Update on Stimulus: Your Best Bet for a Stimulus Could Be Your Tax Refund

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When lawmakers issued a third stimulus check in March 2021, the US economy remained sluggish and job opportunities were scarce. Additionally, COVID-19 vaccines were not widely available, leaving some people unable to work in order to protect their health. This created an environment conducive to justifying a third stimulus round.

 

stimulus check

 

Fast forward to spring 2022, and many Americans are still in financial distress. However, consumers should not anticipate a fourth stimulus round anytime soon.

 

Economic conditions simply do not justify widespread assistance.

It is true that inflation is wreaking havoc on low-income households that were barely scraping by before living costs began to rise. Add to that sky-high gas prices in the aftermath of the Ukraine crisis, and it’s easy to see why so many households remain hopeful for a fourth stimulus check. However, that assistance is highly unlikely to arrive anytime soon, and this is because the economy is not actually in bad shape – despite appearances.

It’s natural to view rampant inflation negatively. However, it is a sign that consumers have money to spend and there is an insufficient supply of the items on which they wish to spend it these days.

Additionally, there is an adequate supply of COVID-19 vaccines at this time to ensure that anyone eligible for one can obtain one. Between this and an abundance of jobs, it’s difficult to justify a fourth stimulus round on the grounds that Americans are unable to find work – because that is simply not the case.

 

Are you capable of creating your own stimuli?

The most recent stimulus checks issued to the public were worth up to $1,400 each. However, you may be receiving another lump sum of cash that could serve as your personal stimulus payment — your tax refund.

Now that the tax filing deadline has passed, many taxpayers should begin receiving refunds in the coming weeks. And some of those refunds could be substantial.

As of April 8, the IRS had issued an average tax refund of $3,175. This is nearly double the amount of the previous stimulus check.

Of course, just because the average refund was $3,175 in early April does not mean that is the amount you will receive from the IRS. However, if you are expecting a refund, you can treat it similarly to a stimulus check. That means using it to catch up on essential bills, tackling critical items you may have put off due to a lack of funds, such as home repairs, and immediately depositing any remaining funds into your savings account.

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If economic conditions deteriorate significantly, a fourth stimulus check may be considered. However, that is not something that anyone should wish for. Therefore, if you’re having financial difficulties, your best course of action is to create your own stimulus, whether by investing your tax refund or supplementing your income with a second job.

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