Stimulus payments the Internal Revenue Service is distributing to some 1 million taxpayers could be especially beneficial to Black Americans, who generally have lower and more volatile incomes than their white counterparts.
In 2023, the median income was $56,490 for Black households and $89,050 for white households, according to a recent U.S. Census Bureau report.
The IRS announced in December that it would be distributing about $2.4 billion, and that, by the end of January, each eligible taxpayer could receive a stimulus check for up to $1,400.
“Having the financial tumult of the COVID-19 pandemic be followed by more expensive prices for many of the consumer goods that we rely on only adds to the need for these checks,” Michael Neal, a senior fellow in the Housing Finance Policy Center at the Urban Institute, told Capital B. “Hopefully these checks will meet the moment, especially for vulnerable families.”
The IRS created this round of stimulus checks after an internal data review showed that many eligible taxpayers hadn’t claimed the Recovery Rebate Credit — a refundable credit for people who didn’t receive one or more previous stimulus payments — on their 2021 tax returns.
In 2020, President Donald Trump sparked backlash after his name appeared on checks the IRS disbursed to 35 million people, with many saying that his administration wanted to take credit for helping a struggling country when it had been slow to respond to the pandemic.
It was an unprecedented move for a president, one that led some to mistakenly believe that the checks came from Trump instead of from legislation authorized by Congress.
“Looking at our internal data, we realized that 1 million taxpayers overlooked claiming this complex credit when they were actually eligible,” IRS Commissioner Danny Werfel said in the December statement, calling the payments an example of the agency’s “commitment to go the extra mile for taxpayers.”
Read on to find out if you qualify for a stimulus check.
Who will receive a stimulus check?
This round of money involves the third batch of stimulus payments — or economic impact payments — that the IRS distributed in response to the COVID-19 pandemic. The first batch went out in March 2020, and the second batch that December.
In spring 2021, the agency used information from taxpayers’ 2020 or 2019 returns to begin sending out this third batch of payments in advance. If you didn’t receive this money when you were eligible for it or if you didn’t get as much as you were supposed to, you were qualified to use Line 30 of the 1040 to claim the Recovery Rebate Credit.
Taxpayers who will receive a stimulus check left that information blank on their 2021 return or wrote “$0” when they qualified for the credit.
The income limits for claiming the credit were lower than the income limits for previous stimulus payments. If a single person earned more than $80,000 in their adjusted gross income in 2021, they weren’t eligible for the credit. For married couples filing jointly, that limit was $160,000.
How much will I receive?
The amount depends on several factors, the IRS said.
For instance, an eligible single person with no dependents could receive up to $1,400; an eligible married couple that filed a joint return could receive up to $2,800. If that married couple had two qualifying dependents on their 2021 return, they could receive up to $5,600 (dependents could include grandparents, parents, adults with disabilities, and college students, not just children). Still, these amounts could be lower, depending on your income.
Federal research found in 2021 that the more than $400 billion distributed during the first two rounds of stimulus payments lifted 11.7 million people out of poverty in 2020. The largest group of people who benefited included 1.3 million Black Americans between the ages of 18 and 64. This money also lowered the Black child poverty rate from 23.7% to 16.9%, helping 756,000 Black children.
Do I need to do anything to get the check?
Eligible taxpayers don’t need to take any steps to receive their money.
“To minimize headaches and get this money to eligible taxpayers, we’re making these payments automatic, meaning these people will not be required to go through the extensive process of filing an amended return to receive it,” Werfel said.
Of the primary racial and ethnic groups in the U.S., Black Americans were among those who received stimulus payments at lower rates, joint federal research found in 2023.
When will the money arrive?
The IRS didn’t give a precise date for when eligible taxpayers should expect their check, but it said in its statement that the money “should arrive in most cases” by the end of January.
Keep an eye on your bank account: The money could already be there.
The money will be delivered to the bank account that eligible taxpayers listed on their 2021 returns or to their address of record, according to the IRS.
Additionally, the agency will send a letter to eligible taxpayers, informing them about their 2021 Recovery Rebate Credit payment.
The IRS has announced that they will be sending out $2.4 billion in stimulus checks to eligible Americans as part of the latest round of economic relief measures. These checks are intended to help individuals and families who have been struggling financially due to the ongoing COVID-19 pandemic.
If you are eligible to receive a stimulus check, you can expect to receive a direct deposit or a physical check in the coming weeks. The amount of the check will vary depending on your income level and other factors, but most eligible individuals can expect to receive a payment of up to $1,400.
It’s important to note that not everyone will qualify for a stimulus check, so be sure to check the IRS website for more information on eligibility requirements. And if you do receive a check, be sure to use it wisely to help cover essential expenses or save for the future.
Overall, this latest round of stimulus checks is a welcome relief for many Americans who have been struggling in recent months. Let’s hope that this financial assistance helps to provide some much-needed relief during these challenging times.
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IRS, stimulus checks, $2.4 billion, eligible Americans, economic relief, COVID-19, government aid, financial assistance, pandemic relief, stimulus package
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