Collecting the Economic Impact Payment - 2020 CARES Act USA

123 posts in this topic

42 minutes ago, fraufruit said:

It is a huge undertaking. There will be mistakes made.

 

I do hope they decide to target these next checks to those who really need them, though.


How is the federal government supposed to quickly and efficiently determine “who really needs it”? Means-testing is notoriously inefficient and slow, and someone earning $60K per year could be seriously hurting financially more than someone earning $36K for a variety of reasons, and expecting the federal government to be able to quickly assess pain thresholds is a pipe dream. If you don’t need it, cut it up.

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I think the current target is those who make less than $150k per year or $300k for couples. I think that is way to high. People with that kind of income could have saved for a rainy day as many of us with much less tend to do.  

 

51 minutes ago, Fritsen said:

If you don’t need it, cut it up.

 

Or give it to someone who does need it.

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15 minutes ago, fraufruit said:

I think the current target is those who make less than $150k per year or $300k for couples

It’s half that, $75K for a single person and $150K for a couple, chump change in CA or NY, Chicago, ...

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I think that is way to high. People with that kind of income could have saved for a rainy day as many of us with much less tend to do.  

I think it’ll depend on what your zip code is, your chapter in life, your job security, ...

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Or give it to someone who does need it.

That’s what many of us, including you and I, have done.  What has upset me is that I know of people, such as a 22 year old single mother, who applied for the $1,200 and it never came.  Fortunately the $600 came.  

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6 minutes ago, BethAnnBitt said:

It’s half that, $75K for a single person and $150K for a couple, chump change in CA or NY, Chicago, ...

 

Thanks for setting me straight.

 

That's actually a decent income in most of the U.S. A good bit more than what my son and his wife make and they're doing fine.

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Just now, fraufruit said:

That's actually a decent income in most of the U.S. A good bit more than what my son and his wife make and they're doing fine.

I don’t quite see it that way, but I definitely hear your point.  One option would have been to target the payments only at those who are low income, which differs radically by zip code, but so many people are suffering and needed it now.  I think it would have been impossible to get the money out quickly with too much means testing.  In the end I’d rather too many got it, rather than too few.  BTW  They are looking at lowering the thresholds this time for the $1,400.

https://www.nbcnews.com/politics/congress/senate-democrats-split-who-should-receive-1-400-checks-n1256788

 

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The entire hospitality industry has been decimated, especially here in California.

 

Maybe target those workers? 

 

Still bewildering how the stock market is flying high and one entire swath of society is jobless scraping to get by. 

 

Oh oh wait this America. 

 

Rich get richer, poor get screwed.

 

“It’s deja  vu, all over again“

 

-Yogi Berra

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10 hours ago, dave415. said:

Still bewildering how the stock market is flying high

 

Not really surprising considering the existing (i.e. pre-pandemic) disparity in household wealth coupled with central bank floods of money which mostly went into driving down bond market yields, the inability of those with higher wealth to spend it and then the cherry on top: the EIP, a sizeable chunk of which went directly into the stock and real estate markets for lack of anything better to do with it:

 

https://www.forbes.com/sites/zackfriedman/2020/10/19/how-americans-spent-1200-stimulus-checks/?sh=1f975a3a680f

 

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first stimulus 3400 + second stimulus 2400 + third stimulus 5600 (if rules dont change) = 11k ! At this rate they will be paying for my new roof on the house by the end of this year (27k). I guarantee you there will be a fourth stimulus check.

 

 

 

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If you reside in Germany, would it (Economic Impact Payment - 2020 CARES Act USA) be taxed by German government?

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2 hours ago, Nixon said:

If you reside in Germany, would it (Economic Impact Payment - 2020 CARES Act USA) be taxed by German government?

 

For the reasons set forth in my post on this thread of 7 Oct, probably not.

 

However, you would be doing yourself - and the Finanzamt - a big favor if you were to follow @fraufruit 's advice and "don't ask".

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Looks like Uncle Sam will be being buying me a new roof:

 

https://www.zerohedge.com/markets/biggest-winners-bidens-stimulus-middle-class-family-4-will-qualify-12800-over-next-15

 

Biggest Winners From Biden's Stimulus: Middle-Class Family Of 4 Will Qualify For $12,800 Over Next 15 Months

BY TYLER DURDEN
THURSDAY, FEB 11, 2021 - 16:50

While markets wait to see what the final size and scope of the proposed $1.9 trillion Biden stimulus will be, what we know currently about the key support components is the following:

  • "Economic Impact Payments" of $1,400 per person plus an additional $1,400 per dependent phasing out starting at $75,000 for single, $112,500 for head of households and $150,000 for married (fully phased out at $100,000 for single,$150,000 for head of households and $200,000 for married)
  • Temporary enhanced Child Tax Credit: Fully refundable $3600 per child age under 6 and $3000 per child age 6-17 with gradual phase out of $50 for each $1000 over the threshold of $75,000 for single, $112,500 for head of households, and $150,000 for married. Credits are paid out monthly in even increments starting July 2021 through June 2022 (e.g. $300 for age under 6, or $250 for age 6-17 per month per child).

What does that mean in practical terms?

 

As BofA economist Joseph Song explains, the big winners of the proposal will be be low to middle-income households with young children. As shown by the orange line below, a family of 4 making less than $150,000 a year could qualify for $12,800 in federal income support over the next 15 months.

 

 

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Meanwhile-

 

An Indianapolis man suspected of killing three adults and a child told police he fatally shot the four victims after he and his girlfriend argued because he wanted a share of her federal COVID-19 relief money, according to a court document and one of the girlfriend's relatives.

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money makes people crazy

 

anyway, I just got the third stimulus check today! Thank you Federal Reserve!

 

yes it is confirmed that the US kindergeld will happen. There's a calculator here: https://www.cnet.com/personal-finance/child-tax-credit-2021-rules-are-a-mess-heres-how-much-money-youll-get/ , in my case it will be 6k for two kids,  3k in 2021 and then another 3k in 2022. 

 

Meanwhile.. the M1 money supply...

 

 

 

 

 

M1 money supply.png

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Looks like my luck ran out regarding convenience of depositing the check

Bank of America wouldn't let me deposit the third check via mobile app (last two times it worked!).

I tried again and their automated message says I have to deposit it in-person! (ha!)

I will contact them and see if they let me try it again... otherwise I will have to mail it to relatives to deposit for me. 

 

 

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I kept checking the irs site and the other day it said that my check will be mailed on the 16th so today! I will, in turn, mail it to my US account.

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Congrats Fraufruit!

Good news, turns out my pictures of the check were too blurry, so the Bank told me to try again. I managed now to deposit the check with my mobile app. The convenience of mobile deposit is really handy for the expat with a us bank account situation. But I wish I could just get direct deposit working. Since I don't owe any taxes, Turbotax doesn't ask/report my US bank account to the IRS in my tax filing. I would rather not deal with worrying if the check makes it through the mail.

 

Now I am checking the exchange rates to see the best time to transfer. Got bills to pay after all this renovation!

 

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I have no worries about my check making it through the mail. It always works. I never bank on my phone. That would worry me more. 

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