The American Rescue Plan brought us a third stimulus package, in the amount of $1400 each, including children up to age 17. The IRS has distributed more than $379 billion in payments since the bill passed in March. And yet, some polls show that the money won’t last more than three months for most households. So, will there be a fourth stimulus package? And how much could it be worth, both to us personally and to the economy?
Indeed, a group of 21 senators has introduced the idea of a fourth stimulus package, this time in the form of recurring monthly payments of $2000 each. Some polls show Americans in favor of such a deal, with one poll demonstrating support from 65 percent of respondents. However, no bills have yet been introduced to make this proposal a reality.
The idea behind stimulus payments is not only to help struggling households to pay their bills, but to quite literally “stimulate” the economy. As recipients of the money go out and spend it, theoretically that activity is supposed to boost a struggling economy.
The verdict is that while a fourth stimulus is certainly being discussed, and does seem to be gathering support, we’re a long way away from that proposal becoming reality. For now, it would be wise not to count on any further stimulus checks, whether from a personal or business perspective.
However… the expanded child tax credit for 2021, in the amount of $3600 for children up to age 6 and $3000 for children aged 6 to 17, is set to be distributed beginning in July. The IRS will issue half of this credit up front, through regular payments, and the other half can be claimed by taxpayers next spring.
For those on unemployment, the federal “bonus” of $300 weekly, on top of state benefits, will extend through September 6. Theoretically both of these measures could help to support an economic bounceback.
We will continue to update you on the status of the economy, and any further economic stimulus measures initiated by the government. In the meantime, remember that we’re here for you if you need to discuss your financial plan. Just call our office to set an appointment, and we can help you make any adjustments that might be necessary during these trying times.