May 18, 2022 | Law Updates

4th Stimulus Check Update

Insights | by Sharon Winsmith

There has been a lot of buzz over the past few months about whether there will be a 4th stimulus check. The chances that you can expect another check from the government largely depend on where you live.

While the federal government has been slow to approve a 4th stimulus check, there has been some action by the states. That means that even though you may not get another check from the IRS, you may still get a 4th stimulus check from your state government. In some cases, local cities are even offering a stimulus check to residents.

Read more below to find out whether you could be eligible for a 4th stimulus check.

Previous Stimulus Checks

In response to the COVID 19 pandemic, Congress approved three previous rounds of stimulus payments. That means eligible individuals should have received 3 separate checks from the IRS.

 

1st Stimulus Check

The 1st stimulus checks were approved by President Trump in 2020 in the CARES Act. Eligible individuals were able to receive a 1st stimulus check of up to $1,200. You could also receive up to $500 for each eligible dependents under the age of 17.

Direct deposits of the 1st stimulus payments were made in April 2020. Paper checks were mailed in May and June 2020.

 

2nd Stimulus Check

A 2nd stimulus payment was authorized at the end of 2020. This round provided a check of up to $600 per person. Parents could also receive an additional $600 stimulus check for each dependent child under the age of 16.

Direct deposits of the 2nd stimulus payment were made in December 2020 and January 2021. Paper checks were mailed in January 2021.

 

3rd Stimulus Check

A 3rd round of stimulus checks was authorized by President Biden in March 2021 under the American Rescue Plan. The 3rd stimulus payments provide eligible individuals a check of up to $1,400. Parents could also receive an extra $1,400 check for dependent children regardless of age.

Direct deposits of the 3rd stimulus payments were made in March 2021. Paper checks were mailed in March and April 2021.

 

Who is Eligible for a 4th Stimulus Check?

Whether you are eligible for a 4th stimulus check depends on your adjusted gross income as reported on your tax return. This means that the IRS will look at what you reported on your previous tax return and determine your eligibility. The determination is made based on your most recent return filed with the IRS.

Anyone with adjusted gross income of less than $75,000 (single filers) or $150,000 (for married filing jointly filers) were eligible to receive the full amount of the stimulus.

If your adjusted gross income was above $75,000 and $99,000 (for single filers) or $150,000 to $198,000 (for married filing jointly filers), the amount of stimulus you receive will be reduced.

If your adjusted gross income was equal to or higher than $99,000 (for single filers) or $198,000 (for married filing jointly filers), you were not eligible to receive any stimulus payments.

What if My Financial Situation Changed Since I Filed My Last Tax Return?

My clients commonly ask me what it means if their financial situation changed since they filed their last tax return. You might have made a lot of money in one year and then your income dropped drastically in the next year. This is not an uncommon fact pattern, particularly for people who were not able to work or lost their jobs because of the COVID 19 pandemic.

If your situation has changed and you are eligible for one or more of the stimulus payments, you should claim what is called the “Recovery Rebate Credit” on your tax return. This credit can be claimed on your 2020 or 2021 tax return.

Make sure you let your CPA or tax preparer know that you are eligible for the credit and did not previously receive any checks from the IRS. The credit is claimed on Line 30 of your Form 1040: U.S. Individual Income Tax Return.

You are only able to receive 1 payment for each of the 3 stimulus checks that were sent out. That means if you already received your 3 stimulus checks, you are not allowed to also claim the Recovery Rebate Credit on your tax return.

 

How Do I Get My 4th Stimulus Check?

If you have been paying your taxes by direct withdrawal from your bank account, your stimulus checks should have been deposited directly into the bank account the IRS has on file. That means you should see a deposit in your bank account directly from the IRS. 

The stimulus payments should show up as “IRS TREAS 310.” It should have a code of “TAXEIP1” for the 1st stimulus check, “TAXEIP2” for the 2nd stimulus check, and “TAXEIP3” for the 3rd stimulus check. 

