As the pandemic rages on, people are still looking for ways to make ends meet. New research by the Urban-Brookings Tax Policy Center shows that a fourth stimulus check could help over seven million people out of poverty, especially Black people.
According to the study, the third stimulus check that many just received as part of President Joe Biden’s American Rescue Plan will reduce the number of people in poverty by 11.4 million.
“Another round of payments could lift an additional 6.6 to 7.3 million people out of poverty, depending on whether the payment was restricted to citizens or made available to everyone,” the group wrote in its official report.
It goes on to further state that “among Black people, an additional payment could reduce poverty from 10.5 percent to between 7.7 and 7.8 percent.”
Millions of people have already received their third stimulus check, but others are still waiting, and there are a few reasons why. The Internal Revenue Service (IRS) started processing payments in March and some people got them just a few days later via direct deposit.
On March 19, payments based on both 2019 and 2020 tax returns began being issued to those with and without direct deposit information on file. The IRS said that process will continue throughout the year.
With over 18 million people still receiving unemployment, some economists say additional stimulus payments might be needed this year to boost the economy.
As the latest federal direct payment has hit most bank accounts some people are wondering if there will be a fourth stimulus check coming later this year.
“More direct stimulus payments are certainly possible,” Peter Earle, an economist at the American Institute for Economic Research, told Acorns/CNBC. David Blanchflower, who teaches economics at Dartmouth College, also told CNBC the enacted stimulus package likely “won’t be enough” and said more stimulus could come later.
“We urge you to include recurring direct payments and automatic unemployment insurance extensions tied to economic conditions in your Build Back Better long-term economic plan,” the Urban-Brookings Tax Policy Center wrote in its report.
While it remains unknown if there will be additional stimulus payments, the increased Child Tax Credit will provide monthly payments to people who qualify.|
Child Tax Credit Increased for 2021
For this year only, the child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously children had to be 16 or younger.
The child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit.
The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously children had to be 16 or younger. The credit is also fully refundable.
For the standard $2,000 child tax credit, the phase-out starts at $400,000 if filing jointly. According to the relief plan signed earlier this month, the additional credit will phase out for single filers at $75,000 and joint filers at $150,000.
When will Social Security Recipients, SSI, and SSDI receive their stimulus check?
The Social Security Administration transmitted payment information for nearly 30 million to the IRS to get stimulus checks out the door after several Congressional leaders said they were “alarmed” at the lack of payments.
Many non-filers who receive benefits from SSI (Supplemental Security Income) and the Railroad Retirement Board have also not received their checks and are part of the April 7 rollout. Those beneficiaries of Veterans Affairs, however, are still going to have to wait for their checks, the IRS said. Already about 90 million people have received their third wave of stimulus checks, according to a joint letter to the heads of the Internal Revenue Service and Social Security Administration. You can check the status of your payment using the IRS Get My Payment
