House Democrats approved the $ 1.9 trillion American Rescue Plan on Saturday morning, which includes a provision for a third stimulus check in the amount of up to $ 1,400 for taxpayers and each of their dependents.
Individuals with an adjusted gross income (AGI) of up to $ 75,000 (and couples earning up to $ 150,000) will receive $ 1,400 each, plus $ 1,400 for each dependent. This means that a qualified family of four will receive $ 5,600.
After these revenue limits, payments are eliminated. Individuals earning an AGI over $ 100,000 per year and couples earning more than $ 200,000 will not receive a check.
Unlike the previous two payments, adult dependents qualify for this round. A previous report by the American Enterprise Institute estimates that up to 26 million more people – mainly college students, adults with disabilities and elderly Americans – will now be entitled to a payment. The check may arrive as early as next month.
Payments are based on 2019 or 2020 revenue. This means that taxpayers may want to file their taxes before the project is approved, if it yields a larger stimulus payment.
Stimulus money is often spent on rent and other necessities
While many workers have been late in receiving unemployment insurance to which they are entitled, stimulus checks, which are paid by the IRS instead of state governments, can help them keep up with their bills.
Some critics have argued that stricter income limits should be imposed on stimulus payments, so that they are only for the neediest. Although some recipients were able to save their checks, research showed 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 increased 2.4%, data from the United States Bureau of Economic Analysis (BEA) show.
Democratic leaders say the $ 1,400 payments fulfill President Joe Biden’s promise of $ 2,000 checks when combined with the $ 600 payments sent in January. But some progressive critics say the government should send a total payment of $ 2,000, in addition to January.
The bill now goes to the Senate. Democrats expect Biden to sign it by March 14, when many federal unemployment clauses will expire.
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