Fourth stimulus check: summary news 13 october

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Fourth stimulus check live updates: Social Security benefits, COLA 2022, Child Tax Credit...

US stimulus checks: live updates

Headlines

- 2022 Social Security COLA of 5.9% announced today. What does that mean for your benefits next year?

- IRS to send fourth Child Tax Credit payment on 15 October.

- What the historic 2022 COLA means for the majority of Social Security beneficiaries.

- States organizing own covid-19 payments, including stimulus and hazard checks.

- Medicare open enrollment is just days away.

- How much were the first, second and third stimulus checks and when were they sent out?

-Calls for fourth stimulus check for Social Security recipients increase.

- Could a fourth federal stimulus check still happen this year?

Useful Information/Links

Fourth federal stimulus check

- How will September's unemployment rate affect chances of a fourth stimulus check?

Social Security and Medicare

- 2022 Social Security COLA benefits calculator

- Can a married couple collect two Social Security checks?

- At what age is Social Security no longer taxed in the US?

- What are the numbers on the back of my Social Security card?

- What are the 2022 Medicare premiums?

- What are the requirements to qualify for free Medicare?

Unemployment

- What is frictional unemployment?

California Golden State Stimulus checks

- How many more Golden State Stimulus payments are still to be sent?

- When will payments arrive and who qualifies?

Have a look at some of our related news articles:

Don't ignore IRS correspondence

The Internal Revenue Service reminds that all letters and correspondence are sent for a reason and advises patrons to pay attention to the lines of communication. The IRS will only contact you via the post, emails or phone calls claiming to be from the IRS are scams.

Golden State Stimulus

What is the deadline to file taxes in California and receive a stimulus check?

Only residents earning adjusted gross income (AGI) of $30,000 or less were eligible to receive the first Golden State Stimulus check. But for Golden State Stimulus II, the eligibility requirements have been extended to those earning up to $75,000 (AGI).

You only need to have been a California resident for more than half of the 2020 tax year to qualify for the $600 payment, though you must still be a state resident on the date your payment is issued and you must have filed your tax return by October 15 2021. Residents who claim at least one dependent will receive an additional $500, meaning they will receive a total of $1,100.

US NEWS

Which states have no income tax and no property tax?

In the US, each state has the power to determine how it will generate revenue through taxation. Some states opt to forgo the collection of income or sales tax. The elimination of income tax, at the state level, motivates some to move. However, governments must collect revenue one way or another, and if it is not through income taxes, it may be through higher sales or property tax.

Read more here

Food insecurity grows for children during the pandemic

A report released by the Agriculture Department in September found that overall levels of food insecurity were unchanged between 2019 and 2020, but food insecurity rose among households with children, from 13.6 percent of households to 14.8 percent. In 7.6 percent of households with children, both the adults in the household and children were food insecure.

An additional 584,000 children, 0.8 percent of children, lived in households with very low food security, meaning that there were disruptions in their food patterns and reduced eating intake. This is compared to 0.6 percent of children in 2019.

This report will hopefully reinvigorate calls to extend the Child Tax Credit to 2025. The plan is currently included in the reconciliation bill but it is unlikely to pass Congress at its current size of $3.5 trillion. Moderates are trying to reduce the size of the bill.

Which family focused policy in Democrats spending bill should stay? 

Senator Joe Manchin has told his Democratic colleagues that they will need to choose one of the four policies designed to help American families from the Build Back Better plan President Biden is pushing to pass through Congress. The impetus behind the Manchin’s requisite to get his crucial vote is to bring down the top line price of the spending bill currently at $3.5 trillion over ten years. 

So which would you choose to keep; paid family leave, subsidized child care, universal pre-K or extending the enhanced Child Tax Credit? The New York Times asks 18 academics who study family policy what they would keep if they had to choose just one.

Don't ignore IRS correspondence

The Internal Revenue Service reminds that all letters and correspondence are sent for a reason and advises patrons to pay attention to the lines of communication.

US NEWS

Which states have no income tax and no property tax?

In the US, each state has the power to determine how it will generate revenue through taxation. Some states opt to forgo the collection of income or sales tax. The elimination of income tax, at the state level, motivates some to move. However, governments must collect revenue one way or another, and if it is not through income taxes, it may be through higher sales or property tax.

Read more here

Golden State Stimulus

What is the deadline to file taxes in California and receive a stimulus check?

Only residents earning adjusted gross income (AGI) of $30,000 or less were eligible to receive the first Golden State Stimulus check. But for Golden State Stimulus II, the eligibility requirements have been extended to those earning up to $75,000 (AGI).

