Since the COVID-19 pandemic began, stimulus cheques have had a significant effect on the lives of families in America. And they might still have an impact on the size of your bank account in 2023 as well as the rest of this year. Here are four facts regarding stimulus payouts you need to know right now to make sure you’re ready for the financial impacts.
1. States Continue To Send Checks
Some Americans contin ue to see increases in their bank accounts as a result of stimulus payments. Checks for financial relief have been made available to certain or all inhabitants in several different states. Some of the payouts will be made after this year and at the start of the following year.
2. Legislators Advocating For More Government Stimulus Funding
Payments made by states, unlike state stimulus checks, are exclusively accessible to a select group of citizens who reside in the locations where the money is being distributed. But there is still a potential that additional relief from Washington, D.C., may be made accessible to everyone. Recently, a well-known Democrat wrote an open letter reminding his colleagues to renew the enhanced Child Tax Credit made possible by the previous federal COVID relief law. If lawmakers accept this step, eligible parents might get up to $3,600 in financial aid for each child.
3. Tax Return Check Might Be Reduced
If the federal or state government decides to increase direct payments, that would be beneficial for your budget, but there is some bad news. When they pay their 2022 taxes the following year, many people will get a significantly smaller tax return. This is because the increased tax credit was discontinued by the federal government and several other COVID relief-related special tax breaks are also coming to an end. The IRS recently issued a warning to taxpayers about this problem and advised them not to anticipate receiving a significant refund this year reports Fool.
