Fact check: Is the IRS giving out $8,700 stimulus cheque? Here's what Americans can really claim - Hindustan Times
close_game
close_game

Fact check: Is the IRS giving out $8,700 stimulus cheque? Here's what Americans can really claim

ByArya Vaishnavi
Jun 13, 2024 12:47 AM IST

In this article we will do a fact check amid the growing rumours about an $8,700 stimulus cheque

During the COVID-19 pandemic, the US government sent out stimulus cheques to help taxpayers cope with economic instability. Three cheques were distributed under the CARES Act, Consolidated Appropriations Act (CAA), and American Rescue Plan Act (ARPA). The amount sent to American households in those three rounds totalled $814 billion, per Pandemic Oversight. However, rumours about an $8,700 stimulus cheque recently started circulating online. In this article, we will explore the credibility of the claim.

Fact check: Is there really an $8,700 stimulus cheque?(Representational Image)
Fact check: Is there really an $8,700 stimulus cheque?(Representational Image)

Is there really an $8,700 stimulus cheque?

The claims about the IRS giving out an $8,700 stimulus cheque recently started making rounds on the internet, with various unofficial sources citing a proposed expanded Child Tax Credit, per The US Sun. These claims suggested that the said proposal sought to help struggling families with monthly payments of $350 per child up to $8,700 over six months starting June 15th.

However, no official confirmation has been provided by any government agency. In the wake of such rumours, the IRS pinned a tweet advising Americans to be cautious while filing their annual return. “There are many different kinds of social media content,” the agency wrote on X, formerly Twitter, adding, “including tons of misleading tax advice that can put you at risk.”

What were the Covid-19 pandemic stimulus cheques?

In March 2020, then-US President Donald Trump signed the Coronavirus Aid, Relief, and Economic Security Act (CARES Act/Phase Three) into law. The act enabled Americans to receive a one-time, direct cash payment of $1200 plus $500 per child. Meanwhile, the Congress approved a $2.3 trillion funding package on Dec. 21, 2020. Six days later, Trump signed the CAA stimulus legislation.

The bill included $300 per week in additional jobless benefits, direct payments of $600 to individuals, $325 billion in small business loans, more than $80 billion for schools, and $69 billion for vaccine development and deployment, per Investopedia. The legislation preceded the $1.9 trillion ARPA of 2021, which was signed by President Joe Biden on March 11, 2021.

How much can Americans actually claim?

Although the rumours about an $8,700 stimulus cheque may not hold true, Americans can still claim certain payments as part of the existing Child Tax Credit Law. The IRS states that as of 2023, the tax credit is up to $2,000 per qualifying child should they fulfil the eligibility criteria. In order to qualify for the credit, a child must have a Social Security number, be under the age of 17 at the end of 2023 and be claimed as a dependent on tax returns.

SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Monday, July 15, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On