You only need to have been a California resident for more than half of the 2020 tax year to qualify for the $600 payment, though you must still be a state resident on the date your payment is issued and you must have filed your tax return by October 15 2021. Residents who claim at least one dependent will receive an additional $500, meaning they will receive a total of $1,100.

Read more here

Food insecurity grows for children during the pandemic

A report released by the Agriculture Department in September found that overall levels of food insecurity were unchanged between 2019 and 2020, but food insecurity rose among households with children, from 13.6 percent of households to 14.8 percent. In 7.6 percent of households with children, both the adults in the household and children were food insecure. An additional 584,000 children, 0.8 percent of children, lived in households with very low food security, meaning that there were disruptions in their food patterns and reduced eating intake. This is compared to 0.6 percent of children in 2019.

This report will hopefully reinvigorate calls to extend the Child Tax Credit to 2025. The plan is currently included in the reconciliation bill but it is unlikely to pass Congress at its current size of $3.5 trillion. Moderates are trying to reduce the size of the bill.

CHild Tax Credit

Child Tax Credit: what is the payment schedule in 2021? What payments are missing?

The Child Tax Credit has been sent out since July and it has been very popular. Who wouldn't object to an extra $300 in their bank account each month? Studies have proven its positive effects on recipients mental health, lifting millions out of poverty, and, surprising for some, an extra willingness to find work.

Three payments have been sent so far; July, August and September, with the next due in just two days on October 15.

Poverty rate has not seen the expected jump during pandemic

During a time of unprecedented change, including an ongoing pandemic and the resulting economic recession, the poverty rate measured by the official poverty measure increased by 1 percent, from 10.5 percent to 11.4 percent; in addition, 3.3 million more people lived below the federal poverty threshold, defined as $26,246 annually for a family of four, and the median household income fell by 2.9 percent, to $67,500.

This was mostly due to the raft of support given to Americans in 2020 and 2021.

The BLS reports on the breakdown of the 194,000 jobs added to the US economy in September. Since April 2020, when unemployment hit a record high the economy has added over 17.4 million jobs. However, the economy is still missing around "5.0 million, or 3.3 percent, from its pre-pandemic level in February 2020."

In September, the sectors that saw significant growth were "leisure and hospitality, in professional and business services, in retail trade, and in transportation and warehousing."

has increased by 17.4 million since a recent trough in April 2020 but is down by 5.0 million, or 3.3 percent, from its pre-pandemic level in February 2020.

Americans in favor of Medicare negotiating prescription drug prices

Americans pay some of the highest prices for prescription drugs on the planet. Back in 2003, when Republicans controlled Congress, lawmakers created Medicare’s Part D outpatient prescription drug program. As part of the bill they prohibited Medicare from negotiating prescription drug prices. That job was left up to private insurers even though Medicare could have much more leverage to obtain a better price.

The latest Kaiser Family Foundation (KFF) Tracking Poll finds that across party line most adults don’t believe pharmaceutical companies would be hurt financially if drug prices were to come down, that new innovations could still be achieved. 

Child Defense Fund, one of the United State's leading child advocacy organization is calling on Congress to implement President Biden's Build Back Better economic agenda. This includes the extension of the current structure of the Child Tax Credit through 2025.

Who is eligible for the Child Tax Credit?

New research has shown that all those eligible to receive payments for the Child Tax Credits are not receiving them. The eligibility requirement has been expanded, and the IRS hosted a webinar to help spread the world on the "non-traditional families" that could sign-up to receive payments.

When will the next payment of the Child Tax Credit be sent?

The IRS will begin the distribution of the fourth Child Tax Credit payment on 15 October. For those who have provided direct deposit information to the agnecy, they should receive their paymetns on the 15th.

US NEWS

How much will the Social Security Cost-of-Living Adjustment increase be in 2022?

How much will the Social Security Cost-of-Living Adjustment increase be in 2022?

In September, the Senior Citizens League, an organization that advocates for the rights of seniors, spoke to the need for a significant COLA increase after hearing from many Social Security beneficiaries that they were "cutting their spending on prescriptions and groceries because that’s the last things they have left to cut.”

Based on Consumer Price Index data from July and August, the organization advocated for an increase of 6.1 percent. On Wednesday 13 October, the Social Security Administration announced that the 2022 COLA for its more than 70 million beneficiaries would be 5.9 percent. 

Read our full coverage for more details and when to expect word from the Social Security Adminstration on what this means for your specific benefits.

SOCIAL SECURITY |COLA 2022

Social Security benefits calculator: how much will I get in 2022 if I am 62, 63, 65, 70...

