Since the beginning of the COVID-19 pandemic, stimulus checks have significantly impacted American families’ daily lives. They have already affected the size of your bank account this year, and they may continue to do so until the end of the year and even into 2023.
Here are four facts regarding stimulus checks you should know to ensure you’re financially ready for the effects.
States May Still Send Stimulus Checks
Some citizens of the United States are still seeing their bank balances increase due to stimulus payments. Several jurisdictions have given the go-ahead for financial aid to be distributed to locals. Some of these disbursements are scheduled for the latest year and early in 2018.
State stimulus payments, in contrast to federal ones, are restricted to a smaller subset of residents living in the states that have opted to do so. However, there is still hope for additional nationwide assistance from Washington, D.C.
If your state or the federal government decided to make more direct payments, that would be great news for your finances. When filing taxes in 2022, many taxpayers might expect considerably smaller refunds.
This is because the federal government has decided not to renew the enhanced tax credit, and other special tax reductions created under COVID-19 assistance are also set to expire.
The IRS has recently warned taxpayers about this problem, urging them to not put their hopes too high for tax refunds this year.
Last but not least, you should know that the likelihood of receiving a federal stimulus payment decreases significantly after January 3, 2023. By the time the next Congress is sworn in, the House of Representatives will be under Republican control.
Since the GOP has not voted in favor of recent stimulus payments and Democrats will no longer be able to pass a COVID relief bill without their support, any additional federal stimulus aid is likely off the table.
Read more: Stimulus checks update: $1,050 direct payments will be sent to eligible Americans by the End of 2022
You May Still Get A Holiday Bonus!
A holiday bonus is a financial reward given to employees at the end of the year to show their appreciation for their hard work throughout the preceding year.
Bonuses are typically awarded based on particular standards, including but not limited to, years of service, base salary, and employee performance. Bonuses might come in the form of cash payments, gifts, or even time off work.
Additionally, to boost morale in the workplace, businesses are recommended to avoid giving out bonuses to all staff. Companies should set aside money each year to compensate these bonuses from the holiday bonus in that it is not fixed and depends
A performance-based bonus is another sort of bonus that can be given to employees. The performance-based bonus is different from the holiday bonus in that it is not fixed and is instead depending on how well employee executes their job. These bonuses should be given out in addition to the Christmas bonus, but not as a replacement for it.
Read more: Stimulus checks update: Major improvements for Ohio financial assistance is on the way!
