A rumor has surfaced on the internet that a fourth $15,000 stimulus cheque will be granted.
The stimulus check: What and why
A stimulus check is a check issued by the US government to a taxpayer. Stimulus cheques are designed to boost the economy by giving consumers some extra spending money. This money is given to taxpayers to increase consumer spending and income at merchants and manufacturers, thus boosting the economy.
A stimulus payment might be part of a wider federal stimulus program to help the economy. Several times, stimulus cheques have been mailed to U.S. taxpayers. The amount of these checks varies depending on the taxpayer’s filing status. Joint filers typically receive twice as much as single filers. In some cases, stimulus checks are immediately applied to outstanding balances for persons who owed past taxes.
The financial assistance during the Coronavirus pandemic
The United States government enacted a measure in March 2020 to send Americans stimulus payments to help them recover from the effects of the coronavirus outbreak. The CARES Act, among other things, stipulated tax credits of $1,200 per adult and $500 per qualified kid.
For incomes of moreover $75,000 per year for individuals and $150,000 for joint filers, the refund amount decreases. In December 2020, the second wave of $600 stimulus payments was distributed. Then, the American Rescue Plan Act was signed in March 2021. Direct stimulus payments of $1,400 were made to those with annual incomes of $75,000 or less.
The need for fourth stimulus check
The IRS has issued more than 169 million payments in the third round of direct stimulus aid, with more than 2 million people in July receiving the $1,400 checks. But some lawmakers are pushing for the fourth round of stimulus aid that would effectively send recurring payments until the pandemic ends.
So far, the federal response to the coronavirus pandemic’s economic crisis has given out $3,200 to eligible adults: $1,200 in March 2020 under the Coronavirus Aid Relief and Economic Security Act; $600 in December relief; and $1,400 in March 2020 under President Joe Biden’s American Rescue Plan. Despite this financial assistance, millions of Americans remain in financial trouble, and the Delta variant’s spread is causing additional economic challenges.
According to new Census survey data collected over the last two weeks of August, nearly one-quarter of Americans struggled to pay their household costs in the preceding week. Various other programs are being rolled out, from unemployment benefits, tax credit breaks, and more.
The status of the fourth stimulus check
Several states have already begun paying out cheques to alleviate some of the financial hardship caused by COVID-19 and the ensuing long-term measures. During the epidemic, direct payments and other pandemic relief measures have been demonstrated to reduce housing and food poverty.
Without them, it’s possible that the recovery from the early pandemic recession in spring 2020 would be even slower than the year-and-a-half-long progress we’ve seen so far. Even though some members of Congress have already urged for more aid for those still suffering from the pandemic’s financial effects, there have been no substantial discussions at the federal level about issuing another round of checks.
Many states have still opted to give some financial assistance to their residents. In California, taxpayers earning between $30,000 and $75,000 per year can get a one-time payment of $600, plus an additional $500 if they have dependents. Similarly, in New York, Maryland, Colorado, and some other states, different checks have been issued with different amounts for the sole purpose of financial assistance.
As the Coronavirus walks somewhat away from the world, the post effects of the pandemic still haunt many houses in America, and the risk of health and food insecurity increases. Programs like the stimulus checks are the only bright light in the lives of these families. We are waiting to see if the federals approve whether the residents will receive the aids or not.