SALT LAKE CITY, Utah — Financial experts anticipate more Americans will actually spend the money they receive in the latest round of stimulus payments.
Financial experts predict more spending, less saving
Many Utahns who received the first two stimulus deposits opted to keep that money in the bank, according to Shane Stewart with DMBA.
“We heard that a lot of people were just saving it,” he explained. “They either didn’t need it or felt they were OK. Maybe even saving it for a rainy day not knowing what the future held.”
He’s anticipating a different mindset this time, considering Utah’s vaccine rollout is moving quickly and many people are expecting to spend more time away from home soon.
“Vaccinations are becoming more prevalent, so there’s some light at the end of the tunnel. At least some hope there,” said Stewart.
Any impact on tax season?
One of the more frequently asked questions about the stimulus payment is whether it will impact tax filings. Stewart says just like the previous two payments, it will have no impact since the deposits are not considered personal income.
“One thing that people need to understand is that this is a stimulus package,” he stated. “They don’t expect you to pay it back and they don’t expect you to treat it as income.”
When looking at the state as a whole, Stewart says Utah’s economy has emerged from the last year of the pandemic in good shape and it will only be bolstered by many residents receiving a third stimulus payment.
“The hope is that we’ll all go out and spend that on these local, small businesses,” he said.
White House Press Secretary Jen Psaki has indicated some Americans may receive their new $1,400 coronavirus stimulus checks as soon as this weekend. It comes after President Joe Biden officially signed the $1.9 trillion COVID relief bill earlier this week.
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