What Are the Odds of a Fourth Stimulus Payment?

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What Are the Odds of a Fourth Stimulus Payment?

Posted by Infinite Wealth Advisors, LLC
5 months ago | May 5, 2021

Since the passage of the American Rescue Plan in March, the IRS has distributed more than $379 billion in stimulus funds to the American public. While a welcome relief to millions of households, poll respondents say the money won’t last three months. So as our economy continues to rebound in the wake of the pandemic, many public policy experts and media outlets speculate on the possibility of a fourth stimulus package. But is there any real truth behind those speculations?

First, let’s take a look at where we stand right now. Stimulus checks in the amount of $1400 have been sent to much of the country, with a few still waiting to receive their payments.

Congress also passed an expanded child tax credit, which will be fully refundable, in the amount of $3600 for children from birth to age 6, and $3000 for those aged 6 to 17. While this credit is intended to be applied to 2021 federal income tax returns, half of the money will be paid upfront during this year. The IRS says those payments will begin to roll out in July.

And for those who are still unemployed, the federal bonus of $300 weekly will continue to be added to state checks through September 6. It is possible that Congress will extend that deadline, but nothing has been proposed as of yet.

Now for the idea of a fourth stimulus package: No, a fourth payment has not yet been introduced for vote in Congress. But a group of 21 Senators has been publicly discussing the prospect of $2,000 monthly recurring payments to be distributed until the pandemic has ended. Some polls show that up to 65 percent of Americans support the idea.

For now, the idea is all talk, although it does appear to be gaining support. We should all remember the old adage: Don’t count your chickens before they hatch. Don’t count on a fourth stimulus, and plan around the measure we currently have in motion. But if you need help adjusting your financial plan for either the near or long-term future, give us a call and we can schedule an appointment.

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