If the IRS did not have a bank account on file, you should have received a paper check in the mail. In some cases, the stimulus payments were sent out as prepaid debit cards. 

What If I am Eligible for a 4th Stimulus Check and Didn’t Receive My Payment Yet?

You can check the records for which of the previous stimulus payments were sent to you on the IRS’s website here.

If you haven’t received any of the prior stimulus payments and think you should be eligible, you should get in touch with the IRS as soon as possible. The IRS has a website that provides instructions on what to do if you are missing a payment.

One option is to have your CPA or tax preparer claim a Recovery Rebate Credit on your 2020 or 2021 tax return. You could also call the IRS as 800-919-9835 and speak to a representative about the situation.

 

State Stimulus Payments

The federal government has not approved a 4th stimulus check yet. However, some states have acted by providing their residents with forms of stimulus payments that are paid by the state governments. These stimulus payments take many different forms.

See below for an overview for states that are providing some relief to their residents through some version of a 4th stimulus check. Each state has its own rules for who is eligible and how the payment will be made.

 

1. Alabama

No additional stimulus payments

2. Alaska

No additional stimulus payments

3. Arizona

Arizona is providing its residents with a payment for getting back to work. The stimulus is called a “Return-to-Work Bonus.” The stimulus is for individuals who are returning to work and includes payments for returning to work, education incentives, and child care assistance in some cases. The total amount of payment available is $2,000. 

The Return-to-Work Bonus was available for Arizona residents who were previously receiving unemployment benefits but returned to work before September 6, 2021 and held their job for at least 8 weeks. The bonus is not available for anyone making over $77,000 a year. 

To receive the bonus, eligible individuals were required to submit an application. Arizona is not accepting more applications for the Return-to-Work Bonus. That means, unless they reopen the program, you are not eligible to receive a payment unless you applied before January 21, 2022. 

Read more here about Arizona’s Back to Work Program.

4. Arkansas

No additional stimulus payments

5. California

Similar to the federal government, California has provided its residents with several rounds of stimulus checks from the state. 

The 1st California stimulus payment gave residents $600 per person if your income was less than $75,000. Payments were computed based on 2020 tax returns and were paid out in 2021. 

The 2nd California stimulus payment gave residents between $500 and $1,100 if your income was below $75,000. The payments were based on 2020 tax returns and were paid out at the end of 2021 and the beginning of 2022. 

Los Angeles is also launching a pilot basic income program for certain residents who qualify and are selected. The plan will provide up to 3,200 people with $1,000 a month. The participants will be selected at random through a lottery system. 

Individuals wanting to apply were required to submit an application to be included in the pool of candidates for selection in the lottery system. Applications are no longer being accepted for the pilot program. 

6. Colorado

In 2020, Colorado provided its residents with a stimulus payment of $375 per eligible person. Eligible persons include Colorado residents who were receiving unemployment benefits between March 15, 2020 and October 24, 2020. 

Payments will be made directly into your bank account or through your ReliaCard. Payments were made in December 2020 and the beginning of 2021. 

Read more about the Colorado stimulus payments here.

7. Connecticut

No additional stimulus payments

8. Delaware

No additional stimulus payments

9. Florida

No additional stimulus payments

10. Georgia

Georgia is providing its residents with tax rebate payments of up to $250 per eligible person. In some cases, those filing as head of household status could receive a rebate of up to $375.

The rebate is available for all residents of Georgia who filed individual income tax returns for both 2020 and 2021. 

The rebates will be paid when the 2021 tax return is filed. However, if you already filed your 2021 tax return, you should receive a separate refund from the Georgia Department of Revenue. 

Read more about the Georgia tax rebate here.

11. Hawaii

The Hawaii state legislature has approved tax rebates for residents. Individuals earning less than $100,00 a year may receive a rebate of $300. A $300 rebate may also be available for dependent children. Individuals earning more than $100,000 may receive a rebate of $100. 

The proposal is still waiting on approval from the governor before it can be finalized.

