Fourth stimulus check and child tax credit summary: 31 July 2021
Stimulus checks: live updates 31 July 2021
Headlines
- US poverty rate has dropped 45% this past year, reports the NYT
- States use stimulus funding to provide 'thank you' bonuses for educators (Details)
- IRS struggles to get Child Tax Credit payments to low-income families (Details)
- Does the new bipartisan infrastructure deal include a Child Tax Credit expansion? (Details)
-Will a fourth stimulus check be included in the $3.5 trillion reconciliation package? (Details)
Useful information / links
What is IRS TREAS 310 and how is it related to 2020 tax returns? (Details)
IRS Child Tax Credit portal: how can I use it to opt out? (Details)
How much money can you get from stimulus checks and the Child Tax Credit? (Calculate)
Child Tax Credit | When is the deadline to opt-out of the August payment? (Details)
US Congress 101 | What is a reconciliation bill and how is it different from a normal bill? (Details)
Still waiting for your tax refund? Find out when to contact the IRS
Have a read of some of our related news articles:
"I need Nina Turner in Washington with me to make certain that not only do we pass a strong physical infrastructure bill, but that we pass an even more important human infrastructure bill. Nina Turner will fight, alongside of me to make sure that this $300 Child Tax Credit doesn't last for one year, but is made permanent".
AOC slams Congress inaction on eviction moratorium
Rep. Alexandria Ocasio-Cortez says there was plenty of time to find a solution to the eviction moratorium, which expired yesterday, leaving many vulnerable Americans at risk of being kicked out onto the streets.
"Everybody knew this was coming," she said. "We were sounding the alarm about this issue. The court order was not yesterday, the court order was no Monday, the court order was about a month ago. We had financial services hearing about it, there have been public statements about it - asking all of us, the White House and Congress to move on this sooner. The fact that the statement came out just yesterday is unacceptable. It is unacceptable. I want to make that very clear because the excuses that we've been hearing about it. I do not accept that.”
Pelosi won't bring up infrastructure package without the antipoverty bill
House Speaker Nancy Pelosi has made it clear that she won’t bring up the infrastructure package without the antipoverty bill - a $3.5 trillion antipoverty and healthcare package which Democrats plan to pass without GOP support. Speaking in Washington, DC on Friday, Pelosi said, "To sustain this growth for years to come and to ensure that we can then share in its benefits, that all can share in its benefits, we need to be transformative in terms of how we go forward with infrastructure investment and reconciliation bills that truly meet families’ needs. We will Build Back Better with more jobs, cut taxes and lower costs for all".
US stimulus check: which states are providing their own payments?
Despite calls from progressives within the Democratic Party and from Americans across the country, President Biden has remained unwilling to push for a fourth stimulus check in recent months.
Instead the Biden administration has focused on his new infrastructure project, trying to build bipartisan support for the $3.5 trillion package. This proposal includes an extension for the new Child Tax Credit but no fourth stimulus check. With nothing forthcoming from the federal government, some states are choosing to provide their own direct payments for residents.
How much should you get from the Child Tax Credit?
The White House estimate that roughly 88% of American children will be entitled to support from the new Child Tax Credit, but the amount on offer will vary greatly. Children younger than six can receive up to $300 per month, while it's capped at $250 for those aged 6 - 17.
However the amount you actually receive is also based on household income and personal information. If you think you may have been underpaid in your first monthly payment from the new Child Tax Credit, use this handy online calculator.
IRS Child Tax Credit portal: how can I use it to opt out?
On 15 July the IRS started making payments as part of the reformed Child Tax Credit, which will see parents receive a monthly direct payment for the first time. An estimated 88% of American children will be covered by the expanded programme, worth up to $300 per child, and it is hoped to halve childhood poverty over the next 12 months.
In a statement released to publicise the new system, President Biden said the new Child Tax Credit payments would “give our nation’s hardworking families with children a little more breathing room when it comes to putting food on the table, paying the bills, and making ends meet.”
Infrastructure bill gains momentum in Congress
The long-anticipated infrastructure bill has suffered a number of false starts since it was first floated by President Biden but Senate Majority Leader Chuck Schumer appears at last to have some confidence in the route forward. The new package, costing around $3.5 trillion, contains an extension to the new Child Tax Credit programme but falls short of offering a fourth stimulus check. Schumer will hope to put the bill to the floor in the coming days so members can begin debating the contents.
