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On Saturday, the Senate approved a $ 1.9 trillion stimulus package by a vote of 50 to 49, paving the way for its final passage through the House. Begining of the next week, after which President Joe Biden is expected to sign the package into law.
This means that a third round of direct cash payments will soon be underway – but there are some differences from the stimulus bill passed by Congress in December.
Specifically, this round of payments will be a bit larger for most of those who have already received checks. Instead of the $ 600 sent in December, individuals will receive up to $ 1,400, depending on their income. However, the income threshold for receiving a check will also be stricter this time around, after moderate Senate Democrats used their influence to negotiate a lower maximum eligible income with the White House Biden.
The changes mean around 17 million fewer people will receive a third round of stimulus payments compared to the House version of the bill, according to the Institute on Taxation and Economic Policy, but some 280 million people will still be eligible.
Here’s what you need to know:
Who is eligible for a direct payment of $ 1,400?
Unlike previous payment cycles, eligibility for the new $ 1,400 checks can be determined based on your 2019 or 2020 tax returns, depending on whether you’ve already filed for 2020 – and whether the IRS has processed your return. In general, the federal government will use the most recent income information available to determine eligibility.
Here is who is entitled to a payment:
- Adults who earned $ 75,000 or less in their last tax year will receive the full $ 1,400, as will married couples who earned $ 150,000 or less and heads of households who earned $ 112,500 or less. less.
- Adults who earned more than $ 75,000 but less than $ 80,000; married couples who earned more than $ 150,000 but less than $ 160,000; and heads of households who earn more than $ 112,500, but less than $ 120,000, will be entitled to a reduced payment.
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Online calculators can give you an idea of what to expect, depending on variables like your filing status and the number of dependents.
- Adults earning over $ 80,000, married couples earning over $ 160,000, and heads of households earning over $ 120,000 will not be eligible for checks.
- Parents will also receive an additional check for $ 1,400 for each dependent claimed on their tax return. Unlike previous direct payments, all dependents – including students and some people with disabilities, not just children under 17 – will be eligible.
- Undocumented immigrants are not eligible to receive direct payments. However, households in which one adult has legal residence and the other does not would be eligible for at least one check.
- If you haven’t filed a tax return in 2019 and haven’t yet done so in 2020, you may be able to use the IRS’s free fill-out form to do so in order to receive a stimulus check.
When will I receive direct payment?
It’s still unclear exactly when the last Covid-19 relief plan will be signed, but it should happen before March 14, when federal unemployment benefits are currently set to expire. This means that the checks will likely start showing in the second half of March, depending on a few different factors.
- As was the case with the last two stimulus checks, direct deposit recipients are likely to get their checks the fastest. As CNET notes, direct deposit payments started recording in accounts about two weeks after the latest stimulus was passed. So, if the back-up invoice is signed on schedule, the first payments could start showing up in bank accounts the week of March 22.
- Physical checks are expected to take about a week longer than direct deposits and are expected to start rolling out from around March 29.
- Finally, Economic Impact Payment Cards, or EIPs, could take the longest time. Prepaid debit cards can start rolling out the week of April 5, depending on when the stimulus package is signed.
Do I have to do anything to get a check?
As Vox’s Fabiola Cineas and Ella Nilsen explained after Congress passed its previous round of direct payments, most people don’t have to do anything to get a stimulus check. If you filed taxes in 2019 or 2020, meet the eligibility criteria, and have 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 registered with the IRS, you can still provide this information using the IRS ‘Get My Payment’ tool before the last wave of payments begins.
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