AN urgent warning has gone out to apply for a $1,400 stimulus payment now as a Federal Reserve program deadline draws near.
Americans may still be able to receive up to $1,400 if they are eligible for a “plus-up” payment.
The plus-up payments are part of the American Rescue Act, signed into law by President Joe Biden in March.
The act included a provision that has sent $1,400 stimulus checks to tens of millions of Americans.
To be eligible for the plus-up payment you must have earned less in 2020 versus 2019.
For example, if something changed on your 2020 tax return – like you made less money or added a dependent – you may be eligible for the plus-up payments.
If you haven’t done so already, you need to file a 2020 tax return to get it.
However, you need to act quickly because the IRS has a December 31 deadline for issuing the payments.
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Americans can check the status of their stimulus check using the IRS Get my Payment Tool.
Stimulus checks given by the US government seem to be over unless Congress comes together on a decision. Until then, many states have come up with their own programs to help residents.
Read our stimulus checks live blog for the latest updates on Covid-19 relief…
The Federal Reserve has followed suit with its bond-building stimulus spree. The program was intended to keep interest rates low and promote more liquidity in the market and stimulate economic recovery.
Federal Reserve directors decided to reduce their bond-buying from $120billion per month to $105billion and finally $90billion.
Now, it’s cutting back by $30billion per month, meaning the program will completely wind down by March 2022.
The main reason for the change is the rise in inflation due to the purchasing of bonds. The Federal Reserve is decelerating stimulus quickly in fear of inflation getting stuck at a high rate.
BIDEN HOPES TO CONTINUE THE EXPANDED CTC
In another effort to help struggling Americans, President Biden wants to continue the child tax credit (CTC) payments.
The Biden administration originally proposed extending the payments through 2025, but that proposal was reduced to just one additional year.
CTCs are part of the nearly $2trillion Build Back Better Act which includes a slew of social spending programs and climate practices for the US.
The spending package failed to get the key vote of Democrat Sen. Joe Manchin.
Manchin expressed his concerns over the spending amount and the effects on inflation.