12. Idaho

Idaho is providing its residents with tax rebate payments. The amount of the tax rebate is equal to the greater of the following: 

  • $75 per person and dependent; or 
  • 12% of the Idaho state tax amount reported on your return. 

The rebate is available for residents of Idaho who filed individual income tax returns for both 2020 and 2021. 

Eligible residents will receive their rebate payment after they file their 2021 tax return beginning in March 2022. The rebates will be paid via direct deposit or paper check. 

Read more about the Idaho tax rebate here.

13. Illinois

Chicago is rolling out a basic income pilot program which will provide payments of $500 to certain qualifying individuals. The benefits will only be paid out to 5,000 families and a lottery system will be used to determine who will receive benefits under the plan. 

The following residents of Chicago will be eligible to apply to receive assistance under the lottery program: 

  • 18 years of age or older; 
  • Experienced economic hardship during the COVID 19 pandemic; and
  • Household income is at or below 250% of the “Federal Poverty Level” (generally around $40,000 for 1 person household or $45,000 for a 2 person household). 

You were required to apply to be selected to receive benefits under the plan through this website. Qualifying individuals were required to apply before May 13, 2022. They are no longer accepting applications.

Read more about Chicago’s new basic income pilot program here

Chicago has also set up a Domestic Workers Relief Fund to provide certain domestic workers in Chicago with $500 per person. 

Illinois has not provided any stimulus payments at the state level.

14. Indiana

Indiana is providing its residents with tax rebate payments of $125 per person. 

Indiana residents who filed a 2020 Indiana state tax return are eligible to receive the rebate. The rebate will be paid via direct deposit or paper check starting in May 2022. 

Read more about the Indiana rebates here.

15. Iowa

No additional stimulus payments

16. Kansas

There is currently a proposal to provide a $250 tax rebate to residents of Kansas who filed a tax return in 2020 and 2021. 

The plan has not yet been finalized.

17. Kentucky

There is currently a proposal to provide a rebate of $500 per person or $1,000 per household to residents of Kentucky. 

The plan has not yet been finalized.

18. Louisiana

No additional stimulus payments

19. Maine

Maine is providing eligible residents with relief checks of $850. Eligible persons include residents of Main with adjusted gross income of less than $100,000 (single filers) or $200,000 (married filing jointly filers). 

Payments will be sent out as paper checks starting in June 2022.  

Read more about the Maine stimulus checks here.

20. Maryland

Maryland provided certain residents with a stimulus check of up to $300 for individuals of $500 for couples.  

Maryland residents who claimed the Earned Income Tax Credit on their 2019 state tax return were eligible to receive the stimulus check. This generally includes individuals who made less than the following: 

  • $15,820 (single filers) or $21,710 (married filing jointly filers) with no qualifying children
  • $41,756 (single filers) or $47,646 (married filing jointly filers) with 1 qualifying child
  • $47,440 (single files) or $53,330 (married filing jointly filers) with 2 qualifying children 
  • $50,954 (single files) or $56,844 (married filing jointly filers) with 3 or more qualifying children. 

Payments were made via direct deposit or check.  

Read more about the Maryland stimulus payments here.

21. Massachusetts

No additional stimulus payments

22. Michigan

No additional stimulus payments

23. Minnesota

No additional stimulus payments

24. Mississippi

No additional stimulus payments

25. Missouri

No additional stimulus payments

26. Montana

No additional stimulus payments

27. Nebraska

No additional stimulus payments

28. Nevada

No additional stimulus payments

29. New Hampshire

No additional stimulus payments

30. New Jersey

New Jersey is providing its residents with tax rebates of up to $500. The rebate is called the Middle Class Tax Rebate and is available to New Jersey residents who satisfy the following requirements: 

  • Filed a 2020 New Jersey state return;
  • Have at least 1 dependent child claimed on the return;
  • Have a state tax balance of at least $1 or more; and 
  • Have New Jersey adjusted gross equal to or less than $75,000 (single filers) or $150,000 (married filing jointly filers). 

