Santa, aka the IRS, Might Be Dropping $1,400 into Your Stocking This Year

As the holiday season approaches, many Americans are eagerly awaiting their annual gift from Santa Claus. However, this year, the IRS might be the one leaving presents under the tree. The American Rescue Plan Act of 2021, signed into law by President Biden in March, includes a provision that could result in a $1,400 stimulus check for eligible individuals. This article explores the potential for these payments and the impact they may have on the economy.

The American Rescue Plan Act of 2021 aims to provide economic relief to individuals and businesses affected by the COVID-19 pandemic. One of the key provisions of the act is the expansion of the Child Tax Credit, which could result in a $1,400 stimulus check for eligible individuals. The credit is now fully refundable and available to families with children under the age of 18, regardless of their income level.

The potential for these payments is significant, as they could provide a much-needed boost to consumer spending and the overall economy. According to the Congressional Research Service, the expanded Child Tax Credit could result in a $100 billion increase in economic output over the next decade. Additionally, the payments could help reduce child poverty, with an estimated 4.1 million children lifted out of poverty due to the expanded credit.

However, there are challenges associated with these payments. One concern is the potential for fraud and abuse, as the IRS may struggle to verify the eligibility of all recipients. Additionally, the expanded Child Tax Credit is set to expire after 2025, which could lead to a cliff effect, where families suddenly lose access to the credit and may face financial hardship as a result.

The impact of these payments on the economy is uncertain, but they have the potential to provide significant relief to families and stimulate consumer spending. The expanded Child Tax Credit could help reduce child poverty and provide a much-needed boost to the economy as it recovers from the COVID-19 pandemic.


The potential for these payments is significant, but there are also challenges associated with their implementation. The IRS must work to ensure that payments are distributed efficiently and effectively, while also addressing concerns about fraud and abuse. Additionally, Congress must consider the long-term implications of the expanded Child Tax Credit and work to address any potential cliff effects.

In conclusion, the potential for a $1,400 stimulus check from the IRS this year is real, and it could have a significant impact on the economy. While there are challenges associated with these payments, they have the potential to provide much-needed relief to families and stimulate consumer spending. As the holiday season approaches, Americans should be aware of the potential for these payments and the impact they may have on their own financial situation and the broader economy.