Can a fourth incentive check be paid before December 2021? – Community News
Stimulus Check

Can a fourth incentive check be paid before December 2021?

After sending the third incentive check, personal income rose to $24.1 billion in March 2021. Since then, the figure has been on a downward trend, and in September reached $20.4 billion. One of the main factors driving the decline was the termination of federal pandemic-related unemployment benefits programs that have dropped from a two percent on average of personal income from April to August to 0.5% in September.

Since unemployment benefits exceed eight million workers in the United States have quit their jobs, providing new evidence that the benefits didn’t stop people from returning to work. Still, nearly 30 percent of American adults still had problems paying usual household expenses from early October as the damage to the economy and livelihoods from the Covid-19 pandemic continues.

With prices rising across the economy and the holiday season approaching, many are hoping Congress will pass another one round of direct payments in December. However, it seems unlikely. A fourth stimulus control was not included in the Build Back Better Act or Reconciliation Account which was approved by the House of Representatives on Friday 19 November. While a stimulus check was not included, if approved by the Senate, the bill would current accrual of the child discount for another year, provide some relief to families.

Background and extension of child tax credit

Changes in the value and distribution of the child discount have been made under the American rescue plan. These changes made people more eligible for: twenty-four million children and in July, the Internatl Revanue Service began handing out monthly payments. For every child among the six families receive $300 and those between the ages of six and 17 receive a payment of $250 is made. The last payment in 2021 will be made on Dec 15, and the remaining value of the credit — half — will be paid when families file their tax returns in the spring.

Studies of the first payments, which started in July, have reduced the hardship for families with children, Lifting 3 million children out of poverty. the acclaimed 40 percent reduction in child poverty by 2025 will not be achieved, as it would only be if extended for the full five years, but this was reduced. Researchers at the Center for Budget and Policy Priorities have also found that “the vast majority of low-income parents spend their child tax credit on basic needs such as food, housing, utility bills and education, that can give their children a stronger start in life.”

Build Back Better extension

While the extension, which is included in the Build Back Better Act, is only for one year, and not until 2025, as the White House had requested, the change that would make the tax provision fully refundable would become permanent. This will be a boost for low-income families who previously could not start claiming the credit unless they deserved more $2,500 prior to changes made under the US bailout plan. Even then, parents would only gradually receive more of the credit as their income increased until they could claim the full credit.

By making the fully refundable aspect of the Child Tax Rebate permanent, even if a new extension cannot be carried forward next year, all taxpayers with eligible children can claim $2,000 until 2025 when the credit drops to $1,000 per child under 17.