As the economy continues to recover from the pandemic, many households are still struggling with the rising costs of basic goods and services, making a fourth round of stimulus check, also known as an Economic Impact Payment, more crucial than ever. In this article, we will provide updates and information on the proposed fourth stimulus check, with a focus on the expected date of direct deposit, income qualification thresholds, and how it could be used to build an emergency fund. Additionally, we will answer some frequently asked questions about the inflation relief check and its potential impact on American families.
No Direct Deposit for Fourth Stimulus Check Expected in 2023
Despite multiple rounds of payments made over the last two years, recent legislation passed by President Biden and the Democrat-controlled Congress, including the $1.7 trillion omnibus government funding bill and the scaled-down Build Back Better (BBB) act, did not include funding for another stimulus check in 2023.
However, there has been talked of a fourth stimulus check in 2022, initially as a relief payment in Biden’s Build Back Better Bill (BBB), and now as a measure to balance increased expenses that many consumers are experiencing as a result of record inflation. Progress on a fourth stimulus check has paused in Congress because to a lack of agreement among Democrats and Republicans on what they can sell to their electorate ahead of the impending midterm elections.
Will there be a fourth stimulus check to deal with inflation pressures?
With the economy returning rapidly and jobless claims declining, most Democrats in Congress may find it difficult to justify spending billions of dollars on more stimulus payouts. However, with record inflation and higher interest rates, many individuals and families could benefit from some form of government support, especially those on a fixed income like senior citizens and disabled veterans.
Inflation Relief Checks: State-Specific Solutions
Recognizing the ongoing economic challenges faced by many Americans, some states like California have implemented state-specific stimulus payments to provide relief for lower-income workers. These payments include additional tax rebates and immediate payments for those who have filed a recent tax return. For families with qualified dependents, there is now an enhanced monthly Child Tax Credit (CTC) stimulus payment. While this is not a fourth dependent stimulus, it will function as one because it is paid directly by the IRS to almost 70 million dependents and their families.
What are the income qualification thresholds for the fourth stimulus check?
The income qualification thresholds for the fourth stimulus check would likely be similar to those of previous stimulus payments, with phase-outs for those with higher incomes. For example, the third stimulus check phased out completely for individuals earning over $87,000 and married couples earning over $174,000. The expanded monthly Child Tax Credit (CTC) also has income limits, it starts to phase out at $75,000 for single filers and $150,000 for joint filers.
Recovering Missed or Underpaid Stimulus Payments from Previous Rounds
The IRS has completed making millions of plus-up or catch-up stimulus payments to those who have filed a recent tax return. Based on these files, the IRS assessed the eligibility for previous stimulus payments and awarded these extra payments if they detected underpaid or missed payments, primarily owing to a change in income or absent dependents. All plus-up and catch-up payments for past credits have now been completed, and these payments will need to be claimed via filing a tax return.
Final Thoughts on Fourth Stimulus Check and Inflation Relief
While the possibility of a fourth stimulus check in 2023 remains uncertain, there are several state-specific solutions and expanded tax credit options that have been implemented to provide inflation relief for lower-income workers. It is important to keep in mind that if you have not received one or more of your previous stimulus payments, it will need to be claimed as a recovery rebate via your tax filing for the relevant year.
Additionally, the IRS has completed making catch-up payments for past credits, which can be claimed via filing a tax return. As the economy continues to recover and inflation pressures remain high, it’s worth staying informed about any potential developments for a fourth stimulus check or other forms of government support.