Stimulus Payments 2025: What Americans Need to Know
Economic impact payments or stimulus payments are checks or direct deposits issued by the government to stimulate spending by consumers and stabilize the economy in a downturn. The U.S. government has utilized them during financial crises; the most recent one was during the COVID-19 pandemic.
Also Read More About: Stimulus Payments 2025: What You Need to Know Now
The discussion of the Stimulus Payments 2025 accumulated its dynamic because of several long-term economic processes: Persistent inflation affecting basic goods and services
affecting basic goods and services Job market fluctuations , especially in the retail and tech sectors
, especially in the retail and tech sectors Federal Reserve interest rate changes are slowing down borrowing and spending
are slowing down borrowing and spending A potential recession warning from economists and financial analysts
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Considering these, most Americans are anticipating new stimulus bills to lessen the burden.
Until this time, no federal legislation concerning the 2025 stimulus package has been settled on. Nevertheless, a number of proposals have been pushed in Congress, particularly before the results of the election in 2024. Depending on the political leadership and economic situation, there is still a probability of a stimulus check in 2025.
Also Read More About: Stimulus Payments 2025: What You Need to Know Now Federal Stimulus : New stimulus deals can be given the nod when the economy nose-dives or when unemployment levels rise.
: New stimulus deals can be given the nod when the economy nose-dives or when unemployment levels rise. State-Level Stimulus : Other states are also repeating their stimulus-style rebates to their citizens with budgetary surpluses.
: Other states are also repeating their stimulus-style rebates to their citizens with budgetary surpluses. Targeted Relief: Certain categories of people may enjoy targeted relief, including low-income families, veterans, and Social Security recipients.
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In 2025, when stimulus checks may be reintroduced, the eligibility may be similar to the previous rounds but may have new requirements. Presumably, those are:
Those with an income below 75,000 dollars and the married couples filing jointly with an income of less than 150,000 dollars might get the full benefits.
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The eligibility may be based on your 2023 or 2024 federal tax statement, mainly adjusted gross income (AGI).
Also Read More About: Stimulus Payments 2025: What You Need to Know Now
Others automatically qualified include retirees or disabled people who draw their benefits under SSI, SSDI, or VA compensation.
Families who have dependents may get Child Tax Credits or other funds.
Proactiveness can help you not miss any relief payment:
You need to make sure that you file your tax return early, even when you do not owe taxes. To see whether you will qualify, the IRS utilizes your return.
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Documents with the proper bank information can help you pay faster by keeping the correct data with the IRS.
Check your state Department of Revenue website to see whether there are any refunds, credits, or stimulus programs.
Some states have gone ahead to do their thing because the federal government is still torn. The next states have announced or prolonged relief programs in 2025: California : extension of Tax Refund to the middle class
: extension of Tax Refund to the middle class New Mexico : Rebates in energy assistance
: Rebates in energy assistance Colorado : Refunds to taxpayers on the basis of earning levels Income In Colorado, taxpayers are given tax refunds depending on their wage categories.
: Refunds to taxpayers on the basis of earning levels Income In Colorado, taxpayers are given tax refunds depending on their wage categories. New York: Relief on property tax to low-income homeowners
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These programs are not connected with federal stimulus checks, but still have the same goal, that is, to assist struggling residents. Is there a fourth federal stimulus check in 2025?
As of now, there is no confirmed fourth federal stimulus check. Discussions are ongoing and depend on the economic environment. How will I know if I qualify for a 2025 stimulus payment?
Eligibility would likely be based on income, tax filings, and specific criteria. Watch for official IRS announcements. What if I didn't receive the previous stimulus payments?
You can claim missed payments using the IRS Recovery Rebate Credit on your tax return. Are stimulus payments taxable?
No, stimulus payments are not considered taxable income and will not affect your refund.
Although no one knows what Stimulus Payments 2025 will engender, Americans are encouraged to be financially competent and alert. Financial relief could still be financial relief this year, whether at the federal level or at the state-based program level. To prevent losing, maintain your records to date, pay taxes early enough, and watch credible government outlets to get news and updates.
Also Read More About: Stimulus Payments 2025: What You Need to Know Now
Stay connected for updates on Stimulus Payments 2025 and take control of your financial future.
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Hamilton Spectator
17 minutes ago
- Hamilton Spectator
What if killing Canada's digital services tax is just the beginning for Donald Trump?
