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WASHINGTON – Democrat-controlled Congress is set to pass its biggest round of coronavirus stimulus payments, keeping a campaign pledge from President Joe Biden.
If the $ 1.9 trillion Covid-19 relief bill passed into law, it would deliver the third round of stimulus checks – after payments of $ 1,200 last March and payments of $ 600 in the December bill signed by President Donald Trump.
The Senate is tweaking the House’s version of the bill, which is most likely to become law despite the Republicans rallying in opposition. It is always possible that some details will change before the process is completed and the money is released.
But for now, here are some questions and answers on how the payments would work under the Senate bill, according to information provided by the Democratic staff who drafted it:
Why $ 1,400? Biden pledged $ 2,000
He promised payments of $ 2,000 – but against the backdrop of increased payments in the December bill, which Republicans capped at $ 600. Biden says the checks for $ 1,400 would honor the promise when added to previous payments.
OK, so who gets the money?
Individuals earning less than $ 75,000 or heads of households earning less than $ 112,500. For married couples who file their taxes jointly, both would be eligible for the full amount if they earn up to $ 150,000 jointly. (Couples would receive $ 2,800.)
Individuals earning $ 75,000 to $ 80,000 would still receive checks, but they would cost less than $ 1,400. The same goes for heads of households earning $ 112,500 to $ 120,000 and couples $ 150,000 to $ 160,000.
Those who earn more will not receive payments.
What about my children?
In addition to the amounts for adults, parents would receive an additional $ 1,400 for each child on their tax return. This includes adult children, such as college students, and those with permanent disabilities, unlike last year’s stimulus payments.
So if you are a family of four with a family income of less than $ 150,000, you should receive $ 5,600.
So some people who got money last time wouldn’t do it now?
Correct. Biden accepted requests from moderate Senate Democrats to “target” checks more narrowly, meaning that people who earn $ 80,000 to $ 100,000 (and couples who earn $ 160,000 to $ 200,000) would not receive no money.
What if I lost my job last year and now earn less?
This is important: People who lost their jobs or whose income declined for any reason in the past year should file their tax return as soon as possible to get the maximum payment. If the IRS processes your new return at the time the checks are issued, this is the income on which the payments would be based.
If you don’t deposit on time, it would be based on your income from 2019 – before the pandemic hits.
What if my income increased last year?
Then you could probably get a bigger check if you wait to file your income tax returns after they’re released. As long as you made less than $ 80,000 in 2019, that is. But don’t wait too long, either – the deadline for filing income tax returns is still April 15.
Would it come by direct deposit or paper check?
If the IRS has your bank account information on file, it will deposit the money by direct deposit. (In previous rounds this was the fastest way.) Otherwise, he would send a paper check to your address. You don’t have to do anything other than make sure it contains your most up-to-date information.
If it’s a paper check, will Biden sign it like Trump did?
Not clear. A White House spokesperson declined to comment when asked about it.
Do I have to pay taxes on the payments?
No.
I am not a US citizen, but I am a legal resident. Would I be eligible?
Yes, if you have a social security number.
I live illegally in the United States and pay taxes. Will I receive a check?
No. You need a valid social security number. An individual tax identification number would not count.
What if I am married to an undocumented immigrant?
You will get a payment and your spouse would not. The same goes for your children – every family member with a Social Security number would receive a payment, and those who lacked it would be excluded.
I owe child support. Could they take my check?
If you have child support or student debt owed to the federal government, you should be protected from garnishment. But debt to private entities is not protected due to obscure Senate rules governing the process. (This is a change from last year, when Congress used a different process that did not have this limit.)
OKAY. When will this bill become law?
Democrats say they want it signed by March 14, and that’s still realistic. The House adopted a version. The Senate is in the process of adopting it in the coming days, barring any surprises. Then the House would have to vote again to pass the Senate version before they could get to Biden’s office.
And how quickly would payments be made?
The IRS has done this several times already, so it should be able to move quickly. But there is no exact timeline. Keep an eye on your bank account or mailbox after Biden signs the invoice.
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