Americans who are struggling financially will receive extra cash this month from the 4th stimulus check.
4th Stimulus Check 2022
Eligible Americans who are in desperate need of cash are now able to start applying the monthly stimulus check payments worth $660 last week. This applies to families who reside in Shreveport, Louisiana with 110 selected eligible will get these payments for 12 months. According to a published article in The US Sun.
Specifically, Shreveport is the latest city to implement the universal basic income (UBI) program, which provides payments that target those in need in a recurring fashion. To qualify for the stimulus payment, a resident in the city should be a single parent, with an income 120% less than the federal poverty line. It comes as Americans can claim approximately $15,775 from the IRS this month as part of their tax returns.
Is the Stimulus Checks Taxable
President Joe Biden is the one who authorized the third round of stimulus checks as part of his American Rescue Plan in March 2021. Furthermore, stimulus checks are not taxable, but they still need to be reported on 2021 tax returns.
If you are unable to receive the third payment or the check was less than what it should’ve been based on your income, you could receive the amount you’re owed when you file your 2021 taxes. However, if you received more than you should have, due to a change in income or other circumstances, you will not be required to pay back the government.
Moreover, it is also significant to know that the stimulus checks cannot be taken by the IRS to pay federal debts, child support, federal taxes, or state income taxes. In addition, it was stated on the IRS website that you are not required to report the third stimulus check on your 2021 tax return. However, the information may be useful to determine whether you’re eligible to receive the 2021 Recovery Rebate Credit on your tax return.