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The IRS is sending out extra stimulus checks, and jobless claims are worse than expected: Here's how the headlines could affect your money

"The taxpayer should receive the additional amount automatically," a CPA says of the IRS payments.

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Markets were flat, first-time jobless claims came in worse than expected, and the IRS is sending out extra "plus-up" stimulus payments. Here's how the headlines could affect your money.

Markets take a breather

The Dow rose 0.1% Wednesday, while the S&P 500 climbed 0.1% to end the session at a record high. The Nasdaq fell about 0.1%.

Markets were mixed Thursday morning. The S&P hit yet another new high.

Jobless claims worse than expected

More Americans than expected filed first-time unemployment claims during the week ending April 3. Jobless claims reached 744,000 for the period, which was an increase from the prior week and worse than economists expected. 

The pace of new job openings hit a record high in February, jumping 5% year over year, according to the Labor Department. That's a sign of improvement, Fed Governor Lael Brainard said recently. While the economic outlook has "brightened considerably," however, there's still "some distance to go before the [best] outcomes are achieved," she said.

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IRS sending out extra stimulus checks

Expect more stimulus money to come your way if you had a child last year or lost income in the Covid crisis. The IRS is distributing "plus-up" payments to eligible Americans who didn't get some or any of the money they were owed from one or more of the previous three rounds of federal payments.

The latest batch of stimulus payments sent Wednesday included more than 1 million "plus-up" payments worth more than $2 billion "for people who earlier in March received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns," according to the IRS. Those payments will continue on a weekly basis as the agency continues to process 2020 and 2019 tax returns.

"The taxpayer should receive the additional amount automatically" between now and the summer, says Janet Holtzblatt, senior fellow at the Urban-Brookings Tax Policy Center.

Words you've heard: overleveraged

Being overleveraged means a person or company has borrowed more money than they can actively afford to pay back. For example, as the pandemic hurts Americans' finances, some homeowners are overleveraged with their mortgage and falling behind on payments.

Although the daily news can have an impact on your wallet, remember to take a long-term outlook when it comes to decisions on spending, saving, and investing.

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