Will there be a stimulus payment of $250 coming in 2011?

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Deborah Mann answered
  • General Observations
There will be more deductions and credits made available to most Americans in 2011, which will be funded from the $700 billion stimulus package, topped up by annual funds from President Obama's budgets. Despite some complaints and debate over the wisdom of these stimuli, there is no doubt they are of great use to people in low income brackets.

No new stimulus measures have been announced at all. For example, there is no tax break for trading in outmoded or outdated cars with older, less efficient engines, although there are benefits to someone taking out renewable energy for the home. Roughly one third is returnable to you from the government, but there is nothing else new.

  • The $250 question
This is unlikely to be paid out again. The cost of providing the initial outlay of finance was enormous in attempt to jump start the economy and has been considered only a minor success in this respect and there is no plan for a second series of pay outs at the moment.

No doubt this would change if the economic situation changes, but unless it changes for the worse again, it is highly unlikely that any more general handouts like this will be paid. There are no rises forecast for social security either.

The previous payout cost the US government roughly $13 billion. This makes it unlikely that it will be regularly repeated. It was purely a one off incentive.
  • Other measures.
Most other measures take the form of tax credits, providing $400 for an individual and $800 for a couple. This phases out at $190,000 for jointly filing couples and $95,000 for single filing people. The credit is refundable and it is payable even if you owe no tax. Most low income workers will qualify for this.

Any other stimulus measures you qualify for will come directly from the government, paid in exactly the same way as you would receive Social Security.

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