- A third round of stimulus checks is likely to pass in March.
- The proposed check would be the largest so far: up to $ 1,400 per person and $ 2,800 per couple.
- The checks are part of a $ 1.9 trillion bailout package called the American Rescue Plan.
- Visit Personal Finance Insider for more stories.
Congress is close to approving another massive coronavirus aid package, which includes a third round of direct cash payments to families, known as stimulus checks.
The proposed checks are larger than the previous two rounds and would pay up to $ 1,400 for individuals – including dependents of any age – and $ 2,800 for couples.
Here are answers to some of the most common questions about stimulus checks.
Yes, probably in mid-March. Direct cash payments are part of a larger $ 1.9 trillion economic package called the American Rescue Plan, which is being approved in Congress.
The House will vote on the bill on Friday. If approved, it will go to the Senate and may be amended before the final vote.
Anyone with a Social Security number who meets the income requirements is entitled to a payment. The amount is based on the 2019 adjusted gross income tax return (AGI), unless you file a 2020 return and it is processed at the time payments are sent.
In its current form, the bill provides that Americans with AGIs less than $ 75,000 will receive a total payment of $ 1,400 – including dependents of any age. This is a break from the last two rounds of stimulus, which did not include payments for dependents aged 17 and over, but included smaller amounts for children.
Household filers earning less than $ 112,500 would also receive a total of $ 1,400. Couples who file a lawsuit together and have an AGI of less than $ 150,000 will receive $ 2,800.
Reduced payments would be made to people in the following income groups:
- Unique filers with AGI between $ 75,000 and $ 100,000
- Household filers with AGI between $ 112,500 and $ 150,000
- Filers married to AGI between $ 150,000 and $ 200,000
Those who are not required to file income tax returns can also receive payments. The information collected through the IRS non-filter tool will be used to send the checks to these recipients. In addition, Social Security retirement and disability beneficiaries, as well as Supplemental Security Income (SSI) beneficiaries who do not report taxes, may receive payments.
After the legislation is passed by the House and Senate, President Biden will need to sign the bill before it becomes law.
During the last round of stimulus, the Treasury Department was able to initiate stimulus payments by direct deposit days after signing the bill. Checks and debit cards were mailed in the following weeks.
No. In its current form, the bill says the Treasury can use tax returns from 2019 or 2020 to determine someone’s payment.
However, if your income was lower in 2020 than in 2019, record your 2020 return as soon as possible so that you can qualify for a check that best matches your financial needs. The IRS began accepting and processing tax returns for 2020 on February 12.
You will need to file your 2020 income tax return to claim the stimulus money you owe in the first two rounds.
There will be a separate spreadsheet on your tax return with instructions to calculate any amount owed to you, if any. If you file your taxes using online software, the provider will ask you to enter the necessary information and do the calculations for you.
If you qualify for additional stimulus money, you will not receive it immediately. It will be applied first to your pending tax invoice. If your account is reduced to $ 0, the rest of the money will be added to your refund. The IRS provides most refunds within three weeks.