Fourth stimulus check news summary: 9 October 2021
Headlines
- Some states opt to send residents a stimulus check with chances of a fourth federal payment near zero.
- Can afourth stimulus check still happen in 2021?
- Early data shows that the choice to end federal unemployment benefits has not increased labor market reentry.
- Senate approves temporary debt increase of $480 billion.
- September unemployment rate and the possibility of a fourth stimulus check.
- What is frictional unemployment?
- Second poor jobs report in a row as only 194,000 new jobs in September, despite end of extra benefits.
Useful Information/Links
Social Security and Medicare
- A look at requesting Social Security benefits if you are not a citizen in the US.
- At what age is Social Security no longer taxed in the US?
- How long does it take for Social Security to change direct deposit?
- What are the numbers on the back of my Social Security card?
- New details over changes to Medicare premiums released.
California Golden State Stimulus Checks
- How many more payments remain to be sent in 2021?
- When will the payments arrive and who qualifies?
Take a look at some of our related news:
Three stimulus checks have so far been sent out by the US federal government since the start of the coronavirus pandemic.
We take a look at the direct payments and their impact on the country's economy
American workers have gone on strike
The White House has been trying to control the narrative of the jobs report that came out this week putting a positive spin on the numbers. The number of new hires was less than half of what analysts had expected although hours worked increased and demand for workers remains strong.
Despite enhanced federal unemployment benefit programs expiring at the beginning of September people weren't rushing back to fill vacancies in the market. Former Secretary of Labor in the Clinton Robert Reich administration believes its because workers are fed up and in a way have called a general strike.
Why millions joined the Great Resignation
Employers are having difficulty finding staff to fill available jobs. Where once they were in the driving seat choosing the candidates they wanted and setting the conditions, bosses have had to reassess the situation.
While at the same time the pandemic has made millions of Americans reconsider their careers and given them a nudge to venture out to look for something new. Here are some of their stories...
How does the debt ceiling deal affect Social Security payments?
Lawmakers in Washington have agreed to a short-term increase of the debt ceiling postponing the need for the US Treasury to decide who gets paid. But, that agreement only gives a matter of weeks breathing space.
If a longer-term solution is not achieved before 3 December, the estimated date the US Treasury won’t be able to meet all its financial obligations, then questions about what payments the US government can make come into play.
With the partisan standoff in Washington holding up a long-term solution to raising the debt ceiling, what federal government payments will be at risk?
Debt ceiling game of chickens
The US has come perilous close to defaulting on its debt. With a little over a week to go before the US Treasury would no longer have been able pay all the nation's financial obligations the Republicans and Democrats reached a temporary agreement which passed the Senate. Members of the House of Representatives will vote on the measure on Tuesday where it should pass and President Biden said that he will sign it.
Another disaster has been averted but only for a matter of weeks. Before 3 December a resolution to how to finance the government and the current debt ceiling limit will need to be found. Current Senate Minority Leader Mitch McConnell has told President Biden that GOP lawmakers will not vote to raise the debt ceiling in December even though the spending that needs to be covered was authorized under former President Trump.
Before the American Rescue Plan passed, the Congressional Budget Office projected that it would take until 2023 to get to a 4.8% unemployment rate.
We hit that rate in October of 2021.
Last chance to claim 2020 stimulus checks approaching
The majority of Americans have already received the stimulus money due to them from the first and second Economic Impact Payments but there are still some Americans who have not. The IRS automatically sent out the payments for the two rounds of stimulus checks approved last year based on tax returns from either 2018 or 2019 and information from the Social Security Administration or Veterans Affairs.
Still there are some Americans who aren't required to file income tax returns due to their low income. Technically they have until 15 October to file a tax return to receive those funds. Although since it is a tax rebate and they should qualify for the full amount which was a total of $1,800 in 2020 they would have up until 15 April 2024 to claim their refund, but the IRS is recommending not to wait.
Could the unemployment rate affect a future fourth stimulus check or other benefits?
The underwhelming September jobs report has seen renewed calls for additional federal support programmes, but the White House insists it is not necessary.
Child Tax Credit spending plans: US born vs immigrants
The Tax Policy Center has published this graph based on a survey which compared the child tax credit spending plans of US born and immigrant recipients...