Today the Social Security Administration announced a historic Cost-of-living-adjustment for those receiving benefits. Next year, beneficiaries can expect to see checks that are 5.9 percent larger.

Read our full coverage for guidance on how to calculate your new benefit amount with details breaking down the increase by age.

SOCIAL SECURITY | COLA 2022

Will all Social Security recipients receive the new increase of $1,100?

Will all Social Security recipients receive the new increase of $1,100?

On Wednesday the Social Security Administration (SSA) announced that the cost-of-living adjustment (COLA) for 2022 will be 5.9%, which represents the largest increase in 39 years.

Read our full coverage for more information on how much most Social Security beneficiaries can expect to receive next year.

 

Huge COLA increase may not be enough

Earlier today the Social Security Administration (SSA) announced a massive increase to the benefits's cost-of-living adjustment (COLA), which represents the largest raise in nearly 40 years. The SSA will hope that the increase helps provide extra support for recipients who are struggling to keep up with the surging rate of inflation, but there is concern that this may not be enough on its own. 

Rep. Matt Cartright insists that more needs to be done to boost the Social Security safety net sufficiently to ensure that no one is left behind. 

Next Child Tax Credit payments will go out on Friday

Rep. Ted Lieu of California's 33rd district has flagged up the next round of Child Tax Credit payments, which are due to go live later this week. Eligible families will start to receive the payments from Friday, 15 October. The monthly payments, worth up to $300 per eligible child, will end in December unless Congress can agree to an extension. 

“In our community, nearly 3 in 4 children will receive these payments, putting money in the pockets of parents to help pay for mortgages, child care, summer learning, and more, as we continue to recover economically from the pandemic."

“The Child Tax Credit will deliver critical resources to families when they need it most, but let’s be clear: families need support well beyond this pandemic. I’m fighting in Congress to permanently expand these Child Tax Credit payments, so our families have the resources needed to thrive this month and into the future.” 

Rep. Lauren Underwood, Remarks on the Child Tax Credit

SOCIAL SECURITY | COLA 2022

Social Security COLA 2022: how much is the increase on benefits?

A huge increase to the Social Security cost-of-living adjustment (COLA) has been confirmed, representing a sizeable raise for the nearly 70 million people who are supported by the programme. 

The Social Security Administration confirmed a 5.9 percent increase for 2022, but what will that mean for beneficiaries?

Read more

SOCIAL SECURITY | COLA 2022

How has Social Security COLA increased over the last 10 years?

Within the last hour, the Social Security Administration has announced that the cost-of-living-adjustment increase for 2022 will be 5.9%. But what does the COLA increase actually mean, and how is it decided?

Those who receive Social Security Benefits generally live on a fixed income, gyrations in the cost of everyday things can have a huge impact on their finances. To help counter the effects of inflation on an annual basis the Social Security Administration adjusts how much the agency pays out to beneficiaries each year.

Read more

How many will benefit from Social Security COLA increase?

The Social Security Administration has confirmed that as many as 70 million recipients will benefit from the 5.9% cost-of-living adjustment (COLA) increase. Millions had bee waiting anxiously to find out how big the increase would be and it was decided that, with high inflation and ongoing pandemic disruption, the largest increase in nearly 40 years was required. 

Social Security administration announces 5.9% COLA increase

The SSA have confirmed that millions of Social Security recipients will get a 5.9% boost to their benefits allocation for 2022. This is the biggest cost-of-living adjustment in 39 years, and comes hot on the heels of a inflation increase as the economy struggles to shake off economic consequences of covid-19. 

 

COLA 2022

What is the Consumer Price Index (CPI) and how does it affect Social Security benefits?

The US Bureau of Labor Statistics monitors the rise and fall of prices by measuring them in a weighted basket of goods and services, called the Consumer Price Index. This information is useful for policymakers to make decisions to control inflation or deflation.

It is also used to index payments to Social Security beneficiaries so that inflation doesn’t erode the purchasing power that a rise in the cost of living would imply. Every October the Social Security Administration announces the Cost-of-Living-Adjustment (COLA) for the following year that will be used to modify the level of benefits recipients will receive.

Read more

Progressives will continue to push for Child Tax Credit extension

Speaking to Kelly Phares, progessive Rep. Pramila Jayapal has confirmed that the caucus will aim to ensure that the Child Tax Credit extension is included in the upcoming reconciliation package, but admitted that it was not a top priority. This could make hopes of a significant extension unlikely, with Sen. Manchin and Sen. Sinema currently resistant to any exetension. 

US NEWS

Fourth stimulus check and own payments update by state: how's the situation in every one?

