House Democrats passed the $ 1.9 billion U.S. bailout plan early Saturday morning, which provides for a third stimulus check worth up to $ 1,400 for taxpayers and each of their dependents.
Individuals earning an adjusted gross income (AGI) of up to $ 75,000 (and married couples earning up to $ 150,000) receive $ 1,400 each, plus $ 1,400 for each dependent. This means that an eligible family of four will receive $ 5,600.
After these income thresholds, the payments are phased out. Individuals earning an AGI of more than $ 100,000 per year and couples earning more than $ 200,000 will not receive a check.
Unlike the previous two payments, adults qualify for this round. A previous report by the American Enterprise Institute estimates that up to 26 million more people – mostly college students, disabled adults and elderly Americans – are now eligible for payment. The check can arrive next month.
The payments are based on the income of 2019 or 2020. This means that taxpayers want to file their taxes before the bill passes, as it will give a larger incentive payment.
Stimulus money is often spent on rent and other necessities
While many workers experience delays in receiving the unemployment insurance to which they are entitled, stimulus checks, which are paid for by the Internal Revenue Service rather than by state governments, can help them stay abreast of their bills.
Some critics have argued that stricter income limits should be set on stimulus payments so that they only go to the needy. Although some recipients were able to save their checks, research has shown that many people have spent their previous checks on rent, food and other essential bills. Data from the U.S. Bureau of Economic Analysis (BEA)’s personal spending rose 2.4 percent in January, when $ 600 checks arrived at bank accounts.
Democratic leaders say the $ 1,400 payments live up to President Joe Biden’s promise of $ 2,000 checks, along with the $ 600 payments sent out in January. But some progressive critics say the government should pay a full $ 2,000 in addition to January.
The bill now goes to the Senate. Democrats hope Biden will sign it by March 14, when many federal unemployment provisions expire.
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