The Senate on Saturday approved for President Biden a $ 1.9 billion coronavirus relief package, which directs a third round of stimulus checks to most Americans. This raises questions about when the checks could end up in bank accounts, especially for those who are dealing with work or loss of income.
The bill will return to the House early next week for final approval, as the version of the bill on the Senate and the House has some differences, and then goes to Mr. Pray for his signature. After the bill is signed into law, the IRS can begin delivering the checks within a few days to one week, based on the time frame for the previous round of checks – possibly as early as the weekend of March 13th.
“By next weekend, a couple earning less than $ 160,000 could deposit $ 2,800 into their checking account,” said Chris Krueger of Cowen & Co. said in an analysis statement before the Senate approved the bill, which he expected would take place over the weekend.
The spending of the spending bill was announced by experts against poverty and unemployment, who said the $ 1400 checks as well as other provisions – such as an extension of the extra unemployment benefit of $ 300 a week and an extension of the child tax credit – be extended. will help families pay their bills and lift children out of poverty. Nearly half of Americans are still experiencing financial pain a year after the pandemic shut down the economy and caused major layoffs, according to new research from the Pew Research Center.
“Working families will receive $ 1,400 per individual from a third incentive check, plus they will benefit from a muscular child tax credit of $ 3,000 per child,” Andrew Stettner, an unemployment expert at the Century Foundation, said in a statement on Saturday. email statement noted. . “This is real help that can help stem the unprecedented economic inequalities exposed by the pandemic.”
He added: “The federal response to COVID-19 has already wiped out millions of Americans, and this package is ready to continue the critical work.”
Applause and cheers
The passage of the bill by the Senate was received with cheers and applause from Democrats, who all voted for it. Because GOP Senator Dan Sullivan left on Friday due to an emergency in the family, Vice President Kamala Harris does not have to visit the Capitol to break ties.
Fewer Americans, however, could receive checks in the third round of stimulus payments due to a change in the Senate’s version of the bill. Mr. Biden and moderate Democratic senators have reached an agreement limiting the number of households eligible for the $ 1,400 checks. The revised limits would not entitle millions of Americans to the payment.
The Senate bill directs direct payments of $ 1,400 to individuals earning up to $ 75,000, but cuts off suitability for single people earning more than $ 80,000. For couples filing a joint federal income tax return, the phasing out begins with those earning $ 150,000 and ends at $ 160,000.
“I wanted the income threshold to be kept at previous levels” – $ 75,000 for singles and $ 150,000 for couples – Sen. Ron Wyden of Oregon said Wednesday in a call to reporters before the vote. “And we succeeded.”
He added: “I would have preferred what we had before, but I do not want to distract people from basic performance” to maintain the $ 75,000 and $ 150,000 revenue thresholds.
Passage before March 14?
Democrats want the bill to be signed before March 14, when the current extra $ 300 weekly unemployment benefit expires. The Senate bill extends the $ 300 boost to September, as opposed to the House bill that would increase the increase to $ 400 a week through August.
In addition to the $ 1400 checks, the account would fund money for small businesses, schools and cities and states; offer families with children a tax break; and increase government spending on COVID-19 testing and contact tracing.
IRS timeline
If the bill is signed by March 12, the Friday before extra unemployed aid expires, stimulus checks could begin to get bank accounts from a few days to a week thereafter, based on the IRS time frame for distributing the second round of stimulus tests. in December.
Earlier this month, the IRS said it was taking into account the relief bill to prepare for the spread of the next round of payments. “We are keeping a close eye on the hill,” said Ken Corbin, the IRS’s chief taxpayer experience, although he did not predict when the tax agency would be able to hand out the checks.
The IRS relies on a taxpayer’s most recent tax return to determine how much they should receive and when they can receive it. That’s why some tax experts ask taxpayers submit their return as soon as possible, especially if they have had a major life change, such as the birth of a child or the loss of job or income last year.
Since the IRS officially began accepting tax returns on February 12 and the filing window will close on the April 15 customary date, the bill could be signed with tax conditions during the middle of the season.
If a taxpayer does not file their 2020 tax returns before the bill is signed, the agency is likely to rely on their 2019 tax return to calculate their payment of stimulus checks – and that the 2019 proceeds may not include revenue losses during the past economic crisis year does not reflect. or for example a new child. In that case, a taxpayer may not receive as much incentive money as he is entitled to.
Income limits
The income of someone determines the most important question whether they will get a check as well as the payment amount.
The payments are $ 1400 for a single person or $ 2800 for a cohabiting couple. Only individuals earning up to $ 75,000 will receive the full payment, as well as married couples with an income of up to $ 150,000. Payments will drop for income above these thresholds.
The Senate bill cuts single people with incomes in excess of $ 80,000 and married couples earning more than $ 160,000. Under the first stimulus test, the cuts were higher: $ 100,000 for individuals and $ 200,000 for married couples.
Some lawmakers have argued that the checks should be aimed at lower-income families, citing research showing that higher-income families are recovering due to the economic impact of the pandemic. But other research points to widespread financial pain across the country, with the number of adults experiencing financial difficulties last month, according to Morning Consult economist John Leer, little from December.
A third round of $ 1,400 checks would enable nearly 23 million adults to pay their expenses for more than four months without incurring more debt or eating up their savings, according to his analysis.
“The third stimulus check is absolutely essential,” Credit Karma chief executive Colleen McCreary told CBS MoneyWatch. “I do not see a world where people would have their financial position without extra money.”