There isn’t another round of stimulus checks being dished out to everyone, however, some people may see a $1,600 check soon.
About 1.5 million taxpayers will get a check this week from the IRS. The money is a refund after adjusted unemployment compensation.
Latest Stimulus Check from the IRS
The $1,600 is just an average, some may get more or less. President Joe Biden signed the America Rescue Plan back in March. It excluded about $10,200 in unemployment from taxable income. That only includes those who have a gross income of $150,000 or less.
Now, those who filed their taxes before the plan was signed into law are due for a refund, given the fact they now technically overpaid on their taxes. A person or family is only eligible for the check if they were on unemployment benefits for at least a week in 2020.
According to The Sun, these payments started being sent out via direct deposit starting on July 28. The paper checks started being released on July 30. You do not need to do anything to get this payment. It will automatically come to you if you are eligible. This is the fourth round of refunds that were related to the COVID-19 pandemic.
So far, there has been $10 billion put toward unemployment refunds. According to the Congressional Research Service, the unemployment rate reached 14.8% in April 2020. This is the highest its been since 1948 when data collection began. Labor force participation continues to remain lower than it was prior to the pandemic.
Delays for Funds
There are some delays for funds, however, given how many people need different forms of payment. There are about 15.6 million people waiting for tax returns, stimulus funds, and the new child tax credit payment. The IRS is working diligently to sort out all these payments.
“The IRS continues to work hard to process tax returns and amended returns to ensure that taxpayers receive the correct refund. For taxpayers who qualify for the Advanced Child Tax Credit or Economic Impact Payments after their returns or amended returns are processed, we will automatically make any additional payments. The IRS understands the importance of these payments, and we appreciate the patience of taxpayers during this unprecedented period,” the agency said in a recent statement to the public.
In terms of checking on status or qualification, check out the IRS site, here. It offers information on the payment schedule for the third round of Economic Impact Payments, tax return information, as well as new status updates for the Advance Child Tax Credit Payments.
The Child Tax Credit Payment is starting on September 15. Most people have also already received the first two advanced monthly checks. This year families are getting half the child tax credit in monthly installments. The rest will come during tax time. The fourth check will then come on October 15.