Recent reports suggest that $2,000 stimulus payments may be on their way to taxpayers. The rumors come amid the high cost of living that many Americans are already experiencing. In light of this, a $2,000 stimulus package might help citizens cover their rising monthly critical expenses. Here’s all we know about the $2,000 payment and the other payments qualified beneficiaries might expect in the coming months.
Rumors about payments circulate
The fresh claims of the $2,000 stimulus payout are not the only recent reports of its existence. Recently, reports about a $5,000 stimulus payment have circulated on the internet. This myth began with comments made by James Fishback, CEO of investment firm Azoria, at the beginning of the year. The comments focussed on his proposal for the initial $2 trillion federal savings that the Department of Government Efficiency (DOGE) intended to generate.
However, not only has this claim been refuted, with no official confirmation from the White House that this money will be distributed if DOGE meets its savings goal, but DOGE has also raised its savings goal to $150 billion. If this payment is accurate, it will be cut to $1,000 per tax-paying household, a huge decrease from the original $5,000 suggestion.
Is there a $2,000 payment on the way?
While the $5,000 stimulus payment story has already been debunked, another appears to have taken its place. According to new rumors, the federal government is considering making a ‘fourth’ stimulus payment in the amount of $2,000. The reason it is referred to as a fourth payment is that during the COVID-19 pandemic, the federal government issued three rounds of stimulus payments to assist in providing financial relief to households facing severe job loss and retrenchments.
However, no official source has validated the $2,000 payment. The $1,400 Recovery Rebate Credit for 2021 was the last stimulus payment people could claim from the federal government, but only if they had not claimed it previously. The deadline to apply for this payout was April 15, shortly before the end of the tax season. The misunderstanding over who will receive this payment may have fueled speculations of a fourth $2,000 stimulus payout.
Confirmed payments in the next weeks
While taxpayers may be upset to learn that they will not get a $2,000 or $5,000 payment, the following payments have been confirmed to reach qualified beneficiaries’ bank accounts in the next weeks:
The Internal Revenue Service is presently distributing tax refunds to filers, with an average payment of little under $3,000
The normal monthly Social Security payments will continue to be made as per the set timeline.
A $6,500 payment to some class members of a recent class action lawsuit settlement.
Worse news in terms of payments: the Social Security Administration recently announced that it will begin demanding back money from claimants who were overpaid for their monthly benefits. Originally intended to demand back 100% of recipients’ payments until the funds were recovered, this has recently been cut to 50%. If you have received an overpayment of Supplementary Security Income (SSI), the withholding rate will be 10%.
This is a new aggressive approach by the Trump administration, which has also implemented significant budget and personnel cuts to reduce wasteful federal spending. Previously, the Biden Administration set the recovery rate for overpayments at 10% of benefits. Many have questioned the 50% recovery rate, describing it as detrimental to the budgeting of recipients, who are not even responsible for the overpayments.