Stimulus checks: why you won’t receive another payment for weeks – if you do

Stimulus checks: why you won’t receive another payment for weeks – if you do

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Former President Donald Trump’s second impeachment trial will postpone any Congressional action, and lawmakers are scheduled to go into recess during President’s Day – meaning that there may be no progress on a deal by the end of the month.
It takes at least several days for the first payments to be processed after any legislation is signed, and it takes months to deliver payments to everyone who is eligible. The Treasury is still trying to reach some people who should have been paid in the first round last year.
President Joe Biden is asking lawmakers to include money for additional direct payments in a comprehensive Covid relief bill. Although the Senate passed a fundamental procedural step on Friday, which will allow Democrats to pass legislation without the threat of obstruction by Republicans, lawmakers will only now begin to draft the bill.

The final vote may take place at the end of February, after the Senate impeachment trial has ended. Lawmakers hope to pass the legislation by March 14.

If and when the account is approved – and new stimulus payments are included – it is possible that the IRS will start sending the money quickly to people whose bank details are on file.

When the $ 600 payments were approved in late December, the agency took just two days after signing the bill to start handing over the money. But the new eligibility restrictions that lawmakers are considering may slow the process.

How much will the payments be?

Biden asked Congress to send an additional $ 1,400 to Americans who are already receiving $ 600 from the package approved by Congress in December, bringing the total to $ 2,000.

But a group of 10 Republicans, who sent their own proposal to Biden earlier this week, asked for $ 1,000 to be paid. Biden said he would like to garner bipartisan support for the bill, but made it clear in a liaison with House Democrats on Wednesday that the main figure is non-negotiable.

Who will be eligible?

Biden proposed to keep the income limits the same as in previous stimulus payments – but indicated that he is open to reducing them.

Previously, individuals who earned less than $ 75,000 and couples who earned less than $ 150,000 received the full amount. The $ 600 payments are gradually phased out, cutting money for single childless users who earn more than $ 87,000 and childless couples who earn more than $ 174,000.

Families with children were eligible for more money. For example, a couple with two children who earn just over $ 250,000 a year would still receive a partial payment, according to the Tax Foundation.

The Republican proposal would provide full payment to individuals who earn less than $ 40,000 a year and couples who earn less than $ 80,000 – and payments would be phased out more quickly, cutting off individuals who earn more than $ 50,000 and couples who earn more than $ 100,000.

About 29 million fewer families would receive money under the Republican plan, according to analysts at The Penn Wharton Budget Model, who warned that the figures are preliminary, as no formal legislative text is available yet.

About 95% of families would fit into Biden’s proposal, compared with 78% in the GOP plan.

A non-binding Senate vote on Thursday over an amendment to restrict the eligibility of the stimulus check was widely supported, going from 99 to 1, with only Republican Senator Rand Paul of Kentucky voting against it. The change does not specify who will not be eligible for payments, except “higher income taxpayers are not eligible” and does not mean that the eligibility requirements will be changed on the final invoice. But it shows bipartisan support for making a change.

CNN’s Lauren Fox, Phil Mattingly, Ted Barrett and Paul LeBlanc contributed to this report.

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