As mentioned last week here in this post, the $1400 + all dependents stimulus checks were approved and officially “On Their Way” or as they say the “Check is in the mail” a little over a week ago!
The most important item to know in this third round of checks are the almost “hard stop/cliff like” phase outs, unlike the prior stimulus funds, this phase out is steep and sharp. Single filers lose all benefits at $80k and joint filers $160k AGI.
Our Informal Observations Spotty Delivery
Delivery of the stimulus funds were much more spotty using our internal informal poll. Some families and their grown children as of today have seen nothing, even though they received funds immediately in the prior two rounds. Then in other situations after continued polling, we found no problems, with all grown children and families receiving their funds last week.
This popped into my inbox Monday from the IRS – Issue Number: IR-2021-62
More Economic Impact Payments set for disbursement in coming days; taxpayers should watch mail for paper checks, debit cards
WASHINGTON – The Internal Revenue Service announced today that the next batch of Economic Impact Payments will be issued to taxpayers this week, with many of these coming by paper check or prepaid debit card.
For taxpayers receiving direct deposit, this batch of payments began processing on Friday and will have an official pay date of Wednesday, March 24, with some people seeing these in their accounts earlier, potentially as provisional or pending deposits. A large number of this latest batch of payments will also be mailed, so taxpayers who do not receive a direct deposit by March 24 should watch the mail carefully in the coming weeks for a paper check or a prepaid debit card, known as an Economic Impact Payment Card, or EIP Card. No action is needed by most people to obtain this round of Economic Impact Payments (EIPs).
In a misery loves company, if you have not received your funds yet, YOU ARE NOT ALONE!
So do not worry.
Key Planning Technique
For those on the edge of the cliff phase out of single $80k or JT filing $160k this is for you.
if your 2019 Return is under these thresholds… do not file your 2020 until you get your funds.
If your 2020 Return will get you under the threshold… run, don’t walk to file your return.
If you fail both of the above filing years, you have a chance if your 2021 return falls under the threshold you will get the stimulus in the form of a refund after you file your 2021 Return.
Here is what this looks like in flow chart form:
Where to Check For Your Stimulus
Just as in the prior two instances of stimulus, the IRS has updated their site to help you find your availability, amount and how you may receive your stimulus.
Here is the direct link to the website for security purposes, as there are very important/confidential questions you must answer to get this information – do not let your browser jump to a different address as sensitive information is needed to do the check:
While many may argue contrary to our fantastic Social Security speaker whom we have had twice now Mr. Tom Clark who assures us that Social Security will always be there, many do not believe this for various reasons.
No matter your beliefs or age we highly encourage you to check your Social Security Statement and most importantly your Social Security Earnings Record.
Earnings Benefit Credit Statement
Do not be concerned if just as this example, does not show your 2020 earnings posted as of yet there have been some delays and normally this is not posted at an early time in the year anyway .
What we want to be concerned about is if there are gaps in our earnings history or a partial credit (change of employers) that should have been credited. there are many reasons that this can occur such as just a lost document in the Mail or an employer was bought out or closed and did not report your hard earned earnings period.
How Do I Find This Statement?
In 1999, the Social Security Administration mailed a paper copy to everyone every year. Budget cuts a dozen years later stopped this handy paper copy, leaving all of us to easily forget to double check our statement annually.
For the record according to the Administration folks at age 60 are supposed to receive a paper copy, but our informal poll shows a low hit ratio.
Not to worry, it is not that hard set up an account, ESPECIALLY if it is your first time.
Go to www.ssa.gov and either log into your account or create an account and pull down your statement…
Oh, keep your credentials safe … lost mine and was a huge pain getting logged back into the site!
Have a Great “Social Security Earnings History Check Reminder” Day!
As mentioned last week this is a re-run post that is timely and a good idea to do every year…. hat tip DK!
Knowing your credit score and your credit report has become increasingly important. With updates in technology and increases of consumer related fraud, we all need to keep an eye on our credit and our credit score for protection.
Why Do I need to Know or protect my score?
While you may not owe anyone, anything i.e. have a loan with anyone … well done by the way….. A bad credit score can still affect items such as your automobile and your homeowners premiums… no kidding (see this Forbes article.) We cannot blame them, there is data to check and it is their responsibility and ability to review it.
