The year opened with a debate on the U.S. bailout plan, which would continue to increase household income by $ 1,400 – $ 5,600 for a family of four – through a third round of direct economic impact payments. Now that years are overthe big question is whether 2022 will see a fourth round of payments, even though the checks are not that big.
GOBankingRates asked the experts and the answer is that it depends on who you are, where you live, what you do and the political headwinds that stand in the way.
Some new parents will receive $ 1,400 in 2022
Parents who had a child in 2021 may have their refund filled with $ 1,400 when they pay their taxes in 2022. Most people have already received their full payments from their U.S. rescue plan, according to Newsweek, but those who have not, may be able to claim their financial impact payment as a recovery rebate credit.
“Provided they file their tax returns first, parents of children born in 2021 will be eligible for the stimulus check early next year,” said Scott McKinney, marketing manager at Debt bomb. “As with previous stimulus checks, they would still be required to meet the income requirements, meaning they do not have to earn more than $ 75,000 a year.”
Some states have taken matters into their own hands
Depending on where you live, you may be eligible for stimulus money in 2022 in some form, no matter what the federal government does – and that’s bad news for people in non-stimulus states who were hoping for a fourth federal package.
“Some states form their own stimulus money, making it even more unlikely that the federal government will create more stimulus checks,” Anthony Martin, CEO and founder of Options Mutual.
Many states – including California, Georgia, Connecticut, Florida, New York and Tennessee – actually provided additional stimulus payments. Some of these states may continue these programs into the new year – but they are not the same everywhere you go. Some took the form of almost universal controls, others were specific to certain professions such as teachers or first aiders, while others were reserved for students or administered through an extension of programs such as SNAP.
Beyond that, do not get your hopes up
There is a widespread consensus that the political will required to push a fourth stimulus package through simply does not exist.
“Unless conditions get dramatically worse, it’s unlikely more direct stimulus checks will be sent out next year,” said Carter Seuthe, CEO of Credit Summit Payday Loan Consolidation. “The current administration has shown little appetite for adopting such measures by a decree, and Congress has dragged its feet to adopt major infrastructure expenditures.”
Only a disaster like March 2020 could create the kind of political consensus needed to spend hundreds of billions of dollars on continued pandemic assistance.
“At this point, I would say the odds of another round of stimulus checks are pretty small,” said Riley Adams, licensed CPA, senior financial analyst at Google and editor-in-chief of Compare Forex Brokers. “For that to happen, data must show a rapid increase well above the consensus expectations for Omicron cases. This would have to result in large shelter-in-place orders coming out in most, if not all, states. hence, it would be difficult to coordinate and respond to the need for another round of stimulus controls at national level, when so many states would choose not to follow a crisis center in place and instead prefer to remain open to avoid a potential downturn in economy.”
A fourth round of checks could do more harm than good
Nor is it lost on politicians that the highest inflation rate in 40 years immediately came on the heels of the last round of controls – and more disposable income could turn up the heat even more.
“Injecting more federal stimulus into the economy could boost the flames of inflation even more,” Adams said. “With people having more income available, consumer demand may increase and exacerbate an already stressed supply chain.”
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This article was originally published on GOBankingRates.com: Can Americans expect stimulus checks in 2022? Experts weigh in