Recently, there have been reports circulating that stimulus checks of $2,000 could be heading taxpayers’ way. The rumors come amidst the high cost-of-living circumstances many Americans are currently living with. In light of this, a $2,000 stimulus check could go a long way in providing citizens with a much-needed boost to cover their rising essential expenses each month. Here is everything we know about the $2,000 payment, as well as other payments eligible beneficiaries can expect to receive in the next few months.
Rumors regarding payments circulate
The new reports of the $2,000 stimulus payment are not the only recent reports of such a payment existing. Recently, rumors of a $5,000 stimulus check have also been circulating on the internet. This rumor originated due to comments by James Fishback, CEO of investment firm Azoria, at the beginning of the year. The comments centered around his idea of a plan for the initial $2 trillion federal savings that the Department of Government Efficiency (DOGE) planned to generate.
However, not only has this rumor since been debunked with no official confirmation from the White House that this payment would be distributed should DOGE reach its savings goal, but DOGE has since revised its savings goal to $150 billion. If this payment were true, it would in any case be reduced to $1,000 per tax-paying household, a significant drop from the initial $5,000 suggestion.
Is a $2,000 payment on its way?
While the $5,000 stimulus payment rumor has since been squashed, another seems to have taken its place. New reports are emerging that the federal government is considering releasing a ‘fourth’ stimulus payment amounting to a total of $2,000. The reason for it being described as a fourth payment is that during the COVID-19 pandemic, the federal government released three rounds of stimulus payments to help aid in providing financial relief for households amidst widespread job loss and retrenchment.
However, this $2,000 payment has not been confirmed by any official source. The last stimulus payment taxpayers could claim from the federal government was the $1,400 Recovery Rebate Credit for 2021, but specifically only for those who never claimed it at the time. The deadline to apply for this payment was April 15, just before the end of the tax season. This confusion with who gets to receive this payment may have spurred rumors of a fourth $2,000 stimulus payment.
Confirmed payments in the coming weeks
While taxpayers may be disappointed to hear that no $2,000 or $5,000 payment is coming their way, the following payments have been confirmed to be hitting the bank accounts of eligible beneficiaries in the coming weeks:
- Tax refunds for filers are currently being distributed by the Internal Revenue Service, with the average payment amounting to just under $3,000
- The regular monthly Social Security payments will continue to go ahead as per the established timetable
- A $6,500 payment for certain class members of a recent class action lawsuit settlement
In worse news in terms of payments, however, is that the Social Security Administration recently announced that it’s set to start claiming back benefits from recipients who were overpaid their monthly benefits. Originally set to claim back 100% of beneficiaries’ payments until the money was recovered, this has since been reduced to 50%. If you have been overpaid your Supplementary Security Income (SSI), the withholding rate will be 10%.
This is a new aggressive move from the Trump Administration, which has also been making sweeping budget and job cuts to crack down on unnecessary federal spending. Previously, under the Biden Administration, the recovery rate for payments that had been overpaid was set at 10% of benefits. Many have criticized the 50% recovery rate, describing it as detrimental to the budgeting of beneficiaries, who are not even the ones at fault for the overpayments
