Federal Reserve closer to tapering monetary stimulus.
With the Fed kicking off a two-day policy meeting today, investors are balancing the central bank's insistence inflation will be transitory with fresh data showing prices growing faster than expected.
In separate reports, U.S. economic data showed an acceleration in producer prices in May as supply chains try to keep up with surging demand with the pandemic easing, while retail sales dropped more than expected as consumers turned their attention back to service industries.
The readings have investors wondering if the Fed may come out of its meeting Wednesday with any indication it is tweaking its go-slow approach.
Central Bank and White House looking to keep economy bubbling
The strategy for both the Federal Reserve and the White House is dominated by the need to avoid a repeat of the unusually low quit rates and weak compensation growth between 2010 and 2016.
More labour market turnover and faster compensation growth will therefore be welcomed by policymakers anxious to repeat the subdued business cycle expansion after the last recession and the ensuing populist revolt.
Quit rates are critical to compensation growth. In general, most employees achieve larger wage gains when moving from one organisation to another rather than when they stay within the same organisation.
More turnover should therefore compel employers to raise pay faster, with benefits for households in the lower half of the income distribution, which depend more heavily on income from wages and salaries.
Both the central bank and White House want to run the economy relatively hot to maximise employment opportunities, job switching, and therefore wage and income gains for lower-income households.
Faster US wage rises will help entrench inflation
U.S. employees are feeling confident enough to push for better pay and conditions, despite the high level of unemployment after the pandemic, a sign the balance of power is shifting in the job market.
The result should be a strong and sustained expansion in consumer spending and business activity over the next year, which will be welcomed by policymakers at the central bank and in the White House.
However, it will also fuel faster inflation and probably force the Federal Reserve to scale back its bond buying programme and raise interest rates earlier than top policymakers have indicated so far.
The total number of non-farm employees is still down by more than 7.5 million compared with February 2020, the last month before the first wave of the pandemic hit the economy.
But in April, the proportion of employees who quit their jobs voluntarily rose to the highest rate for more than two decades, according to separations data compiled by the U.S. Bureau of Labor Statistics (BLS).
IRS offer Q&A section to dispel doubts
The Internal Revenue Service are promoting their bespoke Q&A service for users with tax questions.
Which states have abolished federal unemployment benefits and why?
Twenty-five states have ended or called to end federal pandemic-related unemployment benefits. Why did leaders in these states make the decision?
Child Tax Credit: will I have to pay back the money?
The IRS has confirmed that the monthly payments will begin from 15 July, but some may choose to opt out of the new system to avoid risking a larger tax bill
Stimulus checks live updates: welcome
Hello and welcome to our live stimulus checks blog for today, Wednesday 16 June 2021. We'll be bringing you updates on a possible fourth direct payment, in addition to information on the third round of checks, which has seen around $395 billion go out to eligible people in the US.
We'll also be providing news on other economic-aid schemes such as the expanded Child Tax Credit, which will see monthly payments of up to $300 distributed to qualifying households.