Can Americans Expect Stimulus Checks in 2022? Experts weigh

The year opened with a debate over the US bailout, which would increase 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 the checks aren’t that big.

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GOBankingRates asked the experts, and the answer is 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 repayments supplemented by $ 1,400 when they do their taxes in 2022. Most people have already received all of their payments from the US bailout, according to Newsweek, but those who did not might be able to claim their economic impact payment as a recovery reimbursement credit.

“As long as they file their income 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 income eligibility criteria, meaning they should not earn more than $ 75,000 per year.”

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Some states have taken matters into their own hands

Depending on where you live, you might be eligible for stimulus funding in 2022 in one form or another, no matter what the federal government does – and that’s bad news for people in states without stimulus. who were hoping for a fourth federal package.

“Some states are making their own stimulus money, which makes it even more unlikely that the federal government will create more stimulus checks,” Anthony Martin, CEO and Founder of Mutual of choice.

Many states – including California, Georgia, Connecticut, Florida, New York, and Tennessee – have actually made additional stimulus payments. Some of these states might continue with these programs in the New Year, but they are not the same everywhere you go. Some took the form of almost universal checks, others were specific to certain professions like teachers or first responders, while others were reserved for students or administered through an expansion of programs like SNAP.

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Beyond that, don’t you worry

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, it is unlikely that more direct stimulus checks will be sent next year,” said Carter Seuthe, CEO of Credit Summit Payday Loan Consolidation. “The current administration has shown little appetite for passing such executive orders, and Congress is dragging its feet to pass 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 alleviating the pandemic.

“At this point, I would 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 that to happen, the data would have to show a rapid spike well above consensus expectations for Omicron cases. This is expected to translate into 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 would choose not to track a shelter in place, preferring instead to stay open. to avoid a potential slowdown in the economy. “

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Fourth round of checks could do more harm than good

Policymakers have also not escaped the fact that the highest rate of inflation in 40 years came immediately after the last round of checks – and that higher disposable income could turn the heat up further.

“Sucking more federal stimulus into the economy could further fuel the flames of inflation,” Adams said. “With people having more disposable income, consumer demand could increase and exacerbate an already stressed supply chain. “

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This article originally appeared on Can Americans Expect Stimulus Checks in 2022? Experts weigh

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