President Joe Biden’s $ 1.9 trillion stimulus package has passed Congress and millions of eligible Americans will soon receive direct payments of $ 1,400.
The Treasury Department confirmed on Wednesday that the first batch of checks will go to those who provided direct deposit information in 2019 and 2020 tax returns, according to CNBC. Those with direct deposits also received their payments first, when the last two stimulus checks were distributed, as electronic payments are faster than sending paper checks and Economic Impact Payment (EIP) cards.
After the direct deposit group, the second group of recipients will be those who have not provided electronic payment information in tax records, but have their information filed with the IRS due to other government programs.
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The government will send paper checks and EIP cards to recipients who do not have their direct deposit or bank account details with the IRS.
On Tuesday, White House press secretary Jen Psaki said the Treasury Department and the IRS have been working hard to ensure that payments start to come out before the end of March.
“The IRS and the Bureau of the Fiscal Service are taking advantage of the lessons learned from previous rounds to increase the number of families that will receive electronic payments, which are substantially faster than checks,” she said.
Biden is expected to sign the American Rescue Plan on Friday.
The majority leader in the House, James Clyburn, of South Carolina, told MSNBC on Tuesday that he is “very hopeful that some relief can be achieved early next week.” IRS about a week to begin processing after the president’s formal approval.
Under the bill, individuals earning less than $ 75,000 and heads of households with an income not exceeding $ 112,000 will receive a total payment of $ 1,400. Couples earning less than $ 150,000 will receive a combined total of $ 2,800 and families will receive an additional $ 1,400 for any eligible dependents. Individuals who earn less than $ 80,000 will receive a lower payment and individuals who earn more than the limit will be completely eliminated.
According to the Senate Finance Committee, administrators will determine eligibility using the most recent individual income recorded – 2019 or 2020. The IRS began collecting tax returns on February 12, so that individuals who filed the application before check out you will receive an amount based on the 2020 income tax return and those who do after will receive an amount based on your 2019 income tax return.
Newsweek contacted the Treasury Department for more information.