$1000 stimulus check for educators: how to claim it if I haven't received it
Teaching staff have been at the forefront of the pandemic, either with dangerous in-person teaching or preparing classes to teach online. It has been a tumultuous 18 months for the profession and it isn't going to get much easier soon. The CDC, for example, now recommends that all students in grades K-12 wear masks in the classroom regardless of their vaccination status.
As a way to show appreciation for their efforts, and to help retain teachers and staff, states and school districts have been approving one-time payments, using federal funds, to provide an additional 'stimulus check'.
IRS sends out 8.7m tax refund payments
The tax agency has had a busy 18 months. Tasked with distributing all three rounds of stimulus checks as well as introducing the new Child Tax Credit programme, it is no surprise that there have been delays to some of their normal operations.
Earlier this month officials confirmed that the IRS was working through a backlog of 35 million unprocessed tax returns. This has had a knock-on effect with millions of households left waiting for their 202 tax refund. This week another 8.7 million refunds were sent out, representing the latest major wave of payments.
The case for extending the Child Tax Credit
Democratic Sen. Cory Brooker has been a vocal support of the reformed Child Tax Credit and is equally eager to see the programme extended beyong its initial 12-month duration. The American Rescue Plan only provided a single year's worth of funding but their is clear appetite, both in Congress and in the White House, to see that extended for at least another four years.
Fourth Stimulus Check: Is another payment included in the reconciliation bill?
Earlier this week Senator Bernie Sanders unveiled a $3.5 trillion reconciliation package to help clear the logjam in Congress over the fate of the new infrastructure bill. The proposal includes many popular measures that were left out of the infrastructure plan put together by over twenty Democratic and Republican Senators.
Sanders who has not been involved in the bipartisan negotiations voiced his concerns over the lack of progressive policies included in the package. But has he included popular programmes like a fourth stimulus check in his proposal?
How does the new Child Tax Credit work?
The IRS has already sent out the first round of monthly payments for the new Child Tax Credit but some are still unsure about the structure for the revamped support programme. As explained in this video, the first half of the money will be provided in the form of monthly payments, while the remainder will be redeemed as a single end-of-year tax credit.
As it stands, this new programme will only last for a year but President Biden and Democrats in Congress are eager to see it extended beyond the intitial 12-month duration.
Stimulus checks have huge impact on poverty in the US
The federal government has enacted a variety of support programmes and financial initiatives to help strengthen the US economy and provide economic relief throughout the pandemic. Researchers at the liberal-leaning Urban Institute have found that around 50 million have avoided poverty over the past 18 months due to the intervention of government-funded pandemic programmes.
However the report also found that the three rounds of stimulus checks were by far the most effective means of keeping Americans' heads above water. The report found that stimulus checks were so useful because of their flexibility, meaning they were “available to broadly cover the needs of the household."
Child Tax Credit 2021: why are many American households missing their payments?
The Biden administration and many Democrats on Capitol Hill have argued that the newly enhanced Child Tax Credit will cut child poverty in half this year. But, there is one major catch: low-income families have to get the money.
After the first payment was made on 15 July, the People’s Policy Project released a blog highlighting that IRS was missing information on around seven million children whose families would be eligible to receive the payment. Many of these children have parents or guardians who may not be required to file a tax return, which is how the IRS collects the information needed to distribute the payments.
What are the Child Tax Credit payments being used for?
Little more than two weeks has passed since the IRS began sending out payments as part of the new Child Tax Credit programme and already we can see that the support is being used to cover the cost of essentials for struggling families. This report from AP shows that the monthly payments are being used to pay for rent and food, as well as paying off outstanding debts.
There is also hope that the new, regular payment structure will make budgeting easier for families.
“When people have money over a consistent period of time, it’s easier to make sure it’s going to the expenses you really need,” said Michael Reinke, executive director of the Nashua Soup Kitchen & Shelter. “Sometimes, if you get it all at once, it’s hard to budget.”
How stimulus initiatives have demolished poverty
Now that the earnings floor has been removed from the Child Tax Credit and it is fully refundable, poverty rates, especially childhood poverty, is changing dramatically. But the measure will be temporary, with the changes set to expire at the end of the year. President Biden has said that he wants to extend the expansion until 2025, when the changes made in 2017 will expire as well, dropping the credit back to $1,000. The hope is that the enhanced credit will prove so popular that voters will want the changes to be made permanent.
Congressional Democrats, for their part, would like to make the changes to the credit permanent starting this year as part of the American Families Plan but that won’t be possible at this time. An extension is penciled into the $3.5 trillion Democrat-only budget deal taking shape, along with the $1.2 trillion bipartisan infrastructure bill, in the Senate.
