New $ 1,400 stimulus checks may be on the way for millions of Americans now that the House of Representatives has passed the latest coronavirus relief bill.
The fate of these payments is now in the hands of the Senate, which is due to begin analyzing the proposed law this week.
The terms required direct payments of $ 1,400 per individual and dependent.
Payments would be based on the same income limits as the first two stimulus checks. Individuals with up to $ 75,000 of adjusted gross income, heads of households with up to $ 112,500 and couples who enter up to $ 150,000 will receive full payment.
But checks would be eliminated for those with income above those levels. This time, they would be limited to individuals earning $ 100,000, heads of households at $ 150,000 and couples at $ 200,000.
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The coronavirus stimulus package is going through the Chamber and the Senate under budget reconciliation. This process is likely to avoid major changes to the plan, although the final numbers may be subject to change.
“There will be resistance and efforts to reduce the size of the package,” said Bill Hoagland, senior vice president of the Center for Bipartisan Policy, of the Senate talks.
Republicans are expected to question total spending of $ 1.9 trillion, especially with regard to state funds, multi-employer pensions and aid not directly linked to the Covid-19 pandemic, he said. (In fact, the House version passed from 219 to 210, without any Republican support.)
Since the $ 1,400 stimulus checks are one-time payments, they are not likely to become an obstacle in the negotiations, said Hoagland.
$ 1,400 prospective payment schedule
The legislation is expected to be finalized in mid-March, when increased federal unemployment benefits will expire.
As with the first two stimulus checks, most payments are likely to be sent via direct deposit to those who already have their bank information on file with the IRS. Based on the latest checks for $ 600, that money could begin to arrive two weeks after the legislation is finalized, according to Garrett Watson, senior policy analyst at the Tax Foundation.
The rest of the direct payments will be sent by post, either by debit cards or checks. Those payments could take longer to arrive, potentially in April and May, said Watson.
One of the reasons payments may be delayed this time around is the fact that the IRS will be in the middle of the tax season when they are canceled, he said.
However, experience with previous payments can help the process run more smoothly.
“The good news is that there is a little bit more infrastructure and a more formalized process to do this than last year, because they have been through this twice already,” said Watson.
This time, the checks are defined based on the returns of 2019 or 2020.
The IRS said it sent all the first and second “legally permitted” stimulus checks and is now focusing on the tax reporting season.
The tax agency sent more than 160 million $ 1,200 stimulus checks totaling more than $ 270 billion. It also sent over 147 million direct payments of $ 600, totaling more than $ 142 billion.
It is important to note that people who are eligible, but have not received previous payments, can claim the money through a recovery credit in their tax returns.