Will There Be More Direct Payments in 2024?

October 23, 2024

Americans have been holding their breath for another stimulus payment since the last one was issued in 2021, and many are wondering if a new round will be in store in 2024.

The public saw more than 476 million payments totaling $814 billion in financial relief as the economy withstood intense pressure and a global pandemic. Full amounts depended on income, tax filing status and the number of dependents that were declared.

Courtesy of the American Rescue Plan Act, the IRS issued its last $1,400 check to taxpayers two years ago, but many have been struggling since the last payment was sent out.

Still, Zack Hellman, the founder of Los Angeles accounting firm Tax Prep Tech, said it is unlikely a new payment is being planned by the federal government, four years out from the pandemic.

"The focus has shifted to economic recovery, and additional stimulus checks are not a part of current legislative agendas," Hellman told Newsweek.

Direct Payments Are Still Available

However, just because federal stimulus checks aren't likely doesn't mean Americans can't grab new direct payments.

Depending on the state you live in, you might qualify for some extra cash via rebates or tax credits.

Pennsylvania, Alaska, Massachusetts, Minnesota, Montana, New Mexico, Washington and more states have implemented several types of relief for selected residents or taxpayers.

Pennsylvanians are eligible for an extra $1,000 after the state expanded its property tax and rent rebate program.

In 2024, Gov. Josh Shapiro said that older residents would receive more financial help courtesy of his signed Act 7 of 2023. The law expanded the Property Tax/Rent Rebate to provide a larger tax cut for Pennsylvania seniors.

Due to the expansion, about 175,000 more Pennsylvanians will earn the property tax or rent rebate. Additionally, a significant number of the 430,000 who originally qualified will see their rebates increase.

Elsewhere, Vermont's Property Tax Credit will help homeowners in the state pay their property taxes. Residents should be eligible based on their 2023/2024 property taxes if their property qualifies as a homestead and they meet other criteria.

The amount available depends on several factors, but the maximum credit is $5,600 for the education property tax portion and $2,400 for the municipal property tax portion.

In Alabama, married couples filing jointly received $300 extra if they had filed a state income tax return for 2021 on or before October 17, 2022.

The state spent $393 million on the tax refunds, with the checks coming from a $2.8 billion surplus in the Education Trust Fund. Each check is intended to help residents offset grocery taxes paid throughout the year.

Hellman said Americans should also focus on their personal financial planning during this period. That means building an emergency fund and reducing any debt you have will be essential.

"For any new developments or updates on potential payments, keeping an eye on official government announcements and credible news sources is recommended," Hellman said.

Uncommon Knowledge

Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

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