Many Americans are anticipating another government stimulus payout as the COVID-19 outbreak continues until 2022. Three stimulus check packages have been passed on the federal level as a result of the coronavirus outbreak. Direct payments of $1,200 were given in the first stimulus package, while $600 was delivered to Americans in the second.
President Joe Biden's American Rescue Act included $1,400 payouts for Americans in the latest stimulus disbursements. Although a fourth stimulus package appears improbable given the economy's and inflation's swift recovery, we offer a few reasons why it may happen.
Joe Biden's declining approval ratings
According to data from Gallup, President Biden had a 56 percent popularity rating just a few months ago. His approval rating has now dropped to 43 percent. After signing the third stimulus package into law, he had a better approval rating at the start of the year. If Biden's poll ratings continue to plummet, he may be forced to call for another round of stimulus checks.
In a March survey conducted by Morning Consult and Politico, roughly four out of five Americans approved the $1,400 stimulus cheks. However, he would have to go through two corporate Democrats, Joe Manchin and Kyrsten Sinema, who have been big roadblocks to the President's agenda.
Another economic disaster
The purpose of stimulus payments is to give relief during difficult economic times. Unemployment claims are currently at a 52-year low, and consumers are showing robust economic demand.
While COVID-19 instances continue to rise throughout the holiday season, people who have been vaccinated are unlikely to become very ill; nevertheless, things might change if the pandemic takes an unforeseen turn. This might happen if the Omicron or a new variation arises, reducing the vaccine's potency dramatically - or if further shutdowns occur, The Sun reported
COVID-19 Omicron variant
The fact is that a new viral strain has the potential to completely change the world. Omicron has swiftly become the most prevalent coronavirus strain in the US; and while it appears to be more infectious than prior strains, early evidence suggests it may be less severe. Additionally, deadlier strain might quickly sweep the country, prompting even another lockdown, due to its fast transmission despite widespread immunity.
It's probable that the enhanced Child Tax Credit may be renewed, allowing at least some families to receive additional funds from the federal government in 2022 though this isn't fully certain at this moment, as per The Ascent via MSN.
What does the letter from the IRS about stimulus checks mean?
If you receive a letter from the IRS in the coming weeks, don't be startled. The government is just informing recipients about the third stimulus payment, which was distributed in 2021. The letters will begin to be sent out in late January.
"These letters can assist individuals or their tax professionals in preparing their federal tax return for the year 2021," the IRS said in a statement. The document, titled Letter 6475 "Your Third Economic Impact Payment" will include how much stimulus money you got in 2021, as well as any so-called plus-up payments.
You can use it to see if the Recovery Rebate Credit is available for your 2021 tax return. Although stimulus cheques are not taxable, they must be recorded on 2021 tax returns, which must be submitted before the end of the year.
Starting in March of last year, the 2021 stimulus checks were distributed to eligible recipients. Each qualifying taxpayer and each of their dependents can receive up to $1,400 in tax relief. If you have another kid in 2021, for example, they will be eligible for their own payout, according to CNBC.