OTTAWA—Call it a prudent climbdown, a show of weakness, or an unavoidable concession. There are several ways to look at Prime Minister Mark Carney's 11th-hour decision to cancel the federal government's Digital Services Tax last weekend. But what if it's also a tangible example of exactly what Carney warned would happen? The Liberal leader won a minority government on April 28 with a pitch that no one was better placed than himself to protect Canada from Donald Trump. The U.S. president has mused about using 'economic force' to annex Canada. As if taunting or teasing this country, he questions why it exists, and keeps floating the prospect of it becoming the '51st state' of the U.S. Two days before the election, Carney spelled out how he understood all of this. 'The U.S. is trying to put economic pressure on us to gain major concessions, to the extreme of a level of integration of our countries that would impinge our sovereignty,' Carney said that day in King City, north of Toronto. Carney, in his final campaign conference, ruled out any prospect the U.S. would use military Flash forward to last week. There was Trump, posting on social media that Canada's incoming Digital Services Tax — a policy that would force American tech giants and other firms, including Canadian ones, to pay up — was nothing short of a 'blatant attack' on the United States. Trump declared he had cut off all negotiations to resolve the trade war that started earlier this year with his wave of tariffs on Canadian goods. In other words, Canada's most important commercial and military partner, the destination for 76 per cent of all exports last year , was willing to ditch talks and dictate terms that could jeopardize thousands of jobs and hundreds of billions of dollars in economic activity. All over a domestic policy the Americans didn't like. Barely 48 hours later, shortly before midnight on a Sunday, the government announced the tax was dead. Not only would Canada not implement the policy as planned, it would repeal the 2024 law that created it. Is this Trump using economic pressure to force Canada's hand? 'It is exactly that,' said Lawrence Herman, a veteran trade lawyer and special counsel with the firm, Cassidy Levy Kent. 'It's an example of, on a particular issue, how much pressure can be brought to bear to force Canada to abandon not only a policy, but a law that has been in force for 18 months.' In Herman's view, the decision looks like a 'significant retreat' by the government, which shows 'how dependent we are on a reasonable relationship' with Canada's largest trading partner. Other policies that Trump has complained about, such as the supply management system for dairy and poultry, could be next, he said. Pete Hoekstra, the U.S. ambassador to Canada, told the CBC this week that he has a 'strong belief' Canada could water down that system by changing a law designed to protect it if that becomes part of a new trade deal. 'It's not a particularly good start to this so-called new economic and security relationship,' Herman said. He was referring to Carney's stated goal of talks that are now continuing under an agreement struck at the Group of 7 summit in the Alberta Rockies last month to strive for a deal to redefine the relationship by July 21. Others have been harsher in their judgment. Lloyd Axworthy, a former Liberal foreign affairs minister, posted online that Carney was acquiescing to Trump in a way that contradicts his 'elbows up' mantra on the campaign trail. 'Forget any dreams of a more sovereign, self-directed Canada. We're doubling down on the corporate cosiness and U.S. dependency that's defined our last half-century,' he wrote on Substack. Axworthy did not respond to an interview request Thursday. For Jean Charest, a former Quebec premier who sits on the government's Canada-U.S. advisory council, the situation illustrates the 'chaos' of dealing with Trump, whose administration is grappling with trade talks and tariffs threats against most countries on the planet. This meant that Carney's government was operating 'in a world of very bad choices,' Charest said. Deciding to scrap the Digital Services Tax, in that context, was 'certainly a legitimate choice,' he said. 'We are not in an ordinary world of negotiations,' Charest added. 'It would be nice to think, 'You give, I give ... we compromise.' It doesn't work that way with Donald Trump, and we're making our way through this by trying to protect essentially what's the most important for us in the short term, and that's a negotiation that has some legs.' Charest noted that there was opposition inside Canada to the Digital Services Tax, which would have applied back to 2022 with a three per cent tax on Canadian revenues from digital services companies with more than $1.1 billion in global earnings and $20 million inside Canada. The U.S. also pushed back against the policy when Joe Biden was in power. David Pierce, vice-president of government relations with the Canadian Chamber of Commerce, said his business lobby group felt the Digital Services Tax should be paused. He also said it would have been wrong to proceed with it after the U.S. dropped a controversial provision from Trump's major budget bill last week: the so-called 'revenge tax' that would have hit the U.S. assets of foreign businesses and individuals. That decision came as the G7 agreed to exempt American firms from a co-ordinated effort to ensure corporations pay a minimum tax, which was 'absolutely a win' for the U.S. Even so, Pierce said Canada likely had no choice but to drop the policy, given Trump's exploitation of Canada's 'weakness' — its major economic reliance on trade with the U.S. 