After Congress passed the American Rescue Plan in March, the IRS distributed more than $379 billion in a third wave of stimulus payments. The $1400 checks were sent to those struggling the most during the pandemic, but many say the money won’t last even three months. You may have heard rumors that Congress is considering a fourth stimulus package, and it does appear that at least some lawmakers in DC are proposing that exact scenario. But what does this mean for you?
Nothing has been decided yet, but a group of 21 Democratic senators have proposed recurring payments of $2,000 monthly until the pandemic is over. At least one poll has shown that 65 percent of Americans also support the idea.
For now, we know that in addition to the recent $1400 checks sent to many Americans, the expanded child tax credit promises to deliver more money into the hands of parents. Half of the credit ($3,600 for children under age 6, and $3,000 for those aged 6-17) will be paid in advance of next year’s tax filing season. Parents can then claim the other half of the credits when they file their 2021 tax returns. The IRS says that payments will be delivered beginning in July.
Finally, those who currently collect unemployment are receiving a federal “bonus”, in addition to their state benefits, of $300 weekly. That provision is slated to last until September 6, unless Congress takes action to extend it.
So, is a further stimulus package on the table? It is definitely being discussed within Congress, and many Americans appear to support the idea. But we’re a long way from seeing another bill passed, at least at this point in time, and it is too early to predict the amount of a possible fourth stimulus or which of us would receive the money.
In the meantime, continue practicing wise financial habits, and avoid counting on more stimulus payments for certain. If you have questions about your short-term or long-term financial plan, call our office and we can help you adjust your strategy if necessary.