Raise update: Your best bet for a raise may be your tax refund

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When lawmakers issued a third stimulus check in March 2021, the US economy was still sluggish and jobs were hard to come by. On top of that, COVID-19 vaccines were not yet widely available, so some people had no choice but to stay out of the workforce in order to protect their health. This created a situation where it was easy to justify a third round of stimulus.

Fast forward to the spring of 2022, and many Americans are still struggling financially. But sadly, consumers shouldn’t expect a fourth round of stimulus to hit their Bank accounts soon.

Economic circumstances simply do not warrant widespread aid

It is true that inflation is crushing low-income households who could barely make ends meet before the cost of living started to rise. throw in the sky gas costs following the Ukraine crisis, and it’s easy to see why so many households are still betting on a fourth stimulus check. But that help is highly unlikely to arrive anytime soon, and that’s because the economy isn’t exactly in bad shape – although that may appear to be the case.

It’s easy to dismiss runaway inflation as a bad thing. But actually these days it’s a sign that consumers have money to spend and there aren’t enough items they want to spend it on.

Also, at this point, there is a sufficient supply of COVID-19 vaccines for anyone who is eligible to get one. Between that and an abundance of jobs, it’s hard to justify a fourth round of stimulus on the basis that Americans can’t find work — because that’s just not what we’re dealing with.

Can you create your own stimulus?

The latest stimulus checks that were sent out to the public were worth up to $1,400 each. But you may have another lump sum of money that can serve as your personal stimulus payment – your tax refund.

Now that the deadline for filing tax returns has passed, in the coming weeks many taxpayers should see their refunds start to arrive. And some of those refunds could be huge.

As of April 8, the average tax refund issued by the IRS this season was $3,175. That’s more than double the amount of the last stimulus check.

Of course, just because the average repayment at the beginning of April was $3,175 doesn’t mean that’s the sum you are beautiful come back from the IRS. But if you have a refund coming up, you can treat it the same way as a stimulus check. That means using it to catch up on essential bills, tackle important items you may have put off due to missing funds, like home repairs, and stick the part you don’t need right away in your savings account.

If economic conditions deteriorate, a fourth stimulus check could come back on the table. But that’s not something anyone should hope for. So if you’re struggling financially, your best bet is to create your own stimulus, whether that’s putting your tax refund to good use or boosting your income with a second job.

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