Stimulus checks and Child Tax Credit impact on poverty
Trillions of dollars of coronavirus relief programs are expected to lift nearly 20 million Americans out of poverty. According to The New York Times, there has been a 45 percent drop in the country’s poverty rate.
The poverty rate among children has dropped by 61 percent, largely due to the expansion of the child tax credit via Biden’s Covid-19 relief bill.
Rep. Rosa DeLauro and The Nation’s Joan Walsh join MSNBC’s Ari Melber to discuss this historic drop in the poverty rate.
Watch here, and take note of the graph shown on poverty rates over the years.
Child Tax Credits, debt and eviction
'Her day started before sunrise. Even though she had been up with the baby a few hours earlier, Brittany Baker lifted herself from the bed at 5, on a morning in June. She moved with slow, tiny steps across the carpet she was so proud to keep clean despite three youngsters running around the apartment. Two were still sleeping with her fiance, Jordan, in the bed she had just left. The other was quiet in a nearby crib.
'In the bathroom light she ignored the image bouncing back at her from the mirror — a 36-year-old Black woman wincing from pain jabbing up from her feet to her stomach. She was in the third trimester of a high-risk pregnancy but still clocking into work every day.
'Women of color like Baker have seen a disproportionate number of job losses since the coronavirus pandemic began. They also have continued to struggle during the recovery. In June 2021, 1 in 12 black women in the United States over 20 were unemployed, according to the National Women’s Law Center. That rate — 8.5 percent — was 1.7 times higher than before the pandemic. Dayton, Ohio, where Baker lives, also suffers from long-standing income inequality.'
Kyle Swenson tells the story of Brittany Baker for the Washington Post.
I've been disappointed that Senator Schumer has seen fit to try to force us to vote on a bill that does not exist in its entirety...
...but I hope we can now pump the brakes a little bit and take the time and care to evaluate the benefits and the cost of this legislation.
The longer it takes to finish, the longer we will be here, but we’re going to get the job done.
Infrastructure bill: physical and even more 'human'
Senator Bernie Sanders made his point as clear as ever on the infrastructure deal being discussed. It must be physical, and it must absolutely be 'human', calling on the Child Tax Credit to be made permanent.
The listening crowd were in support!
Child Tax Credit opt-out: know your stuff
Back to school sales should get a boost after millions of families banked their first monthly advance for the child tax credit in July. Another monthly payment is around the corner come 13 August too.
But before you throw an extra pair of sneakers or a high-end backpack into the cart, pay attention to the fine print. Did you know, for example, that some people will be stuck paying back the money next year if they received more than they're actually qualified to get each month from July through December? Others could be looking at a much smaller tax refund than they might typically expect.
Susan Tompor takes a look at the options that best suit you.
$1000 stimulus check for educators: how to claim it if I haven't received it
Teaching staff have been at the forefront of the pandemic, either with dangerous in-person teaching or preparing classes to teach online. It has been a tumultuous 18 months for the profession and it isn't going to get much easier soon. The CDC, for example, now recommends that all students in grades K-12 wear masks in the classroom regardless of their vaccination status.
As a way to show appreciation for their efforts, and to help retain teachers and staff, states and school districts have been approving one-time “thank you” using federal stimulus funds.
Child Tax Credit advance payments
Advance payments of the 2021 Child Tax Credit will be made regularly from July through December to eligible families. The advance payments will total up to 50% of the credit.
Child Tax Credit 2021: when is the deadline to opt out from August payment?
The deadline for opting out of the credit is August 2. Opting out at this stage prevents you from receiving any more of the credit until the end of the tax year in April 2022. However, the IRS says they will be adding functionality on the portal so families who opt out and change their mind can rejoin the monthly payments.
Emergency funds, saving
CBSN - So far, people who have received the three rounds of stimulus payments said they're using most of the funds to pay down debt or sock away the money in savings, according to a recent analysis from the Federal Reserve Bank of New York. That could indicate that people are using the money to whittle down debt they incurred during the pandemic as well as to build up an emergency fund in case of another shock.
Still, many people said they planned to spend their stimulus funds on the basics — food and housing costs were cited as the top two uses of the third stimulus check following savings, according to a February poll from Bloomberg/Morning Consult.
Almost 7 in 10 Americans who have received, or believe they will soon get, a third payment say it's important for their near-term finances, Bankrate.com said in April. That's down from about 8 in 10 people in March 2020, when the pandemic caused widespread unemployment, but overall the share of people who need additional support remains elevated more than a year later, according to the personal finance firm.