'We just hope that this now paves the way for a good renewed deal,' said Pierce. The ultimate goal of the federal government in that deal, at least publicly, has been to return to the terms of the Canada-United States-Mexico Agreement (CUSMA), which Trump signed in 2018 during his first term, after disparaging North American free trade as unfair to his country. That would mean lifting the rounds of tariffs Trump has imposed since the winter, with import duties tied to concerns about drugs and migration over the border, and others that Trump slapped on Canadian autos, steel and aluminum in a bid to promote those sectors in the U.S. Canada has responded with countertariffs on its own that the government says hit more than $80 billion worth of American imports to Canada. Canada's lead trade negotiator with the Trump administration, Ambassador Kirsten Hillman, was not available for an interview this week, the embassy in Washington told the Star. Charest, however, said he believes it is possible that Canada could accept some level of tariffs in a July 21 deal, so long as they have no material effect. Such 'zero-effect' tariffs could only kick in at levels of trade that Canada doesn't or likely won't achieve, for example. Yet there's a question of how much any deal can be relied upon, so long as Trump is in the White House, unilaterally imposing tariffs that Canada views as 'illegal' violations of the 2018 trade deal. 'Trump is arguing about supply management and the (Digital Services Tax), but it's the U.S. that is in flagrant breach of its trade obligations. It's abandoned the CUSMA, virtually behaving as if it did not exist and the U.S. signature has no meaning,' Herman said. 'So we are in a world where rules and the rules-based system, and the stability that that treaty was supposed to provide, have gone by the board.' That means, at least for now, the Carney government is operating in a world where Canada's foremost ally, the colossus to the south, will use economic force to get what it wants.
Yahoo
2 hours ago
- Yahoo
9 myths about home equity: What homeowners often get wrong
Home equity sounds like a pretty straightforward concept: it's the portion of your home you truly own, free and clear of debt. However, when it comes to understanding concepts like how home equity grows, the differences between home equity products, or how much equity you can borrow against – people can get a lot of things wrong. As a Certified HELOC Specialist, I often field many questions from confused homeowners on everything about home equity, including what it is, how to tap into your home's value, how that may impact your primary mortgage and more. A quick scroll through social media or online forums reveals a lot of misinformation out there. To help cut through the noise, I'm using this Bankrate column to dispel nine myths and misconceptions about home equity and home equity borrowing – revealing the truth that every homeowner needs to know. Just because the value of your home is $500,000 doesn't mean you have $500,000 in equity. Home equity is based on your home's worth, but it's not the same thing. To figure out your home equity, you have to subtract your mortgage balance from the appraised value of your home. So, if your home is valued at $500,000, but you still owe $350,000, your equity stake is $150,000. Understanding this distinction is important, especially if you're considering borrowing against your equity or selling your home. 2. Myth: Home equity always grows over time Since the COVID pandemic, home prices and homeowner equity levels have soared to record highs. Some people assume that both will keep climbing — but as anyone who owned a home in 2008 can tell you, that's not always the case. Residential real estate values declined drastically during the Great Recession. In fact, millions of homeowners found themselves in negative equity: owing more on their mortgages than their homes were worth. Markets fluctuate and if home prices drop, so can your equity. Take what we're seeing in 2025. The median home prices hit an all-time high of $422,800 in May 2025, and the average mortgage-holding homeowner has $302,000 in accumulated home equity as of the first quarter of this year, according to Cotality. But the pace of home price growth is slowing. And as home price appreciation slows, so do equity stakes. In fact, that $302,000 represents a loss of more than $4,000 in equity over the past year. Not always. True, when you take out a mortgage, your home equity builds slowly at first as the early payments mostly cover your loan's interest. As time passes, a greater portion of the payment goes to principal, speeding up equity growth. This process is known as mortgage amortization. But not all paths to home equity growth involve the long game of paying down your mortgage. You can gain immediate equity by making a larger down payment or paying closing costs upfront instead of rolling them into the mortgage when you buy a home. Additionally, making extra payments towards your loan's principal can help you increase your housing stake faster. Home renovations can also boost your property value and, in turn, your equity. But remember, not all renovations offer the same return on investment (ROI). Some improvements, like kitchen or bathroom upgrades, tend to have a higher ROI than others. I've often heard the terms HELOCs (home equity lines of credit) and home equity loans used interchangeably when describing home equity borrowing. Yes, both are financing products that allow you to borrow against your home's value. Both also use your home as collateral, meaning you could lose it if you don't make payments on either of them. That's where most of the similarities end. A home equity loan gives you a