How to make sure your next stimulus check matches the total of $ 1,400

With Democrats leading Congress aiming to get pandemic relief legislation on President Joe Biden’s desk by mid-March, a third stimulus check – this time for $ 1,400 – could be in a few weeks.

The new payments are included in a massive bailout now heading to the US Senate, after securing House approval early Saturday. Saying there is “no time to waste,” Biden urges the Senate to act quickly.

The amount your household will receive this time will depend on an IRS formula. The current proposal would provide up to $ 1,400 per adult plus $ 1,400 for each dependent, regardless of age.

Here’s what you need to know about how the tax agency will determine your payment, and why filing your returns earlier can give you an advantage in getting a stimulus check for the maximum amount.

How will you qualify for a full recovery test

To determine your eligibility for the third pending stimulus check, the IRS will use your last tax return and focus on your adjusted gross income, which is your taxable income before subtracting the standard deduction or itemized deductions.

The plan currently before the Senate would offer a full payout of $ 1,400 to people with an adjusted gross income of up to $ 75,000. For heads of households, the threshold is $ 112,500 and $ 150,000 for married couples filing jointly.

These are the same income limits that were used for the first two dunning checks. House Democrats tried to restrict full payments this time around to people earning less than $ 50,000, but ultimately decided against it.

The Senate could bring the idea back, because Republicans and some Democrats support lower income limits to ensure checks only go to the needy. The way people used the first $ 1,200 stimulus checks last spring varied by income, with the poorest households spending their money mostly on basic necessities, including groceries and rent.

Others, making more money, used some of the money to save and invest – or to pay off debt, according to a survey by the US Bureau of Labor Statistics.

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More family members will get money this time

For the next batch of stimulus checks, families who meet the income requirements will receive $ 1,400 for each member of the household, including dependents of all ages.

In previous rounds, money was only paid out to dependents under the age of 17 – older teens and student dependents were excluded. And, although adults received checks for $ 1,200 the first time around, families only received $ 500 per child. The second round increased that amount to $ 600, like what the adults got.

Here’s an example of what the changes would mean for a family of five with two parents and three young children: They will receive a total of $ 7,000 of the new stimulus check, against $ 3,000 during the recent second round table.

Families with dependents who were disqualified from the last two checks will see an even bigger bump. Let’s say your family is made up of two parents, a young child and an 18-year-old. Your family of four can expect to receive $ 5,600 this time against only $ 1,800 on turn 2.

Who is unlucky this time?

The third stimulus checks will be phased out at incomes above the previously mentioned limits. Small payments would go to:

• Individual filers with adjusted gross income between $ 75,000 and $ 100,000.

• Heads of household with AGI between $ 112,500 and $ 150,000.

• Couples who jointly deposit with AGI between $ 150,000 and $ 200,000.

Taxpayers with incomes above the highest levels will not receive money this time around.

How do you make sure you get the most money? If your household income dropped last year due to the pandemic, you’ll want to log into good tax software and have your 2020 return filed immediately. This way the IRS will not count on the higher income on your 2019 tax return.

What if you need more money today?

With the third stimulus checks still a few weeks away from your bank account, here are some ways to save some room in your budget if you can’t wait and need more cash. at once.

• Reduce the cost of your plastic. Did you rely heavily on your credit cards during the pandemic? Sure, the balayage is easy, but the interest will catch up with you in no time. Get your debt in order – and pay it off faster – by consolidating your debts into one low-interest debt consolidation loan.

• Make savings your policy. If you don’t drive as much because of the pandemic, your auto insurance company may offer you a reduction on your fare. If your insurer doesn’t fold, break ties and shop around for a better deal. And while you’re at it, you could save hundreds on your home insurance by comparing rates to find a lower price on that coverage.

• Refinance your mortgage (if you have one) and lower your payments. Millions of U.S. homeowners could cut their monthly payments by hundreds of dollars a month through a refi, mortgage data and technology provider Black Knight reported in early February. Rates remain historically low, so refinance your current mortgage for big savings.

• Cut your budget and “write your own” stimulus check. By finding a few creative ways to cut your expenses, you could squeeze an additional $ 1,400 out of your current budget. For example, maybe it’s time to dump the streaming services you don’t watch. And download a free browser extension that will find you the best prices and coupons every time you shop online.