About 1 in 3 people said the stimulus aid would help support them for less than one month, the survey found.
How much money can you get from stimulus checks and the Child Tax Credit?
When he took office in January, one of President Biden’s first legislative priorities was to pass a large-scale relief bill that would form the first stage of his administration’s covid-19 recovery efforts.
He announced details of the American Rescue Plan shortly before entering the White House but it wasn’t until 13 March that he was able to sign it into law after protracted negotiations in Congress. Without any Republican support in the Senate Biden was forced to push the package through using reconciliation.
The $1.9 trillion stimulus package was one of the largest of its kind in American history and it provided direct support in the form of stimulus checks and the reformed Child Tax Credit. In total, these two programmes alone could be worth over $12,000 to a typical family.
Opting out of monthly child tax credit payments could make sense for families
On July 15, more than 35 million American families received the first of six monthly child tax credit payments.
However, some families may want to opt out of the remaining payments, according to financial experts, and instead wait to claim the entire credit when they file their 2021 taxes next year.
Before the payments began, roughly 1 million families had already decided to forgo them, which can be hundreds of dollars per month, according to the IRS and U.S. Treasury Department.
“It’s important to allow that ability to opt out of these payments because we don’t know how people have budgeted their tax refunds,” said Elaine Maag, a principal research associate at the Urban-Brookings Tax Policy Center. “And so if it’s important to them that they receive this credit as one payment, we want to make sure people still have that option.”
What is the average tax refund amount sent by IRS in 2021?
The average refund amounted to $2,827 this year. In total, the organisation refunded $270 billion of money to 96 million people in the 2021 tax filing season. Around $807 billion in stimulus checks were also sent out in the same period. In an extremely difficult year for most Americans financially, these payments have been a lifeline.
Despite the huge amount of claims processed and money sent, there are still millions of claimants waiting for their tax returns to be processed.
As of May 2021, the IRS had a backlog of 35 million tax returns to manually process. Couple this with the impact of home working and bringing this number down becomes an almighty task.
Who is opposed to the Bipartisan agreement?
The measure to begin debate over the proposal passed the Senate across truly bipartisan lines, with nearly 70 seventy Senators voting in the affirmative.
A few Republican Senators have voiced their opposition and after former-President Trump’s statement yesterday bashing the agreement, more could follow.
Thirty-two Senators, all Republicans, voted against the motion to proceed, including Mike Lee, Marco Rubio, Ben Sasse, Ted Cruz, and Tom Cotton.
Utah Senator Mike Lee’s office released a statement on his vote against the motion to proceed. In it, he argues that the country is “already seeing skyrocketing costs for things we need every day. Housing, food, gasoline, and electricity are all becoming more expensive in large part because the federal government keeps spending more money than it has.”
Concerns from the GOP over inflation have grown in recent weeks, and for Senator, Lee this bill would make it even “harder to make ends meet and provide for our families." The Consumer Price Index, which measures changes in the prices of goods and services, has increased considerably since the pandemic began. However, many economists disagree that federal stimulus is driving the surge in prices. Rather, some argue as consumer preference and behavior return to normal, the supply chains, many of which were broken or disrupted by covid-19, will need time to adjust.
What does the new Bipartisan agreement include? Who helped lead the effort?
On Wednesday, the Senate voted to begin debate over an infrastructure package negotiated between a group of bipartisan Senators and the White House. The announcement that the discussions had wrapped up was welcome news to many on Capitol Hill looking forward to their summer recess.
The official name of the bill is the Infrastructure Investment and Jobs Act (IIJA). A factsheet was released by the White House describing the agreement as “a once-in-a-generation investment in our infrastructure, which will be taken up in the Senate for consideration.” The comment is an important reminder that although the sides agreed, the future of the bill is not yet secured.
Disgraced USA Gymnastics doctor, Larry Nassar has received $2,000 in stimulus checks
After the Department of Justice released a report on the FBI’s failures to handle the sexual abuse investigation into team doctor Larry Nassar, another story has hit the headlines. Larry Nassar has received two federal stimulus checks from behind bars.
Nassar is eligible to receive the checks under federal law. However, lawyers and officials began to notice that while his income from behind bars grew, Nassar had failed to pay restitution to several victims. Since being imprisoned, he has received over $13,000 in income, of which the $2,000 comes from federal stimulus checks.
As a part of Nassar’s judicial ruling, the courts determined that he would be responsible for compensating many of his victims.
