Inflation is a big concern in the United States. This caused prices to soar last year and left many Americans struggling to meet their basic needs.
There are several ways to get some relief. One way is by receiving an extra stimulus check from the federal government.
Are More States Taking Part in Stimulus Payments
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One-time federal payments called stimulus payments. Stimulus checks can be part of larger stimulus programs that include fiscal and tax policy changes and business tax credits.
Many states have passed legislation and are considering implementing further stimulus payments as inflation continues to eat away at household budgets. Florida, for instance, recently announced that low-income families will receive $450 per child, in an effort to ease the strain decades-high inflation has on their pockets.
The IRS has also begun sending supplemental payments to people whose stimulus checks were based on their 2019 tax return, but whose 2020 return showed they were eligible for a bigger payment. This third batch includes a total value of more than $10 billion and about half were direct deposit payments, while the other half were paper check payments.
The HPS data shows that individuals are more inclined to spend their stimulus payments on paying off debt (79%) or to increase savings (90%) than they are to cover expenses. The HPS finds, however, that older generations such as Generation X or Silent are less likely to spend their stimulus payments on expenses.
Will There Be a COVID-19 Surge?
COVID-19 infection rates are declining in the US as we enter the autumn and winter. This could mean that the country has not experienced a similar surge to the one in Europe this summer and last year.
Experts say that there may be some factors that can change this. The emergence of a gaggle of new immunity-dodging variants derived from the Omicron strain, for instance, could accelerate a rise in cases.
A new study explains that some of these viruses mutate, or evolve, in ways that make them more infectious and evade both natural and vaccine-induced immunity. Those new variants can also spread more easily in colder climates.
That may put a strain on health systems that have been dealing with multiple overlapping waves of flu and RSV over the past few winters. Hospitals may also have to deal with stress-related problems and backlogs during bad flu seasons.
Is there a fourth stimulus payment?
Since the start of COVID-19, Congress has passed three bills that included stimulus checks (also known as Economic Impact Payments). Each eligible American received more than $3,000 in these payments.
These payments saved millions of Americans from suffering hardship but they were not sufficient. Many Democrats called for another stimulus package, but there has not been much progress.
Currently, lawmakers are working on two different plans to help boost the economy. However, Congress has not yet set a date for either of these plans.
One is the Build Back Better plan, which aims to improve transportation infrastructure and affordable housing. American Jobs Plan is another, and it aims to increase the employment market and to encourage people to go back to work.
Experts say another federal stimulus is unlikely to be issued anytime soon, despite the economic recovery and record-low unemployment rates. However, there are some states that are beginning to approve fourth stimuli checks. This can give people struggling to make ends meets a little bit of hope.
Is There a Fourth Payment from the Stimulus Fund in 2022?
To help Americans achieve a better financial position, the federal government already approved three rounds of Economic Impact payments (stimulus check) via IRS. But some people are wondering whether or not there will be a fourth stimulus check in 2022?
This may be a relief for some people who struggled during the pandemic, but it is not a replacement for debt. Rather, it can be a supplement to help you build your budget and personal financial plan around your current income.
For this reason, it is important to understand how these payments work and what you should do if you are not receiving a fourth stimulus payment.
Taxpayers must file their income tax returns for the first and second rounds. The IRS reviews previous payments and makes catch-up, plus-up, or catch-up payments to taxpayers who have missed or underpaid. These payments are not included in the 2021 refunds and can be claimed by filing your tax return.