lump sum at a fixed rate, keeping your payments stable for the life of the loan. In contrast, a HELOC is a revolving line of credit with a variable rate, meaning your monthly payments may fluctuate based on the amount you borrow and market conditions. The other differences? With a home equity loan, the interest is applied to the entire loan amount, but with a HELOC, interest is only charged on withdrawn funds. Mixing up the two and not fully understanding the differences can lead to some expensive surprises down the road. It's true that home equity loans and HELOCs often come with lower rates than personal loans or credit cards. But we must not confuse 'lower' with 'low.' In today's higher interest rate environment, they're not always the deal they once were. For example, as of July 2, HELOC rates were averaging just over 8.25 percent, and some ran as high as 12.50 percent, according to Bankrate's national survey of lenders. Home equity loan rates were similar, running as high as 10.47 percent. The exact rate you are offered depends on several factors, including the lender, the loan type, your credit score and even where you live. Some advertised rates also include discounts if you sign up for automatic payments or have a checking account with that lender. No matter what some TikTok influencers are saying, a HELOC is NOT like refinancing your mortgage. HELOCs and home equity loans are considered second mortgages, which means they're completely separate debt from your primary mortgage. Everything connected with that stays untouched, including its interest rate. The confusion may arise from another equity-tapping vehicle, the cash-out refinance. This refi involves replacing your original mortgage with a bigger one; you take the difference — which is based on your equity stake — as a cash payout. That means you start fresh with a new mortgage, rate and terms. Even if they miss HELOC or home equity loan payments, some homeowners assume that as long as they're paying their primary mortgage, their home is safe from foreclosure. They couldn't be more wrong. While HELOCs and home equity loans are second mortgages, they are still secured by your home. Regardless of whether your first mortgage is in good standing, the home equity lender has the right to start foreclosure proceedings if you are in default, which is 90 to 120 days of missed payments. In the event of a foreclosure, your primary lender does get paid first. But that doesn't stop the second lender from trying to recoup its share. Both lenders have a legal claim to your home, and if you're in default on the second mortgage, it can trigger a foreclosure that puts your home at risk. Just because you have a large percentage of equity in your home, doesn't mean you can borrow all of it. Most lenders won't let you go above 80 to 85 percent of your home's value when borrowing, also referred to as the loan-to-value (LTV) ratio. Put another way: You have to leave 15 to 20 percent of your ownership stake untouched. Limiting the amount you can borrow provides a cushion that protects both you and the lender if your home falls in value. How much equity you can borrow also depends on your mortgage balance. When computing that LTV, home equity lenders look at both the amount you want to borrow and your current mortgage debt. So if the LTV limit is 80 percent, and your mortgage balance makes up 50 percent of your home's value, you'll only be able to borrow 30 percent of the value, regardless of how much equity you have. That said, there are some lenders that allow you to borrow 90, 95 or even 100 percent of the equity in your home. But there's usually a trade-off: you will likely be charged a higher rate. You also have to meet certain requirements, like having a very strong credit score, a strong loan-to-value ratio, or borrowing within a specific loan amount range. The bottom line: While hundreds of thousands of dollars in equity might look like a big number on paper, it's not real cash in your pocket. Nor will all of it ever be. Even if you own your home entirely, usually you'll be required to leave around one-fifth of your equity untapped. A reverse mortgage is a loan that allows you to borrow against your home equity. But instead of you having to pay the bank, the bank pays you (hence, the name). Whether taken in installments or as a lump sum, the funds are tax-free (though not interest-free). It is true that you must be at least 62 years old to qualify for a Home Equity Conversion Mortgage (HECM), the most popular type of reverse mortgage, which is backed by the Federal Housing Administration. However, a HECM isn't the only option. Proprietary reverse mortgages are available for homeowners 55 and older. Offered by private lenders, these mortgages are not insured by the government. They are sometimes referred to as jumbo reverse mortgages because they allow homeowners to access larger amounts than the HECM limit, which is $1,209,750 in 2025. Designed for higher-valued homes, loans are typically available in amounts up to $4 million, though you have to meet specific home equity, income and credit score requirements. A home and its equity is the biggest asset many people will ever own. So it's important to understand how your equity works and how you can – and can't — use it. With all the confusing jargon, hard-sell ads, and questionable advice on social media, it's easy to get steered in the wrong direction. Always consult a professional financial advisor or lender before making any moves: They'll help you distinguish home equity fact from fiction. 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Yahoo
3 hours ago
- Yahoo
Does the "big, beautiful bill" eliminate taxes on Social Security?