Will the new Bipartisan agreement include new stimulus money or tax breaks?
Will the new Bipartisan agreement include new stimulus money or tax breaks?
Detailed contents of the Bipartisan Infrastructure package, which has officially been named the Infrastructure Investment and Jobs Act (IIJA) have yet to be released. However, with debate over the proposal beginning in the Senate, details over what Democrats and Republicans agreed to are trickling out.
At this point, the IIJA does not include funding for a fourth stimulus check.
The group of Senators who worked on the package eliminated over $386 billion worth of clean energy tax credits. These credits were designed to assist individuals, municipalities, and businesses transition to clean energy sources and options, such as solar panels or electric vehicles and buses.
Record drop in poverty levels in the US
Poverty levels have dropped in every demographic according to data collected by the American Community Survey and Urban Institute, the New York Times reports.
Economic aid from federal relief programs implemented throughout the pandemic is expected to cut poverty almost in half during 2021 compared to figures from pre-pandemic levels, according to the ACS analysis. The number of poor Americans is expected to fall by nearly 20 million from 2018 levels, a decline of almost 45%.
Growing wealth gap in the US poses threat to democracy, says Pelosi
House Speaker Nancy Pelosi warned that the ever increasing wealth gap between the private sector and working class Americans and the unequal distribution of wealth is a threat to the standard of living of ordinary citizens and even a threat to democracy itself.
She told the Economic Disparity and Fairness in Growth Committee, "Today, our economy and our country faces a similar threat to the liberty of our democracy. We know that the middle class is the backbone of our democracy, if we strengthen our middle class, we strengthen our democracy. It's not just about the middle class, it's about those who aspire to it. Economic inequality has intensified during the pandemic. The widening chasm between CEO compensation & worker pay has gone from unfair to immoral. The stagnation of wages is a picture of injustice. We must ensure that our economy works for everyone while powering strong economic growth for years to come".
Biden statement on eviction prevention efforts and emergency rental assistance
President Joe Biden has issued a statement on the end of the eviction moratorium, which expires today, Saturday 31 July.
"As the eviction moratorium deadline approaches, I call on all state and local governments to take all possible steps to immediately disburse these funds given the imminent ending of the CDC eviction moratorium. State and local governments began receiving Emergency Rental Assistance funding in February and were eligible for an additional $21.5 billion passed in the American Rescue Plan. Five months later, with localities across the nation showing that they can deliver funds effectively – there can be no excuse for any state or locality not accelerating funds to landlords and tenants that have been hurt during this pandemic. Every state and local government must get these funds out to ensure we prevent every eviction we can. State and local governments can and should use both the Emergency Rental Assistance and their American Rescue Plan state and local funds to support policies with courts, community groups, and legal aid to ensure no one seeks an eviction when they have not sought out Emergency Rental Assistance funds. State and local governments should also be aware that there is no legal barrier to moratorium at the state and local level. My Administration will not rest – nor should state and local governments – until Emergency Rental Assistance dollars reach Americans in need".
CDC eviction moratorium to expires today
A nationwide ban preventing landlords from evicting tenants who are struggling to pay their rent because of the pandemic will expire today. The moratorium has been in place since September 2020.
According to the Associated Press, the Biden administration wanted to extend the eviction moratorium due to the spread of the Delta coronavirus variant. White House press secretary Jen Psaki said in a statement, "In light of the Supreme Court's ruling, the President calls on Congress to extend the eviction moratorium to protect such vulnerable renters and their families without delay. Given the recent spread of the Delta variant, including among those Americans both most likely to face evictions and lacking vaccinations, President Biden would have strongly supported a decision by the CDC to further extend this eviction moratorium to protect renters at this moment of heightened vulnerability. Unfortunately, the Supreme Court has made clear that this option is no longer available"
Personal income grows for the first time in the US since March 2021
After the sending of the third stimulus check passed as a part of the American Rescue Plan, personal income rose by more than 21% from February to March. However, data from April and May showed sharp decreases as money from the direct payment had been spent.
The Bureau of Economic Analysis has released the personal income and consumer spending report for June which shows that income grew 0.1%. While the figure represents a modest increase, it is an improvement over the decreases in income seen in the previous two months.
Disposable income, however, remained unchanged compared to the -2.7% decrease seen in May, meaning that while income did increase, inflation and other factors did not mean households were able to spend more.
$1000 bonus checks for educators: which states will send the payments using stimulus money?
$1000 bonus checks for educators: which states will send the payments using stimulus money?
State and school district administers are coming up with creative ways to use additional stimulus money for education passed as a part of the American Rescue Plan.
