CLEVELAND (WJW) — With over 18 million people still receiving unemployment, some economists say additional stimulus payments might be needed this year to boost the economy.
As the latest federal direct payment has hit most bank accounts some people are wondering if there will be a fourth stimulus check coming later this year.
“More direct stimulus payments are certainly possible,” Peter Earle, an economist at the American Institute for Economic Research, told Acorns/CNBC. David Blanchflower, who teaches economics at Dartmouth College, also told CNBC the enacted stimulus package likely “won’t be enough” and said more stimulus could come later.
A group of 10 Democratic senators released a letter
“We urge you to include recurring direct payments and automatic unemployment insurance
extensions tied to economic conditions in your Build Back Better long-term economic plan,” the group writes.
While it remains unknown if there will be additional stimulus payments, the increased Child Tax Credit will provide monthly payments to people who qualify.
For this year only, the child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. For people who qualify, they will also be eligible for monthly payments of $300/child starting in July.
When will Social Security Recipients, SSI, and SSDI receive their stimulus check?
The Social Security Administration transmitted payment information for nearly 30 million to the IRS to get stimulus checks out the door after several Congressional leaders said they were “alarmed” at the lack of payments.
Beneficiaries of Social Security, SSI (Supplemental Security Income), Veterans Affairs and Railroad Retirement Board haven’t received their third checks and still have no estimated timeline on when they will get payments.
Already about 90 million people have received their third wave of stimulus checks, according to a joint letter to the heads of the Internal Revenue Service and Social Security Administration.
“However, we were alarmed to learn recently that most Social Security, SSI, RRB, and VA beneficiaries who are not required to file a tax return have not yet received their payments and that the IRS is unable to provide an expected timeline for these payments,” said Reps. Richard Neal (D-MA), John Larson (D-CT), Bill Pascrell (D-NJ) and Danny Davis (D-IL) in the letter sent earlier this week.
On Wednesday, the group sent a follow-up letter to Social Security Administration Commissioner Andrew Saul after learning the agency hasn’t sent the necessary payment files to the IRS, delaying the payments of nearly 30 million people.
“We are aware that the IRS asked SSA to start sending payment files two weeks before the American Rescue Plan became law on March 11, 2021,” they wrote Wednesday. “As of today, SSA still has not provided the IRS with the payment files that are needed to issue EIPs to these struggling Americans. We demand that you immediately provide the IRS this information by tomorrow, March 25, 2021.”
The SSA responded at 8:48 a.m. (EDT), according to the Congressional leaders, saying they had sent the info to the IRS.
“We are gratified that the SSA leadership finally recognized the urgency of the moment and acted swiftly on our ultimatum,” the group said in a joint statement Thursday.
They said the delays “defied congressional intent” and gave needless anxiety to taxpayers.
“Now the IRS needs to do its job and get these overdue payments out to suffering Americans. Further delays will not be tolerated by this committee,” the members of Congress said.
They also praised the work of SSA’s public servants.
The IRS has not confirmed the official payment date. Social Security recipients will get the payment the same way they would normally receive Social Security benefits.
You can check the status of your payment using the IRS Get My Payment Tool.
“The American Rescue Plan was intended to provide much-needed economic stimulus and assistance to people across the country – immediately – and we are counting on your agencies to ensure that beneficiaries are not left behind in the seamless delivery of those payments. Some of our most vulnerable seniors and persons with disabilities, including veterans who served our country with honor, are unable to pay for basic necessities while they wait for their overdue payments,” the members wrote in the Monday letter.
They had originally set a deadline for the IRS to set a timeline by Friday, but in the latest letter, the members of Congress called on the Social Security Administration to provide details by Thursday.
Still waiting on your third stimulus payment?
As of last week, the Treasury Department had distributed some 90 million payments to taxpayers. But with an estimated 85% of Americans qualifying for the latest round of stimulus checks, many are still waiting.
A large number of mailed payments are expected in this second batch, which began processing last Friday, according to the IRS.
“Taxpayers who do not receive a direct deposit by March 24 should watch the mail carefully in the coming weeks for a paper check or a prepaid debit card, known as an Economic Impact Payment Card, or EIP Card,” the agency said in a news release, adding that those payments should arrive “in the coming weeks.”
In the letter, senators say the two forms of payments are effective together.
“Data shows that direct payments and enhanced unemployment insurance are among the
most effective forms of relief available. Not only do these payments help keep families out of
poverty, but they act as economic stimulus by increasing spending and supporting jobs,” the group writes.
The letter is signed by senators including Elizabeth Warren, Bernie Sanders, Cory Booker, and Kirsten Gillibrand.
The White House has not publicly commented on the group’s proposal.
Child Tax Credit increased for 2021
For this year only, the child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit. The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously children had to be 16 or younger.
The child tax credit has increased from $2,000 per child to $3,000 per child. Parents of children under age 6 would be eligible for an even larger $3,600 total credit.
The plan also includes $3,000 benefits to the parents of 17-year-olds who meet plan qualifications. Previously children had to be 16 or younger. The credit is also fully refundable.
For the standard $2,000 child tax credit, the phase out starts at $400,000 if filing jointly. According to the relief plan signed earlier this month, the additional credit will phase out for single filers at $75,000 and joint filers at $150,000.