Some states are continuing with payments for those in and out of work this year. There has already been three proper stimulus checks sent out in the 18 months, and only really California can afford to keep up a similar plan.

These are not all stimulus checks in the way the previous three were, but represent payments sent by state governments to its citizens. Many of them are related to the resumption of in-school teaching, or they are extra support for people rejoining the workforce. Stimulus in terms of stimulating the return to the workplace after the confinements and tribulations of the pandemic.

Read more

Is a fourth stimulus check required?

In recent months the federal government has rolled back elements of the social security net that was introduced to provide support to those affected financially by the pandemic. The additional unemployment benefits programmes and the eviction moratorium were both allowed to expire, but a new study has suggested that more than a third of all Americans have faced "serious financial problems" in recent months. 

This may strengthen calls for a fourth stimulus check, especially after two underwhelming jobs reports in the last two months. 

Pelosi determined to keep Child Tax Credit extension in new bill

President Biden faces a balancing act to keep the Democratic caucus united in the Senate, where he will likely need every single vote to pass any substantial legislation. One of the key areas of dispte has been the Child Tax Credit extension, which Sen. Manchin and Sen. Sinema argue is too expensive. House Speaker Pelosi has suggeted that they could reduce the duration of the programmes to cut the cost, without removing any features. 

IRS stimulus check update: Unreported US territory residents glitch 

If you’re one of the untold number of Americans whose third stimulus check mysteriously never showed up, new details may offer clues as to why.

Some taxpayers may have been misidentified as US territory residents and mistakenly deemed ineligible to receive the payments from the Internal Revenue Service (IRS), according to people affected by the issue and correspondence seen by Fast Company. 

The misidentification was the result of a glitch that requires a manual review, some taxpayers were told by IRS representatives. Others learned of the issue only after their representatives in Congress conducted an inquiry on their behalf.

When will the next Child Tax Credit payments arrive?

The latest round of child tax credit payments are set to start going out this Friday, 15 October. Recipients are set to receive $250 for each child between 6 and 17 years old, and $300 for each child under six years old.

After Friday, there will be two more of these child tax credit payments — one on 15 November, with the sixth and final check coming on 15 December.

IRS warns of stimulus check scammers

The IRS has once again warned of the "continuing threat" from identity thieves looking to steal stimulus payments. Check out an extensive list of tax scams in this handy guide form the tax authority...

Social Security

What medical conditions qualify you for Social Security checks?

Social Security payments don't just cover seniors, they cover the disabled as well. Both the Supplementary Security Income (SSI) and the Social Security Disability Insurance (SSDI) payments can be attained by having a disability, but both have different requirements. A recipient can have both payments at once, if they satisfy both criteria.

The Social Security Administration has a list of conditions to determine the criteria for which people are eligible for payments.

Read more

Bipartisan infrastructure bill won't be enough to fight climate change

The bipartisan infrastructure bill, passed by the Senate, is being held up in the House pending a vote on the Democrat-only Build Back Better Plan. That bit of legislation which still needs to be formally proposed to the floor is itself tied up in negotiations over the overall size, i.e. cost, of the package, with centrist Senators Joe Manchin and Kyrsten Sinema holding back their crucial votes in the evenly divided Senate. 

Senator Manchin has taken particularly hard stand against the climate measures in the future bill saying on CNN recently, "The transition is happening. Now they're wanting to pay companies to do what they're already doing. Makes no sense to me at all."

The bipartisan infrastructure bill that he and other centrists pushed for, focuses mainly on roads and bridges, does invest $150 billion to boost clean energy and promote climate resilience. But that investment falls far short of the ambitious plans President Biden has put forth to transform US energy production making it 100 percent carbon-free by 2035.

Speaker Pelosi walks back cuts to Democrat-only spending bill

In a letter to colleagues (see full statement below) Speaker of the House Nancy Pelosi indicated that Democrats, negotiating how to bring down the top line price of the sweeping "human" infrastructure bill which includes measures to combat climate change, would need to par back the number of programs that would be included.

It now appears that the first approach will be to find price tag reductions in the number of years the programs are in place. The Democrats plan to use the budget reconciliation process to push the bill through Congress dodging a certain GOP filibuster of the proposal. That process already limited any spending on the proposals to 10 years.

Hello, good morning, and welcome to our dedicated fourth stimulus check live feed, bringing you all the latest updates from Washington. President Biden is embarking on a crucial period in his presidency, looking to pass the remaining pillars of his ambitious Build Back Better legislative agenda. 

We'll have the latest on the Child Tax Credit extension and Social Security benefits payments, as well as the COLA 2022 adjustments. 

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