Can Americans expect stimulus checks in 2022? Experts weigh
The year opened with a debate over the US bailout, which would then boost household income by $1,400 – $5,600 for a family of four – through a third round of direct economic impact payments . Now that the the year is over, the big question is whether 2022 will see a fourth round of payments, even if checks aren’t as big.
GOBankingRates asked the experts, and the answer is that it depends on who you are, where you live, what you do, and what political headwinds stand in your way.
Some new parents will receive $1,400 in 2022
Parents who had a child in 2021 could see their refunds increased by $1,400 when they do their taxes in 2022. Most people have already received their full US bailout payments, according to Newsweek, but those who didn’t might be able to claim their economic impact payment as a stimulus rebate credit.
“Provided they file their tax returns first, parents of children born in 2021 will be eligible for the stimulus check early next year,” said Scott McKinney, chief marketing officer at debt bomb. “As with previous stimulus checks, they would still be required to meet the income eligibility criteria, which means they must not earn more than $75,000 per year.”
Some states have taken matters into their own hands
Depending on where you live, you might be eligible for stimulus money in 2022 in one form or another, no matter what the feds do — and that’s bad news for people in states without stimulus who hoped for a fourth federal package.
“Some states are forming their own stimulus funds, which makes it even more unlikely that the feds will create more stimulus checks,” Anthony Martin, CEO and Founder of Mutual Choice.
Many states – including California, Georgia, Connecticut, Florida, New York and Tennessee – have actually made additional stimulus payments. Some of these states might continue these programs until the new year, but they are not the same everywhere you go. Some took the form of near-universal checks, others were specific to certain professions like teachers or first responders, while others were restricted to students or administered through an expansion of programs like SNAP.
To learn: 10 myths about early retirement
Beyond that, don’t expect
There is a broad consensus that the political will that would be needed to push through a fourth stimulus package simply does not exist.
“Unless conditions worsen significantly, more direct stimulus checks are unlikely to be sent next year,” said Carter Seuthe, CEO of Credit Summit Payday Loan Consolidation. “The current administration has been unwilling to pass such measures by executive order, and Congress has dragged its feet on passing major infrastructure spending.”
Only a calamity like March 2020 could muster the kind of political consensus needed to spend hundreds of billions of dollars to continue pandemic relief.
“At this point, I’d say the chances of another round of stimulus checks are pretty slim,” said Riley Adams, chartered CPA, senior financial analyst for Google and editor of Compare Forex Brokers. “For this to happen, the data would need to show a rapid spike well above consensus expectations for Omicron cases. This should result in large shelter-in-place orders in most, if not all, states. As a result, it would be difficult to coordinate and take action on the need for another round of nationwide stimulus checks when so many states choose not to follow shelter in place, preferring instead to stay open. to avoid a potential downturn in the economy.”
A fourth round of checks could do more harm than good
Policymakers have also not forgotten that the highest rate of inflation in 40 years came immediately after the last round of controls – and higher disposable income could further increase the pressure.
“Injecting more federal stimulus into the economy could fan the flames of inflation even further,” Adams said. “With people with more income, consumer demand could increase and exacerbate an already strained supply chain.”
More from GOBankingRates
This article originally appeared on GOBankingRates.com: Can Americans expect stimulus checks in 2022? Experts weigh