There has been a lot of debate over the last few months on if another stimulus check payment will be made in 2022 or even in 2023 as the economy worsens and inflation takes a heavy toll on household budgets.
You can see past updates below on the various stimulus check payments, but in essence there are no more federal economic impact/support payments (a.k.a stimulus checks) expected in 2022. The burden has now fallen to state and local governments to provide temporary financial support.
Fortunately some states are making one time support payments, including inflation relief checks in California. However this is mainly being done via state tax departments, so it’s important to file a return (see free efile options) to be eligible for these payments which are primarily based on taxable income and residency.
What about 2023 Stimulus Check Payments?
The best chance of a national or federally funded stimulus check for this year was via the recently passed Biden Inflation Reduction Act (IRA) package.
While there were many tax breaks and changes, funding for a 4th stimulus check was not included in the passed bill due to concerns raised by moderate Democrats (zero Republicans supported the IRA) around the inflationary impacts and negative optics ahead of the November mid-term elections.
There is however a chance, if Democrats retain control of the House and Senate, that other one-time economic assistance or stimulus payments may be made in 2023. This will be particularly the case if the economy worsens, inflations falls to manageable levels and unemployment rises.
Funding for this 4th or 5th stimulus check will likely be justified under the guise of an inflation or economic support payment and introduced via a bill early in 2023.
I’ll post updates if there is any progress on this topic and you can subscribe via the options below.
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[Updated following Biden Economic Plan] With Democrats winning both Georgia Senate seats and effectively gaining control of the Senate, thanks to the Democratic VP Kamala Harris being the tie breaker vote, new Senate Democratic Leader Chuck Schumer has said that one of the first things he wants to do as Senate Majority Leader is “renew call for the $2,000 stimulus checks.” This is in line with what President Elect Biden has stated as a priority in his first 100 days in office and outlined in his $1.9 trillion American Rescue Plan.
Third Stimulus Check
This third stimulus check ($1400) would be on top of the $600/$1200 second stimulus checks recently paid out and cost over $400 billion if it includes another round of dependent stimulus checks as well – likely $600 in line with the second economic impact payments (EIP). Income thresholds and other eligibility will likely stay in line with the second stimulus check and would likely be based on 2019 or 2020 tax return information. Using 2020 tax returns would allow tax payers to have the latest dependent and payment information for the IRS to administer the payments. You can file your 2020 tax return now with Turbo Tax to ensure your bank account and dependent details are up to date.
When Will I Get The Biden Stimulus Checks?
If the new Congress and President approves this by mid-February, after hashing out details, the third round of stimulus check payments could be paid by the IRS in early to mid March 2021. Given the IRS has now paid out two rounds of stimulus payments, the process to pay the third stimulus checks is now well established. For those who have not filed their 2020 return or request an extension they could claim the $1400 stimulus check (and any past missing stimulus payments) as a recovery rebate. Non-filers will likely have an opportunity to update their details via their main benefits agency (e.g. SSA for Social Security recipients) prior to this third payment.
This is a developing story and no formal legislation has been put forward. I expect there to be a lot of debate in Congress around other items in Biden’s new stimulus plan so the amounts and eligibility thresholds could change in the final legislation. See more in this video update on the $1400 payments and stay tuned for updates.
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