Bottom line a bad credit score or report may be costing you more money.
How do I get a copy of my credit report?
After you get your score, you may want to get a detailed copy of your credit report. Go to www.annualcreditreport.com, which is a free service offered for your own protection by the three agencies. There are tons of sites out there that are not free and try to seduce you into paying an unnecessary monthly fee, this site has been checked and is safe.
You may request all three services or just use one and keep the other two available at a later time. This may be handy as you only get one free report per agency per year. If you stagger the reports you can inquire at different times, keep later dates open for inquiry.
If your report is good, there is likely no reason to get more than one agency report. If your report has deficiencies you may protest from the site as it is reported.
Taking time to review your credit and credit score is easy and may save you angst and money!
With an unused make up snow day today (not sure how that happened but oh well) – kiddos out today – and next week being Spring Break an attempt personally to take some R & R time next week, I am out today and next week….
Always tethered, this time lightly as Jen and Donald are very capable of covering !
BREAK IN – Spring has sprung… each year the family watches for the early budding Tree in the back yard… Great News, the deep freeze of just a few weeks ago did not do our early budding tree in AND in the last 24 hours the blooms have started…
Who needs the Groundhog… kidding-
Well done Pierce for spotting !
While gone, the finishing touches will be put on the Newsletter, AND next week we will do a shortened version of one of the main articles – Why You Should Check Your Social Security Earnings Record Now!
Time Change Weekend – YAY
In addition to a little R and R, next week, we get my favorite time change! YAY
Sure we lose an hour of sleep…
Sure it seems to take a bit longer to adjust as the years go by…
But the Suns stays up LATE in the evenings…
Friday and Next Weeks Posts
If I can stay away from the keyboard – no promises…haha
In addition to the Newsletter Preview Post mentioned above, a re-run of another reminder post will occur as well.. hat tip DK from the field as a neat reminder!
Ahhhh…. but today is a Friday and I am away, but tethered lightly… enjoy your weekend and your Friday!
In some ways it seems like an eternity…. in others it seems like a weird dream …. and in others it seems like only yesterday we started with a shutdown of the US Economy to thwart the spread of Covid….
Fast forward to today and we are almost exactly one year to the day when direct Economic Effects began ….
Get Ready For Some Crazy Macro Reports
Many, but not all Economic reports are Year over Year comparisons…
Imagine as we compare reports to an almost shut down economy, especially just in the very near term… to a much more robust, but of course not at full capacity Economy?
Here is the GDP from Fred (Federal Reserve St. Louis) – A rather slower moving Economic Measurement
Today, the United States Bureau of Labor Statistics Reported the most recent CPI number… here
This is February 2020 to February 2021 – likely to look much different next month!
Over the next few quarters many Economic numbers may have some really jaw dropping changes… just be aware it is likely better to use month over month comparisons if possible for a better measure.
We bet we will all see some pretty interesting Headline Reported numbers though!
Over the weekend while on an extended walk with the 16 year old’s dog, a new Podcast Series from Grant Williams had an interesting guest with an even more interesting theory…
The theory from the guest was that food prices and the increase and decrease there of acts as and inflationary or deflationary force on economies.
His logic was that we must all eat and if you watch food prices around the world you can see a big correlation to not only the afore mentioned economic forces but also government interaction to help offset bad side effects of these movements….
Meet the USDA Economic Research Department
Being HUGE fans of government research sites, (no copyright problems) the USDA Economic Research Department of Agriculture is a new one on our radar…not only that, but this huge page of Interactive Graphs will be watched more closely with important ones likely finding a place here for all of our collective review….
Our favorite starting point graphs to follow … note food is third on the expenditure list … lending credence to Grants podcast guest view:
How about food price movement as it relates to Economic Cycles?
There were certainly spikes prior to these three recessions….
Here is a more detailed chart of expenditures of food at the personal level:
On the margin, food has cost less out of pocket over time.
Ya, ya we are nerds, but this is very interesting stuff to us, especially such a new and interesting Theory worth watching!
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investments may be appropriate for you, please consult your financial advisor prior to investing!
The is the vocal portion of J.K. Financial, Inc. a Dallas Texas Based Fee Only Total Wealth Financial Planning Firm. Founded by John Kvale, a Dallas Texas Fee only Financial Planner and Total Wealth Manager.