On Saturday, the Senate approved a $ 1.9 trillion stimulus package for a 50-49 vote, paving the way for its final House approval. early next week, after which President Joe Biden is expected to sign the package as law.
This means that a third round of direct cash payments will be underway – but there are some differences from the stimulus bill approved by Congress in December.
Specifically, this round of payments will be slightly longer for most of those who have received checks in the past. Instead of the $ 600 sent in December, individuals will receive up to $ 1,400, depending on their income. However, the income limit for receiving a check will also be stricter this time, after Senate Democratic moderates used their influence to negotiate a lower maximum eligible income with the Biden White House.
These changes mean that around 17 million fewer people will receive a third round of stimulus payments than they would receive under the version of the bill approved by the Chamber, according to the Institute of Taxation and Economic Policy, but about 280 million people will still be eligible.
Here’s what you need to know:
Who qualifies for a direct payment of $ 1,400?
Unlike previous rounds of payments, eligibility for new $ 1,400 checks can be determined based on the 2019 or 2020 tax returns, depending on whether you have already filed for 2020 – and whether the IRS has processed your return. In general, the federal government will use the most recent income information it has on file to determine eligibility.
Here’s who is eligible for a payment:
- Adults who earned $ 75,000 or less in the most recent fiscal year will receive a total of $ 1,400, as well as couples who earned $ 150,000 or less and heads of households who earned $ 112,500 or less.
- Adults who earned more than $ 75,000, but less than $ 80,000; couples who earned more than $ 150,000, but less than $ 160,000; and breadwinners who have earned more than $ 112,500, but less than $ 120,000, will be entitled to a reduced payment.
-
Online calculators can give you an idea of how much to expect, based on variables such as the status of the process and the number of dependents.
- Adults who earned more than $ 80,000, couples who earned more than $ 160,000, and heads of households who earned more than $ 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 returns. Unlike previous direct payments, all dependents – including college students and some people with disabilities, not just children under the age of 17 – will be eligible.
- Undocumented immigrants are not eligible to receive direct payments. However, families where one adult is legally resident and the other is not entitled to at least one check.
- If you did not file an income tax return in 2019 and have not yet done so in 2020, you can use the free IRS filing form to do so and receive a stimulus check.
When will I receive a direct payment?
It is not yet clear exactly when Covid-19’s latest aid package will be sanctioned, but it is expected to happen before March 14, when federal unemployment insurance is set to expire. This means that checks are likely to start appearing in the second half of March, depending on a few different factors.
- As was the case with the last two stimulus checks, recipients of direct deposits are likely to receive their checks more quickly. As CNET notes, direct deposit payments started to be registered in the accounts about two weeks after the last stimulus package was approved. Therefore, if the relief bill is signed by the scheduled deadline, the first payments may begin to appear in bank accounts in the week of March 22.
- Physical checks are expected to take about a week longer than direct deposits and are due to start to be issued on or after March 29.
- Finally, economic impact payment cards, or EIP, can take longer. Prepaid debit cards may start to expire in the week of April 5, depending on when the stimulus package is signed into law.
Do I need to do anything to receive a check?
As Vox’s Fabiola Cineas and Ella Nilsen explained after Congress passed their previous round of direct payments, most people don’t have to do anything to get a stimulus check. If you declared taxes in 2019 or 2020, met the eligibility requirements and included your direct deposit information, the payment should appear in your account in the coming weeks.
If your direct deposit information is not yet filed with the IRS, you can still provide these details using the IRS “Get My Payment” tool before the latest wave of payments starts to come out.