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It is estimated that 85% of Americans will be eligible for payments under the $ 1.9 trillion COVID relief bill signed by President Joe Biden. The goal is for millions of payments to be disbursed over the next few weeks.
The delay matches how quickly the December payments were made, which began to be processed three days after then-President Donald Trump signed the bill.
But not all payments will be made at the same time. Those whose banking information is registered with the Internal Revenue Service will likely receive the money first, as it will be directly deposited into their accounts. Others may receive paper checks or prepaid debit cards in the mail.
Money usually first appears in bank accounts as pending or interim payments. Some banks have told their customers that funds appearing this weekend will be available from Wednesday.
While the first batch of payments began processing on Friday, more will be rolled out in the “next few weeks,” a Treasury official said on a call with reporters on Friday.
Direct deposits will be made first, but paper checks and debit cards will be sent out before month end.
No action is required for most people to receive money. Social Security recipients and those receiving benefits from Veterans Affairs should also receive the money automatically even if they do not file income tax returns.
People can start checking their payment status on Monday using the IRS’s Get My Payment online tool.
“If people don’t see direct deposit in the next few days, there’s no reason to worry. These taxpayers will receive later installment payments,” an IRS official said on the call.
MORE: What You Need To Know About Third Stimulus Checks And The Tax Return Season
Who receives a payment?
The money is expected to reach about 90% of families, according to an estimate from the Penn Wharton Budget Model. Families will receive an additional $ 1,400 per dependent, so that a couple with two children could receive up to $ 5,600. Unlike previous rounds, families will now receive additional money for dependent adults over 17.
The total amount goes to people earning less than $ 75,000 in adjusted gross income, heads of households (such as lone parents) earning less than $ 112,500, and married couples earning less than $ 150,000. But then the payments gradually disappear as income increases.
Lawmakers have reduced the scope of payments this time around, so not everyone who received a previous check will receive one now. It excludes people who earn at least $ 80,000 a year in adjusted gross income, heads of households who earn at least $ 120,000, and married couples who earn at least $ 160,000 – regardless of the number of children they have. ‘they have.
The first round of payments made last year was worth up to $ 1,200 and excluded people earning at least $ 99,000, heads of households with one child earning over $ 136,500, and married couples without children earning over 198,000. $ – but families earning a little more were still eligible if they had children. About 160 million payments have been made, with 94% of families receiving this money.
The second round, which was worth up to $ 600, went a bit faster because the total amount was smaller. It was eliminated entirely at $ 87,000 for single filers without children and at $ 174,000 for married filers without children. Again, those who earned a little more were still eligible if they had children. About 158 million payments were made, and 92% of families received them.
What year are the income limits based on?
The new income thresholds will be based on a taxpayer’s most recent return. If they have already filed a 2020 return by the time the payment is sent and it has been processed, the IRS will base eligibility on their adjusted gross income for 2020. Otherwise, it will be based on the 2019 return or information submitted through an online portal set up last year for people who typically do not file a tax return.
At this time, the IRS has no plans to reopen the portal. Instead, officials are encouraging people to file tax returns for 2020. Low-income people can use the agency’s free file option.
If your income in 2019 was less than your salary in 2020, you will not owe a refund. But if your income has plummeted in 2020, filing your tax return now – before the payments are made – can mean you get a bigger check.
Most people receive payments automatically, but there are many who missed them – for various reasons. An estimated 8 million eligible people did not receive the first round of payments made last year.
Many of these people have very low incomes and are not normally required to file income tax returns. Last year, the IRS set up an online portal where they could register for money. It is not yet clear whether the agency will reopen the portal for the third round of payments.
People who have moved or changed bank accounts since the last time they filed a tax return may also have missed their account.
Those who were owed in the first two rounds of payments and did not receive it can claim it as a tax credit, known as the clawback refund credit, on their 2020 tax return.
The Associated Press contributed to this report.
The-CNN-Wire ™ and © 2020 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.
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