As part of the American Rescue Plan Act, a new payment was rumored to be paid in October of 2024. The American Rescue Plan Act was established in 2021 during the COVI-19 pandemic. The EDA allocated $3 billion in finding to provide Americans with resources to recover from the impact of COVID-19 on household income. In the wake of the pandemic, the Federal Government is continuing to make ongoing payments to residents to support with the aftermath of the pandemic.
Payments by the Federal Reserve to combat COVID-19
During the pandemic, there was widespread job and income loss for many individuals and families. Some are continuing to struggle with this income hit, particularly those who have had long term health-related complications from contracting COVID-19. Additionally, inflation continues to be high as a result of the pandemic which is impacted the cost-of-living for everyone across the nation regardless of income status.
During the pandemic, the Federal Government issued three rounds of payments to individuals, of which one you can still claim. Individuals who were earning less than $75,000 per annum and married couples filling jointly who earned less than $150,000 combined were eligible to receive $1,400 each with the implementation of the American Rescue Plan in 2021. These payments followed two previous rounds of payments which ranged between $600-$1,200.
$1,400 paid out to qualified individuals
Recently, there was a rumor which began circulating last month that the Federal Reserve would be issuing a fourth stimulus check to eligible individuals to the value of $1,400, the same as the third COVID-19 relief payment. However, citizens will be disappointed to hear that they will not be receiving an additional payment just before Thanksgiving. The Federal Reserve has not confirmed any news of a fourth COVID-19 relief payment to be issued.
The confusion about an additional COVID-19 relief payment may come from the IRS’ recent announcement that those who never received payments they were entitled to during the pandemic are still able to file to receive the payment before April 25th 2025. The rebate is sure to be a welcome to those who never received it in the middle of the pandemic.
IRS warns to watch out for fake news
The IRS is consistently being targeted with fake news through social media channels. Most recently, a viral claim on Facebook outlined that the IRS intended to pay homeowners $185,000. The claim holds absolutely no evidence to it and, unfortunately for homeowners, no such payment is set to be made anytime soon. The claim came amidst rising costs of housing concerns across the nation.
Often, misleading claims about tax policies, refunds, or scams can lead to confusion among taxpayers, causing anxiety and potentially harmful financial decisions. The IRS has taken proactive steps to counteract this issue, including providing accurate information through official channels, public awareness campaigns, and educational resources to help taxpayers discern fact from fiction. By emphasizing transparency and timely communication, the IRS aims to build trust and ensure that individuals are well-informed about their tax obligations and available resources, ultimately fostering a more informed public.
People promote fake news about federal payments for various reasons, often driven by a mix of misinformation, fear, and the desire for attention. In some cases, individuals may share unverified claims to express their frustrations with government policies. Additionally, sensationalized stories can generate clicks and engagement on social media which makes creators prioritize provocative headlines over accuracy. There are also instances where malicious actors spread disinformation deliberately to exploit public fears or manipulate opinions for personal gain.
It is important to always check verified and official channels the IRS uses to communicate with if you hear news about a new payment. This will prevent you from being both disappointed and possibly scammed.
