IRS continues to send direct payments under the third series of dunning checks, which was part of the American rescue plan promulgated in mid-March.
The tax administration sent the money to the vast majority of eligible Americans, but keep making weekly payments to people from one of the following two groups:
- Those who are now eligible for a larger stimulus check due to information submitted in their recent tax return, also known as ‘premium’ payments
- Anyone eligible but wpipe bank details were not on file with the IRS until they have submitted their tax returns
These two groups receive their payments because the IRS operates through a backlog of tax returns 2020, a process that will continue for the remainder of 2021. As such, even the IRS doesn’t know how many additional stimulus check payments need to be made.
How many third stimulus check payments have been made so far?
The IRS sends overdue payments in weekly batches, typically announced on Wednesday. the most recent wave payments saw over 1.8 million payments go out; 900,000 “plus-up” payments and 900,000 to those for which the IRS recently gathered information.
In total, these payments are supposed to total over $ 3.5 billion.
The latest batch brings the total number submitted in the third round of stimulus checks to almost 167 million, which has cost the federal government approximately $ 391 billion. During the three rounds of dunning checks, the numbers now stand at 884 billion dollars.
$ 884 billion in stimulus checks since March 2020.
68% overall support for cash relief, across party lines.
We are closer to a universal basic income than ever.
– Humanity Forward (@HumanityForward) May 28, 2021
Inequalities increase as the increase in stimulus control wanes
Although the IRS will continue to make payments for the rest of the year, it has now been seven weeks since the third stimulus checks began to land in Americans’ bank accounts. The Biden administration has set itself an ambitious goal of distribute 100 million in the first 10 days and exceeded this goal.
Such a rapid rollout resulted in a noticeable increase in consumer spending in the weeks immediately following the payments, but now the evidence suggests that these the positive effects start to wear off.
A monthly survey conducted by Morning Consult and Axios plots an index of inequality across the country and found that economic inequalities fell sharply in April, immediately after sending the stimulus checks. However, in May those gains were reversed and the inequality index edged up, suggesting that the boost in stimulus control is already starting to wear off.