Who is eligible for a stimulus payment of $ 1,400 under the House bill

House Democrats passed the $ 1.9 trillion US bailout early Saturday morning, which includes provision for a third stimulus check worth up to $ 1,400 to taxpayers and each of their dependents.

People earning Adjusted Gross Income (AGI) of up to $ 75,000 (and married couples earning up to $ 150,000) will 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, payments gradually disappear. People earning an AGI over $ 100,000 per year and couples earning over $ 200,000 will not receive a check.

Unlike the two previous payments, dependent adults are eligible for this round. A previous report from the American Enterprise Institute estimates that up to 26 million more people – mostly students, adults with disabilities and elderly Americans – will now be eligible for payment. The check could arrive as early as next month.

Payments are based on 2019 or 2020 income. This means taxpayers may want to file their taxes before the bill is passed if that would allow them to pay a larger stimulus payment.

While many workers have experienced delays in receiving the unemployment insurance they are entitled to, stimulus checks, which are paid by the Internal Revenue Service rather than state governments, can help them stay on. day on their bills.

Some critics have argued that tighter income limits should be put in place for stimulus payments so that they only go to the poorest. While some recipients may have kept their checks, research has shown that many people spent their previous checks on rent, food, and other essential bills. In January, when checks for $ 600 hit bank accounts, personal spending rose 2.4%, according to data from the U.S. Bureau of Economic Analysis (BEA).

Democratic leaders say the $ 1,400 payments fulfill President Joe Biden’s promise of $ 2,000 checks when paired with the $ 600 payments sent in January. But some progressive critics say the government should send a full payment of $ 2,000 in addition to January’s.

The bill is now heading to the Senate. Democrats hope Biden signs it by March 14, when many federal unemployment provisions expire.

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