With many children at home during the pandemic, teachers had to adjust their curriculum and lessons for a virtual space. More than six states and districts are offering teachers a bonus or 'thank you' payment for their work throughout the pandemic.
Read our full coverage to find out if your state is one of them.
What does an increase in the Consumer Price Index mean?
Is inflation increasing in the United States?
Read our full coverage to understand what exactly is driving up prices in the US economy.
Are stimulus checks and the Child Tax Credit payments leading to an increase in inflation?
$300 unemployment benefits in Arkansas to continue
Unemployment supplements for around 69,000 citizens must restart in Arkansas while a lawsuit works its way through the court system. Pulaski County Circuit Judge Herbert T. Wright Jr. ordered the state to resume its participation in a federal unemployment assistance program which Gov. Asa Hutchinson had sought to end.
In May, Hutchinson said that he would end Arkansas' participation in the federal programs after 26 June. However a lawsuit was filed against Hutchinson last week. The lawsuit said Hutchinson had overstepped his authority in ending "life-sustaining benefits" for 68,853 Arkansas residents who qualified for the help.
It's totally absurd to me that working parents are paying 1/3 of their income in child care costs. We will address the crisis in child care by fighting to make sure that no working family pays more than 7% of their income on this basic need.
Debate over the Bipartisan infrastructure package begins for the second day this week.
Want to learn more about the package?
What does the new Bipartisan agreement include? Who helped lead the effort?
Will the new Bipartisan agreement include new stimulus money or tax breaks?
Families using Child Tax Credit to pay off rent and debts
Many families who receive Child Tax Credit have been spending it on rent, child care and food, as well as using the extra cash to pay off debts and other bills. Spending habits have changed since CTC payments were offered monthly rather than in one lump sum. “One of the problems with the big check in a year, if your car broke six months before, that is a long time to wait,” Michael Reinke, executive director of the Nashua Soup Kitchen & Shelter, explained. "When people have money over a consistent period of time, it’s easier to make sure it’s going to the expenses you really need. Sometimes, if you get it all at once, it’s hard to budget.”
Child Tax Credit 2021: why are many American households missing their payments?
IRS missing information for up to 7 million children for CTC
While most families who signed up have received their first payment, the People's Policy Project estimates that up to 7 million children have slipped through the net of the extra welfare.
For most families the information for the CTC is gathered through tax returns while others without tax returns have to apply manually on the IRS portal.
However, some of the children who are most vulnerable may not receive the funding due to parents missing out on accessing the website.
The IRS has partnered with community-based organizations around the country, but funding is limited.
The Senate remains on track to reach our goal of passing both a bipartisan infrastructure bill and a budget resolution.
Democrats hurry to extend eviction moratorium as evictions loom
Originally enacted by the CDC eleven months ago, the eviction moratorium was established to prevent the spread of the virus among families and individuals that could be made homeless.
Landlords have submitted 351,816 eviction filings since the CDC moratorium was enacted, which is less than half of what would usually be expected over a similar period, 760,000.
The moratorium ends at midnight today, 31 July.
Yes, Joe Biden gets a little win out of this, but like I always like to say, not every win requires a loser.
How many Americans will receive the $1600 Tax refund payment?
1.5 million Americans to have tax refunds of $1,600
The IRS reported that another 1.5 million taxpayers will receive refunds averaging more than $1,600 as it continues to adjust unemployment compensation from previously filed income tax returns.
President Biden's American Rescue Plan set a limit of $10,200 before any tax is paid from unemployment support. Any unemployment aid under this value would not be subject to any tax and those who overpaid are being retroactively refunded.
The refunds come as the extra federal unemployment benefits are due to end in September. The IRS has had a historic number of tax returns to account. Currently, the backlog stands at a staggering 35 million tax returns to manually process.
Infrastructure bill close to completion
The bipartisan bill passed its second procedural test and with negotiations sorted between the two parties it is likely to be passed next week.
The text is yet to be published by Senator Chuck Schumer is recommending a resumption of Senate discussion Saturday morning at 11am to discuss amendments.
The bill had been targeted as an important area by the President in his election campaign and would be major success for it to finally be implemented.
Stimulus check live updates: welcome
Hello and welcome to our daily live blog for Saturday 31 July, bringing you updates on a potential fourth stimulus check in the United States.
We'll also offer information on the third stimulus check, which began going out in March, as well as economic-support measures such as the new, expanded Child Tax Credit. Stay with us throughout the day for regular updates.