As Congress was approving President Trump's "big, beautiful bill" on Thursday, the Social Security Administration touted the legislation by stating that it "eliminates federal income taxes on Social Security benefits for most beneficiaries." That claim, which echoes previous promises by Mr. Trump to remove taxes on Social Security, may have come as welcome news for the millions of older and disabled people who depend on the program for income. So does the bill deliver? Not entirely. In a press release, SSA said that the tax and spending package, which the president is set to sign into law on Friday, "ensures that nearly 90% of Social Security beneficiaries will no longer pay federal income taxes on their benefits." That figure draws on a June analysis by the White House's Council of Economic Advisers that said 88% of seniors — or 51.4 million people — on Social Security will pay no tax on their payments under the measure because their deductions would exceed their taxable benefits. The bill "includes the largest tax break in American history for our nation's seniors," CEA said, adding that "the deductions ensure that seniors who earned their Social Security through years of hard work get more money back in their pockets." Yet while it's true that the bill offers fresh tax relief for some people on Social Security, it is misleading to suggest that the measure does away with taxes on Social Security benefits, policy experts told CBS MoneyWatch. Rather, the bill offers relief by creating a new "bonus" tax deduction for beneficiaries. "While the deduction does provide some relief for seniors, it's far from completely repealing the tax on their benefits," Garrett Watson, director of policy analysis at the Tax Foundation, a Washington, D.C., think tank, told The Associated Press this week ahead of Congress approving the bill. The Social Security Administration did not respond to a request for comment. The White House declined to comment. How does the "big, beautiful bill" impact Social Security? The bill doesn't eliminate taxes on Social Security, but rather introduces a temporary deduction that beneficiaries can claim to lower their federal income tax. Notably, that deduction applies to all of a senior's income — not just to Social Security benefits. Bobby Kogan, senior director of federal budget policy at the Center for American Progress, a nonpartisan think tank in Washington, D.C., told CBS MoneyWatch the bill doesn't change the taxation of Social Security benefits. Eliminating taxes on Social Security under the bill was impossible because of a congressional restriction (dubbed the Byrd Rule after late West Virginia Sen. Robert Byrd) that limits what the Senate can include in a reconciliation bill like the Republican budget measure. What the bill does do is provide a temporary tax deduction of up to $6,000 for seniors aged 65 and older. The tax break is available to people with an adjusted gross incomes of $75,000 or less and $150,000 or less for couples filing jointly. The deduction is set to expire at the end of 2028. "Each spouse can take the deduction, for a total of $12,000, if both are 65-plus," AARP explains in its analysis of the budget bill. The deduction phases out for people who earn above those amounts. Social Security recipients under 65 and people above the specified income thresholds are ineligible to claim the new tax deduction. It also won't benefit the many low-income seniors who already pay no federal income tax because they earn too little. "Boosting the amount that you get to write off when you already get to write off everything does not help you at all," Kogan said. The Tax Foundation, a nonpartisan policy research group, said in a June report that exempting Social Security benefits from taxation would not change the after-tax income for the bottom 20% of taxpayers, noting that "those taxpayers are already exempt from taxation on their Social Security benefits." The biggest beneficiaries of the bill will be higher-income seniors, said Martha Shedden, president and co-founder of the National Association of Registered Social Security Analysts, which focuses on Social Security education. "The people who benefit by definition have to be richer, and people who benefit the most are the richest people," Kogan added. More pressure on Social Security? Providing a temporary tax deduction is likely to help some Social Security recipients, but it could also worsen the retirement program's fragile financial state, Kogan said. Social Security is on track to deplete its trust fund by 2034 if Congress does not take action. "We already have a problem of not enough money going into the trust fund. This bill makes even less money go into the trust fund," he said. The Penn Wharton Budget Model, a University of Pennsylvania think tank that studies fiscal issues, estimates that eliminating income taxes on Social Security benefits would lower federal revenue by $1.5 trillion over 10 years and increase the federal debt by 7% by 2054. As the debate continues over how to shore up Social Security while offering tax relief to older Americans, one thing is clear, and perhaps politically unpalatable: cutting benefits. According to a AARP-funded survey from the National Academy of Social Insurance released in January, 85% of Americans think benefits should not be reduced, or that they should be increased, even if it means raising taxes on some or all Americans. "Virtually all Americans want their Social Security benefits to be preserved and are willing to do what it takes to ensure the program continues to provide meaningful support for future generations," said AARP Chief Public Policy Officer Deb Whitman in a statement after the survey was released. What a new DOJ memo could mean for naturalized U.S. citizens July 4 holiday week expected to set record for travelers Group meets to handwrite the U.S. Constitution
