IRS sending 50,000 stimulus checks next month

The IRS announced that 50,000 people will be receiving stimulus checks next month.

These are essentially “catch-up” payments that are going to go out to those people whose initial payment under the Cares Act was diverted to pay their spouse’s past due child support.

These checks are expected to go out in early to mid September and they will be sent out to those individuals who filed form 8379 which is the “injured spouse allocation.”

For individuals who did not fill out a form 8379 but also saw a portion of their stimulus checks diverted to pay a spouse’s past due child support, no action is reportedly necessary.

“The IRS does not yet have a timeframe but will automatically issue the portion of the EIP that was applied to the other spouse’s debt at a later date,” the IRS stated in a news release.

While these checks will be welcomed by around 50,000 individuals, that’s only a tiny fraction of the individuals currently in need of stimulus aid right now.

Reports are now coming in that spend on essential items such as groceries is now starting to downtick which many believe is a result of the loss of additional unemployment benefits and evidence of the need for more stimulus checks.

This is in line with what some economists are predicting regarding a slow down of the economy beginning around this time.

So from an economic perspective, it is starting to look like the pandemic might be catching up to the economy very soon.

Unfortunately, negotiations for the next round of stimulus funding still appear to be stalled and it is very likely that he will not see anything done until after Labor Day.

But at least there have been some efforts by some leaders to get things done.

H/T

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