The rich people got $ 1,400, will this affect the new direct payments?
Federal stimulus checks to help those affected by the COVID-19 pandemic have become a powerful tool to help the economy rebound from damage caused by businesses forced to shut down or operate at reduced capacity. However, while some of the wealthiest Americans weren’t supposed to be eligible for direct payments, it turns out new data from the IRS shows some received at least the third payment, which turned out to be the highest amount.
IRS data shows 127,751 payments were sent to those with adjusted gross income over $ 200.00, for a total of $ 392.3 million paid, CNBC reports. It was a surprise because the US bailout was passed by Congress after the income thresholds for those eligible for a check were lowered slightly from the first two rounds of checks.
Third payments were only to be made to those with adjusted gross income of up to $ 75,000 for individuals, $ 112,500 for heads of households, and $ 150,000 for those who were married and jointly filing.
The amount that then went to those earning $ 200,000 or more was out of a total of 163.5 million total payments, which comes to a prize of $ 389.9 billion.
The same findings, from a Bureau of Labor Statistics analysis, also found that the largest number of payments were distributed to four states: California, Texas, Florida, and New York. The four states have the largest populations of the United States.
As to how those with incomes significantly above the cut-off, families with enough qualifying dependents who had those adjusted incomes might still be eligible, an IRS spokesperson said.
The rich who receive payments and do not use them have raised concerns about the impact of stimulus checks on the economy as things move back to the private sector, and the government should not be handing out so much. funds. While some were able to use the funds they received to invest or save, others were forced to use them for basic necessities such as food or to pay bills and try to get out of debt. The payments were found to have a direct impact on decreasing the amount of economic hardship faced by some families during the pandemic.
Because of the effect they had on many, calls continued to mount for a fourth check or for a program to be put in place by the government that would create automatic stabilizer payments that would be sent to Americans if certain thresholds were met. economic were achieved. like a number of unemployed. These payments would automatically be made to eligible Americans in these circumstances until the economy stabilizes.
The Biden administration hasn’t fully ruled out the possibility of future stimulus payments, although attention has shifted elsewhere for now. However, some will soon see money in their accounts as the Expanded Child Tax Credit is expected to start depositing money on a monthly basis directly into eligible accounts until December. These payments will include $ 300 for each dependent under the age of 6 as well as an additional $ 250 per dependent between the ages of 6 and 17.
Payments are expected to start hitting the accounts on July 15.