Can Americans Expect Stimulus Checks in 2022? Experts decide

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The year began with debate about America’s bailout plan, which would add $1,400 — $5,600 for a family of four — to household income through a third round of direct economic impact payments. Now that the year is over, the big question is whether there will be a fourth round of payments in 2022, even if the checks aren’t that big.

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GOBankingRates asked the experts, and the answer is that it comes down to who you are, where you live, what you do and what political headwinds stand in the way.

Some new parents will get $1,400 in 2022

Parents who had a child in 2021 could have their refunds topped up by $1,400 when they pay their taxes in 2022. According to Newsweek, most people have already received their American Rescue Plan payments in full, but those who haven’t may be able to claim their Economic Impact payment as a reimbursement 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, director of marketing at debt bomb. “As with previous stimulus checks, they would still need to meet income eligibility requirements, which means they don’t have to 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 may be entitled to some form of stimulus money in 2022, no matter what the federal government does — and that’s bad news for people in non-stimulus states who have been hoping for a fourth federal package.

“Some states are forming their own stimulus money, making it even more unlikely that the federal government will introduce 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 those states may continue those programs into the new year — but they’re not the same everywhere. Some took the form of near-universal exams, others were specific to certain professions, such as teachers or first responders, while others were reserved for students or administered through an extension of programs like SNAP.

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Beyond that, don’t get your hopes up

The broad consensus is that there is a lack of political will to push through a fourth stimulus package.

“Unless conditions worsen dramatically, it’s unlikely that more direct stimulus checks will be sent out over the next year,” said Carter Seuthe, CEO of Credit Summit Payday Loan Consolidation. “The current administration has shown little appetite to enact such measures by executive order, and Congress is reluctant to enact major infrastructure spending.”

Only a disaster like March 2020 could bring about the political consensus needed to spend hundreds of billions of dollars on continued pandemic relief.

“As of this writing, I would say the likelihood of another round of stimulus checks is pretty slim,” said Riley Adams, licensed CPA, senior financial analyst for Google and editor-in-chief of Compare forex brokers. “For that to happen, the data would need to show a rapid increase well above consensus expectations for Omicron cases.” This should result in large shelter-in-place orders being issued in most if not all states. As a result, it would be difficult to coordinate the need for another round of stimulus checks at the national level and take action when so many states chose not to follow a locally ordered order, preferring to remain open to a possible one avoid downturn economy.”

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A fourth round of checks could do more harm than good

It has also not escaped policymakers that the highest rate of inflation in 40 years came just after the last round of checks – and more disposable income could fan the heat even further.

“Another government stimulus could fan the flames of inflation even more,” Adams said. “As people have more disposable income, consumer demand could pick up and exacerbate an already stressed supply chain.”

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