On Saturday, the Senate approved a $ 1.9 billion stimulus package with a vote of 50 to 49, which paved the way for its final passage through the House. early next week, after which President Joe Biden is expected to sign the package into law.
That means a third round of direct cash payments is on the way soon – but there are some differences compared to the stimulus bill passed by Congress in December.
This payment round is specifically a bit larger for most of those who have previously received checks. Instead of the $ 600 sent out in December, individuals will receive as much as $ 1400, depending on their income. However, the revenue threshold for receiving a check will also be stricter this time around, after moderate Senate Democrats used their leverage to negotiate a lower maximum eligible income with the Biden White House.
According to the Institute for Taxation and Economic Policy, about 17 million fewer people will receive a third round of incentive payments than would be under the House bill, but about 280 million people will still be eligible.
Here’s what you need to know:
Who qualifies for a direct payment of $ 1400?
Unlike previous payment rounds, the award of the new checks of $ 1,400 can be determined based on tax returns from 2019 or 2020, depending on whether you have yet to file by 2020 – and whether the IRS has processed your return. In general, the federal government will use the most recent revenue information it contains to be eligible.
Here’s who is eligible for payment:
- Adults who earned $ 75,000 or less in their last tax year will receive the full amount of $ 1,400, as well as married couples earning $ 150,000 or less, and housekeepers earning $ 112,500 or less.
- Adults earning more than $ 75,000 but less than $ 80,000; married couples earning more than $ 150,000 but less than $ 160,000; and household heads who earned more than $ 112,500 but less than $ 120,000 are eligible for a reduced payment.
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Online calculators can give you an idea of how much you can expect, based on variables such as your filing status and the number of dependents.
- Adults earning more than $ 80,000, married couples earning more than $ 160,000 and housekeepers earning more than $ 120,000 are not eligible for checks.
- Parents also receive an extra $ 1400 check for each dependent claimed on their tax returns. Unlike previous direct payments, all dependents are eligible – including university students and some people with disabilities, not just children under 17.
- Undocumented immigrants cannot receive direct payments. However, households in which one adult resides legally and the other may not be eligible for at least one check.
- If you did not file a tax return in 2019 and have not yet done so in 2020, you can use the free IRS fill-out form to do so to receive a stimulus test.
When will I receive a direct payment?
It is still unclear exactly when the latest Covid-19 assistance package will be signed into law, but it is expected to take place before March 14, when federal unemployment benefits will expire. This means that checks are likely to appear in the second half of March, depending on a few different factors.
- As is the case with the last two incentive checks, recipients of direct deposits are likely to receive their checks the fastest. As CNET notes, direct deposit payments began registering in accounts about two weeks after the last incentive package was passed. If the redemption account is signed according to the expected schedule, the first payments can start appearing in the bank accounts the week of March 22nd.
- Physical inspections are expected to take about a week longer than direct deposits, and it will start from March 29.
- Finally, the payment of economic impact, or EIP, can be the longest. The prepaid debit cards may start to disappear in the week of April 5, depending on when the stimulus package was signed.
Is there anything I need to do to get a check?
As Fabiola Cineas and Ella Nilsen of Vox explained after Congress passed its previous round of direct payments, most people do not have to do anything to get a stimulus test. If you filed tax in 2019 or 2020, met the eligibility requirements and included your direct deposit information, the payment should appear in your account in the coming weeks.
If your direct deposit information has not yet been submitted to the IRS, you can still provide the information using the IRS ‘”Get My Payment” tool before the latest wave of payments begins.