Fourth stimulus check: Petition for $2,000 monthly payments grows as IRS to send out $1,600 tax refunds
A PETITION calling on Congress for $2,000 in monthly stimulus checks is gathering pace as the IRS is poised to send out $1,600 tax refunds.
The petition on Change.org currently stands at more than 2.7million signatures, not far off its goal of three million.
A restaurant owner started the online petition more than a year ago, calling for targeted stimulus money.
The news comes as the IRS is due to issue some 1.5m “surprise” tax refunds.
The refunds are expected to average more than $1,600 as it continues to adjust unemployment compensation from income tax returns filed in the past.
Refunds via direct deposit started earlier this week and paper check refunds started today.
To qualify for the payment, a taxpayer must've been on unemployment benefits for at least one week in 2020.
Most taxpayers will receive the funds automatically, and shouldn't have to do anything in order to receive a payment.
FOURTH ROUND OF REFUNDS
The IRS said it is the fourth round of refunds related to the unemployment compensation exclusion provision.
Since May, the IRS has issued more than 8.7 million unemployment refunds totaling around $10 billion.
Additional payments are expected later this summer.
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The first round went to those with the simplest tax returns, followed by people who filed more complex returns.
The average refund amount is higher for this round, the IRS said, because it included adjustments to the Advance Premium Tax Credit (APTC).
APTC is a credit that can be used to lower monthly health insurance premiums.
Child Tax Credit payments, the latest federal attempt to kick start the economy, allows eligible families to get as much as $3,600 for each child under the age of six.
The advance tax credit payments will be $3,000 annually per child between the ages of 6 and 17.
The first of six monthly payments began on July 15, for those who qualify for the Child Tax Credit scheme.
In a statement, the agency said: "The IRS continues to work hard to process tax returns and amended returns to ensure that taxpayers receive the correct refund.
"For taxpayers who qualify for the Advanced Child Tax Credit or Economic Impact Payments after their returns or amended returns are processed, we will automatically make any additional payments.
"The IRS understands the importance of these payments, and we appreciate the patience of taxpayers during this unprecedented period."
Recent analysis carried out by the Institute on Taxation and Economic Policy recently revealed that the value of federal stimulus dollars averages $3,450 for the bottom 60 percent of earners across the country.
As expected, lower earners are benefiting the most from the financial help offered by the government, with households earning less than $21,300 annually expected to see their income rise by around 33 percent in 2021.
In total, households living within the income range will pocket around $3,590.
Those making between $21,300 and $39,800 will be paid $3,340 by the government, and those making between $39,800 to $65,000 will take home $3,370.