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Wednesday, August 10, 2022

7 Stimulus Check Details You Did Not Know

On March 11, 2021, Joe Biden signed the American Rescue Plan Act. It provided essential financial relief to individuals and families COVID-19 relief to states and localities. Below are ten things to know about the third round of payments—including information on filing your 2021 taxes:

Here Are 7 Things You Need To Know About The Stimulus Checks

Eligibility Requirements for EIP Changed

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Many families may also qualify for additional Child Tax Credits and not know it. It is due to the credit increasing under President Biden’s American Rescue Plan.

Americans Spent Their EIPs Wisely 

With fewer places to spend money during the epidemic, as well as three stimulus checks, many Americans saved more than they would have otherwise. In April of 2020, the personal saving rate soared to 33.7 percent, and it maintained substantially above pre-pandemic levels until September of 2021.

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IRS Calculated Stimulus Amount Based On Previous Tax Returns  

Tax season and the timing of a third stimulus check overlap, especially now that the Tax Day deadline has moved to May 17. If you submitted your 2020 tax return, but the IRS didn’t process it yet, it will base your total on income from either your 2019 tax return, whichever it has on hand when it determines the size of your payment.

There’s An Income Limit

The third stimulus check comes with a $1,400-per-person maximum. An individual with an AGI of at least $80,000 a year would hit the payment cutoff, as would a head of household earning $120,000 and a couple filing jointly with an AGI of $160,000.

EIPs are not taxable

Stimulus checks were never taxable since they were an advance payment of an income tax credit.

Your State May Have Its Stimulus Program 

There are no new stimulus checks from the federal government. However, states have been funding their stimulus checks. They have improved their basic income plan, too.

No Stimulus Check 

The result for the stimulus check program was not favorable, since it provided money to spend, generating inflation amid a financial collapse.

Biden has been hesitant to approve a fourth round of payments, and it does not appear that such a bill will be considered anytime soon.

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