Timeline of Stimulus Payments to Individuals, 2020-2021ġ. More recently, Treasury’s Inspector General for Tax Administration (TIGTA) reported on additional steps IRS should take to recover improper payments. In September 2020, we reported that the EIP improper payment rate was around 2% and IRS took some actions to recover those payments. Refundable tax credits sometimes have issues with improper payments (payments made in the wrong amount or to the wrong person). These pandemic-related payments to individuals far exceeded other stimulus payments made to individuals in recent history. From July to December 2021, eligible families received advance monthly payments of half their total expected CTC, benefiting about 84% of children in the US.Īccording to Census Bureau and Federal Reserve assessments of survey data, the EIPs and advance CTC payments reduced financial hardship and food insufficiency among recipients. The American Rescue Plan Act of 2021 also temporarily expanded the eligibility of the Child Tax Credit (CTC) to more families and increased the credit amounts. The CARES Act, the Consolidated Appropriations Act, 2021, and the American Rescue Plan Act of 2021 (Public Laws 116-136, 116-260, and 117-2, respectively) authorized three rounds of Economic Impact Payments (EIPs) that went to around 165 million Americans. Big Pictureįrom April 2020 to December 2021, the federal government made direct payments to individuals totaling $931 billion to address pandemic-related financial stress. We made recommendations to strengthen Treasury and IRS’s outreach and communications efforts for the billions of dollars in similar tax credits IRS administers, such as the Earned Income Tax Credit. However, some eligible Americans never received payments. In 20, IRS and Treasury issued $931 billion in direct payments to individuals to ease financial stress due to the COVID-19 pandemic.
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