Since the beginning of the covid-19 epidemic in March 2020, the federal government in the United States has distributed three rounds of stimulus funds. The past is reviewed…
Another wave of covid-19 infections is sweeping the United States, with the number of cases exceeding all prior peaks. In the past, the federal government has stepped in to support those who have been affected by the pandemic’s impact on their livelihoods and personal budgets. No fresh government stimulus payments are expected to be paid out, despite the fact that many workers are sick or quarantined.
The Internal Revenue Service just released its annual report, which highlights the accomplishments of its staff in 2021. “More than $1.5 trillion has been delivered to households around the country through Economic Impact payments, tax refunds, and advance Child Tax Credit payments,” according to the agency. Economic Impact Payments, popularly known as “stimulus cheques,” are outlined here.
1st Round of Stimulus Checks: April 2020
It was specified in the CAREs Act that qualified tax-paying adults would get a check of up to $1,200 and their dependent children under the age of 16 would receive checks of up to $500 as part of a stimulus package (a maximum of three dependents could be claimed for).
Those earning less than $75,000 (or $150,000 for married couples filing jointly) were eligible for the payments, which were provided to those earning up to $99,000 (or $198,000 for married couples filing jointly). Individuals received their first stimulus payments on April 11 and 12, either by direct deposit into their bank accounts, paper checks mailed to them, or the Economic Impact Payment (EIP) Card, a prepaid debit card delivered to them in late May or early June of last year.
Direct Payments Round 2: December 2020-January 2021
President Trump signed a $900 billion assistance package into law on December 27, 2020, as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021. It offered a lump-sum payment of up to $600, with an extra $600 available for households with children under the age of 16 who were dependents.
People making less than $75,000 received the full stimulus payment, but those making more than that received a gradually lower amount, up to a maximum phase-out limit of $87,000 for 2019. Direct deposit and paper checks were the primary methods of payment, with EIP 2 Cards being used for certain subsequent payments. Payments were made between December 29, 2020, and January 15, 2021.
If you didn’t get a stimulus payment from either the Covid-19 Relief bill in December or the CARES Act, you can claim it retroactively when you file your federal tax returns for 2020.
March 2021: Third Stimulus Check
When Joe Biden took office just a week after the second round of stimulus payments was completed, he revealed his American Rescue Plan, which recommended the third wave of payments to Americans, including some who may have missed out on the previous two rounds.
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Biden signed the $1.9 trillion American Rescue Plan into law on March 11th. Eligible individual taxpayers received a payout of up to $1,400, while married couples filing jointly received a check of up to $2,800. There was also an additional payment of $1,400 for families with dependents, regardless of age, and there was no cap on the number of dependents that could be claimed.
Immediately after Vice President Joe Biden signed the stimulus package, the first 164 million direct deposit payments totaling around $386 billion appeared in the bank accounts of individuals. Others received their money during the weekend of March 13/14, 2021, as scheduled.
It had been a regular practice since then to send out “plus-up” payments every week until the conclusion of the calendar year. Due to them, those who didn’t receive all of their EPI3 funds in 2021 will be able to file their tax returns in the spring of 2022 and claim them.
After that, what’s the next step?
In the hallways of Congress, the debate over a fourth stimulus check has all but evaporated. As the US economy continues to recover from the covid-19 epidemic, the unemployment rate is decreasing. Another stimulus check is impossible.