Lamont: Let's get infrastructure bill over the finish line
Connecticut Gov. Ned Lamont has spoken to The Hill about the infrastructure bill, urging his colleagues to "get it over the finish line". See video below...
Many Americans face bigger tax bill due to "math error" regarding stimulus checks
Many Americans have received notifications from the IRS, warning them that they owe more tax money due to a "math error" regarding stimulus checks.
The IRS is issuing 6470 letters to individuals who claimed the Recovery Rebate Credit on their 2020 tax returns. The credit allowed those who didn’t receive the first or second stimulus checks to claim the money in the form of a tax refund. This also applies to those who did not receive the full amount in their stimulus checks.
If you are one of those people, you may have received or can expect to receive a CP11, CP12, or CP13 notice from the IRS in the post, informing you if and how much tax you owe.
Fox 13 Tampa Bay has more...
An insight into leaders supporting Child Tax Credit
The latest Add Passion and Stir podcast features Amanda Renteria, CEO of Code for America, who launched the GetCTC.org portal to make it easier for families to claim their credit and Jimmy Chen, CEO of Propel, the organization behind the Providers app, which allows participants to manage a variety of government benefits, including the CTC, in one place about how they are helping to the credit reach all eligible families. Check it out here.
Calls for Fourth Stimulus Check for older Americans
It seems the chance of a fourth stimulus check are dead and buried, however a nonpartisan group has called for another direct payment of $1,400 for struggling older Americans...
Representative Peter Welch took to Twitter to make his case for why the Child Tax Credit should be made permanent.
Check it out below.
Fourth stimulus check: which states are making cash payments?
Fourth stimulus check: which states are making cash payments?
The lackluster September jobs report has many worried that the economic recovery could be slowing. This comes after federal pandemic-related unemployment programs ended, leaving millions without an income, just as the Supreme Court struck down the White House’s eviction moratorium.
With a fourth federal stimulus check out of sight, some states have taken it upon themselves to send a direct payment to their residents. However, unlike the federal payments, many states have opted to send the checks to particular groups, in some cases limiting the number of recipients by income or profession.
Read more on the states sending the payments in our full coverage.
Could the unemployment rate affect a future fourth stimulus check or other benefits?
Could the unemployment rate affect a future fourth stimulus check or other benefits?
On Friday the Bureau of Labor Statistics released the jobs report for September, which showed that just 194,000 new jobs were added that month as the nation’s economic recovery continues to stagnate. The September figures fell short of economists predictions and have sparked concern, with the more dangerous winter months ahead.
In response to the underwhelming statistics many lawmakers have called for additional forms of financial support to be introduced, replacing some that have been removed in recent months.
Read more on what could be introduced in our full coverage.
Social Security: can you request payment if you are not a US citizen?
Social Security: can you request payment if you are not a US citizen?
Citizenship status can impact whether or not one will have to pay Social Security taxes.
Logically, if a person is only coming to the United States for a short time, they are not required because they will never ever claim benefits. Additionally, this allows workers to save a part of their income for their retirement in their country of origin, should they ended up not living in the United States when they are seniors.
However, whether or not you will be required to pay depends largely on your profession and visa.
Read our full coverage for more on how to claim benefits as a non-citizen.
When is Social Security COLA for benefits in 2022 announced?
When is Social Security COLA for benefits in 2022 announced?
Based on the announcements made in previous years, we can expect that the COLA will be announced sometime next week. This year all eyes are on the Social Security Administration because of how inflation has brought the price of basic goods way up. These increases are especially challenging for those who receive Social Security as they are on a fixed income, meaning that rapid changes in inflation have a severe impact on their disposable income.
Read more on the announcement in our full coverage.
A weakening labor market
The Wall Street Journal reported on the lackluster September jobs report which showed slower growth in the labor market than August.
Dow Jones had estimated that half a million jobs would be added to the economy, and in the end the total number was less than half of the projection. The WSJ journal stated that this is because of "supply of workers, not the demand." Read their full coverage for more on the "key themes" from the September report.
Where are states investing money they received through the American Rescue Plan?
The Center on Budget and Policy Priorities has highlighted important investments being made by a few states that they argue should be maintained after the American Resuce Plan funds lapse.
