Private payrolls growth surged at a faster rate than expected in June, according to ADP, but even with that news, the Internal Revenue Service and the Treasury Department are still disbursing millions of new $1,400 coronavirus stimulus checks to eligible Americans under President Joe Biden’s American Rescue Plan.
The gain of nearly seven hundred thousand in private payrolls came in much higher than the five hundred fifty thousand estimate from Dow Jones. Leisure and hospitality, which includes restaurants, bars, and hotels, enjoyed the biggest hiring surge with roughly three hundred thirty thousand.
Education and health services, trade, transportation, and utilities also saw robust gains in hiring.
As the U.S. economy continues to gain momentum amid the ongoing pandemic, the IRS is busy at work issuing new stimulus payments. So far this year, the agency has sent out nearly one hundred seventy million checks, which represent a value of $395 billion. Approximately 10 percent of checks earmarked for the third round of stimulus will be heading out in the coming weeks.
Earlier this month, the IRS announced that well over two million more stimulus payments were issued. And many of those checks went out to Americans who recently filed taxes. In an effort to expedite the other payments, the IRS is urging Americans to file an extension and complete their federal tax returns if they haven’t already.
The agency notes that “although payments are automatic for most people, the IRS continues to urge people who don’t normally file a tax return and haven’t received Economic Impact Payments to file a 2020 tax return to get all the benefits they’re entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit.”
Those much-anticipated expanded child tax credits will start heading into eligible parents’ bank accounts starting on July 15.
The so-called “plus-up” or supplemental checks, of which a million were included in the latest tranche, are continuing to be issued as well. This money is for individuals “who earlier in March received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns.”
In all, more than eight million such checks have been sent out to eligible Americans so far this year.
Furthermore, the IRS is still busy at work disbursing refunds from 2020 unemployment benefits. The IRS did issue nearly three million of these refunds earlier this month, but it appears that many taxpayers are still waiting for the next batch of payments.
These refunds are from the waiving of federal tax on up to $10,200 of unemployment benefits, or $20,400 for married couples filing jointly.
Ethen Kim Lieser is a Minneapolis-based Science and Tech Editor who has held posts at Google, The Korea Herald, Lincoln Journal Star, AsianWeek, and Arirang TV. Follow or contact him on LinkedIn.