For anyone waiting on the latest update regarding when more stimulus payments will arrive, this is proving to be the mother of all announcement weeks when it comes to stimulus check news. And it’s only Tuesday.
On Monday, California Gov. Gavin Newsom signed a budget deal into law that will, among other things, send Californians a stimulus check this fall. The IRS, meanwhile, said on Tuesday that it’s prepping refunds for almost 4 million taxpayers — refunds, that is, which are connected to the $1.9 trillion stimulus legislation that was passed in March. And, of course, on Thursday the tax agency will also kick off a new wave of stimulus check distributions targeted at some 36 million families. In this post, we’ll take a closer look at what all is coming soon as part of these developments.
More stimulus checks in California
First, the new wave of stimulus checks for Golden State residents.
As part of the state budget deal Newsom signed Monday, millions of Californians who make between $30,000 and $75,000 a year will get an extra $600 payment later this fall. The payments are expected to go out sometime in early September. And they’re an extension of the California stimulus effort that already sent out $600 stimulus checks to low-income state residents.
Two other important details to note about this development: Per the governor, families with children qualify for an additional $500, on top of the $600 noted above. However, California residents who got $600 as part of the earlier round of stimulus payments won’t be eligible for this new $600 payment.
This is the largest state tax rebate in history.
If you earn up to $75,000 a year — you can expect to see $600 in your bank account this fall.
If you have kids — you can qualify to receive an additional $500, regardless of your immigration status. https://t.co/zYDJ66cqpj
— Gavin Newsom (@GavinNewsom) July 13, 2021
Now, let’s talk about the forthcoming IRS refunds, which involve unemployment income.
Normally, when a person is laid off and then draws unemployment benefits, the IRS counts that as taxable income the following year. However, the massive stimulus legislation that President Biden signed in March included a provision that excluded a portion of peoples’ unemployment income from last year for taxation purposes. Which was good news — except for those people who’d already filed their federal tax returns early. Before March, that is, which is when the legislation with this provision went into effect.
The IRS has since gone back to the affected returns, recalculated them, and is sending out refunds where appropriate. On Tuesday, the tax agency said it’s preparing to send out almost 4 million such refunds. And here’s what you need to know about how they’ll be sent out. This, by the way, also counts as stimulus check news of sorts, since these refunds are a byproduct of the $1.9 trillion stimulus law.
The IRS refunds issued as direct deposits will start on July 14. The refunds by paper check will begin July 16. Moreover, the tax agency says more such refunds are coming throughout the summer.
More stimulus check news
And now, the last piece of stimulus payment news. Which is, of course, one we’ve been sharing incremental updates about for weeks now.
As we noted in our post earlier Tuesday, new stimulus checks for an estimated 36 million families will begin going out on Thursday, July 15. These will be the first of six checks — and, more specifically, they’re actually an advance payment of a tax credit.
Families are getting the six checks, monthly, through the end of this year. They’ll generally be for either $250 or $300, per eligible child. For each child under age six, parents get the larger amount. And the amount will be $250 for each child between ages 6 and 17.