The federal guidance released to help inform allocations "encourages states to focus on low-income communities and communities of color that were hit hardest by the pandemic, such as by expanding mental health services, providing rental subsidies, or improving access to postsecondary education or job training."
Read more here.
At what age is Social Security no longer taxed in the US?
At what age is Social Security no longer taxed in the US?
Since 1983, Social Security has been subject to taxation but in the intervening four decades no inflation adjustments have been made, so almost all recipients will be required to pay tax on their payments.
However once you are at full retirement age (between 65 and 67 years old, depending on your year of birth) you will no longer be taxed on Social Security payments.
Read more in our full coverage.
Human Rights Watch makes support for the Child Tax Credit public
As leaders on Capitol Hill debate whether or not to make the credit's new structure permanent, HRW argues that a child's "right to an adequate standard of living is well established under international human rights law," and that "all children should be able to live in dignity and have their basic needs met."
The new structure will sends between $250 and $300 a month depending on the age of the child, is expected to cut child poverty in half by the end of this year. Studies have already shown that the monthly payments have helped to reduce food insecurity and improve the financial well-being of many households.
Covid-19 economic crisis hit some groups much harder than others
Dow Jones had estimated that 500,000 jobs would be added in September. In the end only 194,000 were.
MSNBC's Craig Melvin sat down with "Washington Post economics correspondent Heather Long [...] to discuss the report and the unemployment struggle for women."
Morning Consult found that in late September, the number of job applications sent by working adults was higher compared to figures from August.
Rates were highest among workers with less than $50,000.
September unemployment report now available
The Bureau of Labor Statistics released the September unemployment numbers which show a decrease in the national unemployment rate to 4.8%.
Check out the link below to see the data visualizations from the report put together by the BLS.
Negotiations over the reconciliation bill continue
To meet the demands of more conservative members of the Democratic party, those leading the reconciliation negotiations are looking for items to cut.
Sen. Markey of Massachusetts made his position clear this week saying "Climate cannot and will not be cut."
McConnell's warning to Biden: Republicans will not vote to increase the debt ceiling in December
In a "blistering" letter sent to President Biden, the GOP leader in the Senate made it clear that his party would not vote for a debt ceiling increase in December. This week Congress was able to avoid a possible US default by providing a $480 billion increase through December.
December may prove to be a busy month on Capitol Hill as leaders will need to focus on the debt ceiling and the appropriations bill for next year.
End of unemployment benefits didn't create employment boom
Many had high expectations for the September jobs report that came out this week. School was back in session freeing up parents to go back to the office and eat out once again. Likewise, with enhanced unemployment benefits expiring at the beginning of the month in the rest of the states that hadn't ended them early workers would be prodded back into jobs.
The jobs report showed that the pandemic is still hindering the return to normal. However despite the disappointing numbers there were some silver linings. Labor demand is high indicating that the economy is strong, it will take kicking the virus to truly free the economy from it grip.
How has the expiration of additional unemployment benefits affected the employment rate?
How has the expiration of additional unemployment benefits affected the employment rate?
The September jobs report released on Friday fell well short of expectations and offered further evidence to suggest that the United States’ economic recovery is slowing.
Overall just 194,000 new payrolls were added in September according to the Bureau of Labor Statistics. Furthermore the Labor Force, the number of employed individuals and people actively looking for a job, fell by 183,000, suggesting that some were beginning to lose faith in the hope of finding a job.
The September job report is the first major evidence of the effect that the additional unemployment benefits had on unemployment in the US, and undermines claims that the boosted support was hampering employment figures.
Read our full coverage to understand the responses for leaders on the jobs report.
President Biden touts jobs numbers and pushes for passage of his agenda
"Jobs up, wages up, unemployment down. That's progress." President Biden.
Welcome to our stimulus checks and Child Tax Credit live feed
Hello and welcome to our live feed for Saturday 9 October, as we bring you the latest news on a potential fourth federal stimulus check in the United States. We'll also provide you with information on the monthly Child Tax Credit scheme - which has so far seen three payments of up to $300 go out to eligible households - and on other benefits available to Americans, such as changes to next year's Social Security payments.