The American Rescue Plan, which would boost household income by $1,400 — $5,600 for a family of four — through a third wave of direct Economic Impact Payments, kicked off the year with a discussion. Now that the year is done, the key question is whether a fourth set of payments will be made in 2022, even if the checks would be smaller.
According to experts, it depends on who you are, where you live, what you do, and the political headwinds you face.
In 2022, Certain New Parents Will Receive $1,400
Parents who have a kid in 2021 may receive a $1,400 refund when they file their taxes in 2022. T , the majority of people have received their American Rescue Plan payments in full, but those who haven’t may be eligible for the Recovery Rebate Credit by claiming their Economic Impact Payment.
The head of marketing at Debt Bombshell says that if parents of children born in 2021 file their taxes first, they’ll be able to get a stimulus check early next year, as long as they do so first. “They would still be required to meet the income qualifying rules, which means they must earn no more than $75,000 per year, as with past stimulus payments.”
Some States Have Seized Control of the Situation
Depending on where you reside, you may be eligible for stimulus money in some form or another in 2022, regardless of what the federal government does — which is poor news for non-stimulus states looking for a fourth federal package.
“Some states are creating their own stimulus funds, making it even less probable that the federal government will issue additional stimulus checks,” says Anthony Martin, CEO and creator of Choice Mutual.
California, Georgia, Connecticut, Florida, New York, and Tennessee were among the states that did deliver additional stimulus money. Some of those states’ initiatives may carry over into the new year, but they aren’t the same everywhere. Others were reserved for students or administered through an expansion of programmes like SNAP. Some were practically universal checks, while others were exclusive to select occupations like teachers or first responders.
Don’t Get Your Hopes Up Beyond That
There is general agreement that the political will needed to bring through a fourth stimulus package simply does not exist.
“Unless conditions worsen drastically,” Carter Seuthe, CEO of Credit Summit Payday Loan Consolidation, said, “it’s unlikely that further direct stimulus funds will be given out next year.” “The present administration has shown little interest in enacting such measures through executive order, and Congress has been slow to fund large infrastructure spending.”
Only a disaster like March 2020 could elicit the kind of political will required to invest hundreds of billions of dollars on pandemic relief.
Riley Adams, a certified CPA, senior financial analyst for Google, and lead editor of Compare Forex Brokers, stated, “At this point, I’d say the likelihood of another round of stimulus checks are fairly minimal.” “For that to happen, data for Omicron cases would have to indicate a quick surge considerably above consensus predictions.”
Most, if not all, states would have to issue major shelter-in-place orders as a result of this. As a result, it would be difficult to coordinate and act on the need for another set of stimulus checks across the country when so many states would want to remain open rather than follow a shelter in place order to avoid a future economic crisis.”
A Fourth Round of Checks Could Be Harmful Rather Than Beneficial
It’s also not lost on policymakers that the most recent round of checks coincided with the highest rate of inflation in 40 years — and greater disposable money might turn up the heat even more.
“Injecting additional federal stimulus into the economy could further fuel the fires of inflation,” Adams said. “With more money in people’s pockets, consumer demand may increase up, exacerbating an already pressured supply chain.”