As we move into the second week of the new year, many Americans are left wondering if there are more stimulus checks in the pipeline. This comes even as inflation continues to assail low and moderate-income people.
People are also intrigued by a tweet from President Joe Biden where he celebrated the legislative accomplishments of his administration. He has also indicated that much remains to be done. People have interpreted this to indicate that it refers partially to the proposed extension of the Child Tax Credit through 2025, a mission close to the president.
President Biden’s tweet for the new year on the last day of the previous year listed the achievements of the administration during his two years in office. Biden indicated that the administration has signed historic legislation that would lead to lower costs for working families, especially those with low income.
The president also spoke of support for seniors and the need to keep the community safe from the culture of gun violence. He also stressed the need to create jobs that pay well, a contentious issue as all plans to increase the minimum wages have been stymied by the Republicans.
But what has evoked extra interest is the first part of the tweet by the president. Some have interpreted his tweet to conclude that Biden has indicated that there could be further measures. As prices continue to remain high, many are hopeful that more stimulus checks will hit their bank accounts in 2023.
Hope Of Another Expanded Child Tax Credit Stimulus Check
The tweet by the president was optimistic about the steps that the administration has taken in the past two years to help out individuals and families cutting across various demographics. One of the most difficult parts of sending out the stimulus checks was getting the amount across to people of multiple denominations divided by religion, race, ethnic groups, income, and various other combinations.
The first two stimulus checks missed out on covering certain sections of the population based on earnings, color, race, and location. But the third stimulus check was more thorough and prompt in disseminating the economic impact payments across the country.
But even then the IRS has detected that around 9.5 million people missed out on the payments. Gathering data from other sources, it has sent out letters to these families inviting them to file a simple income tax return for 2021 and collect the third stimulus checks. Also up for grabs are the expanded Child Tax Credit stimulus checks which alone could be worth more than $7,000 for a family with two children.
Other payments that remain unpaid to this section of the population include the Earned Income Tax Credit.
If President Biden continues to push for the expanded version of the CTC stimulus checks, there is a strong possibility that parents will get a federal stimulus check-in in 2023. But for that to happen at least a section of the Republicans have to get on board with the policies of the President.
And that seems unlikely to happen at the moment as the atmosphere continues to be vitiated. This was something that outgoing president Trump had ensured both during his years at the White House and also in the last two years. A fractured Congress will also not help matters.
The Rescue Plan expanded the CTC payments from $2,000 to between $3,000 and $3,600 per child depending on their age. Children under six years received the larger amount while those between six and seventeen received $3,000.
Half the payment went out as monthly payments between July and December 2021. The rest 50% was paid against the 2021 income tax returns filed in the first quarter of 2022. For the first time, the credit was fully refundable and people who did not pay any tax were also eligible for the full payment.
There is little guarantee that there will be an extension in 2023 of the expanded CTC payments. With the Republicans fully in control of the House of Representatives, it remains to be seen how the Republicans react to anything that President Biden proposes on the Child Tax Credit payments.
But the president’s acknowledgment that there is much more that remains to be done should be a sign of hope and encouragement for families hoping for further stimulus checks from the federal government.
Chances Of More States Stepping In With Stimulus Checks In 2023
At present, the only stimulus check payments from states are the spillover of the payments declared in 2022. Both California and Colorado timed their stimulus checks for the last quarter to coincide with the festive season. Most payments have gone out to residents with California sending out 90% of its payments by December 2022.
But the debit card payments have been delayed for various reasons and it appears that the state is poised to miss out on January 14, 2023, the final date for completion of the payments. Residents have to also contend with delays by the United States Postal Service with the cards taking as many as 15 days to reach the beneficiaries.
Residents of Colorado who have timely filed their 2021 income tax returns have mostly received the stimulus check from the state. June 30, 2023, was the last date to file and claim the amount. Colorado has not tied up the payments to the Adjusted Gross Income as revealed by the filing. All filers, including dependents, are in line for the payment.
The bill was signed in May 2022 by Governor Jared Polis and over 50% was paid by August last year. filers who filed for an extension and received it to file by the October 17 deadline will receive their stimulus checks by the end of January 2023. While individual filers received a $750 stimulus check, married couples filing jointly received double that amount.
Colorado is the only state that is poised to repeat the stimulus checks in the next year. The payments, unlike for other states, are tied to the economic performance of the Centennial State. The payments in the next two years are projected to be quite as generous as the ones paid in 2022.