The rebate will be available after individuals file their 2021 state returns and will be paid with paper checks. 

Read more about the New Jersey tax rebates here

31. New Mexico

New Mexico is providing residents with various tax rebates. A rebate of $250 (single files) or $500 (married filing jointly filers) is available for residents with income under $75,000 (single filers) or $150,000 (married filing jointly filers). 

An additional tax rebate of $500 (single filers) or $1,000 (married filing jointly filers) is available to all individuals filing a 2021 New Mexico state return. Those who do not file a New Mexico state tax return may file an application for the relief payments through this website

The tax rebates will be sent automatically to residents who have filed a 2021 state return and will be paid via direct deposit or check. The rebate should be received shortly after the 2021 state return is processed. 

Read more about the New Mexico stimulus payments here

32. New York

New York set up an Excluded Workers Fund to provide financial assistance to New York residents who were not able to work during the COVID 19 pandemic. Payments can range between $3,200 and $15,600. 

Financial benefits are available for residents that satisfy the following: 

  • The individual was a resident of New York state as of March 27, 2020 and continued to be a resident of New York; 
  • Did not receive unemployment insurance or any other COVID 19 relief benefits from the state or federal government (other than the federal stimulus payments); 
  • Had income of less than $26,208 from May 2020 to April 2021; and 
  • Lost at least 50% of weekly wages at any point between February 23, 2020 and April 1, 2021 because of the COVID 19 pandemic. 

Individuals were required to submit applications to receive any financial assistance. New York is no longer accepting applications for financial assistance through the fund. 

Payments were made through prepaid Visa cards and are typically received 6-8 weeks after the application is reviewed. 

Read more about the New York Excluded Workers Fund here.

33. North Carolina

No additional stimulus payments

34. North Dakota

No additional stimulus payments

35. Ohio

No additional stimulus payments

36. Oklahoma

No additional stimulus payments

37. Oregon

No additional stimulus payments

38. Pennsylvania

Pittsburgh has launched a basic income pilot program for certain residents called the Assured Cash Experiment. The program will provide 200 individuals with up to $500 a month for 2 years. Participants will be selected at random through a lottery system; however, at least 100 of the participants selected will be black women. 

The plan was recently approved and we are awaiting further details on how eligible individuals can apply for the lottery. Read more about the Assured Cash Experiment here

Pennsylvania has not provided any stimulus payments at the state level.

39. Rhode Island

No additional stimulus payments

40. South Carolina

No additional stimulus payments

41. South Dakota

No additional stimulus payments

42. Tennessee

No additional stimulus payments

43. Texas

No additional stimulus payments

44. Utah

No additional stimulus payments

45. Vermont

Through the Hazard Pay Grant Program, Vermont is providing frontline employees with stimulus payments of $1,200-$2,000. 

No other stimulus payments have been provided by the state. 

Read more about the benefits available for frontline employees in Vermont here.

46. Virginia

No additional stimulus payments

47. Washington

Seattle created a relief fund that will give a stimulus payment of $1,000 to $3,000 to residents with income of less than 50% of Seattle’s median income (approximately $40,000 for individuals). 

Eligible residents were required to apply online for benefits. The application period has closed. 

Read more about the Seattle Relief Fund here

Washington has not provided any stimulus payments at the state level.

48. West Virginia

No additional stimulus payments

49. Wisconsin

No additional stimulus payments

50. Wyoming

No additional stimulus payments

 

Will There be an IRS 4th Stimulus Check?

It looks unlikely that there will be another stimulus payment from the federal government at this point. While some politicians in Congress are still pushing for more relief, most are of the belief that we probably won’t see anymore COVID stimulus checks. At least not unless there is another wave that causes more lockdowns or closures.

Although the federal government may be unlikely to act, some states are continuing to provide additional relief to their residents through stimulus payments and tax rebates. There are also many states looking at providing gas stimulus checks to combat the rising oil prices. Make sure you stay updated on any developments that might mean more money for you!