This probably covers more than half of the families eligible for this third round of payments, which were included in Covid’s $ 1.9 trillion relief bill signed by President Joe Biden less than a week ago.
Most of that first batch of payments was sent by direct deposit and all recipients will have access to the funds on Wednesday, the agencies said.
The government also mailed around 150,000 paper checks.
Click here to access the IRS Get My Payment tool to check the status of your payment.
More batches of payments will be made in the coming weeks through direct deposit, paper checks and prepaid debit cards.
No action is necessary for most people to receive the money. Social Security beneficiaries and those receiving Veteran Affairs benefits must also receive the money automatically, even if they do not report taxes.
People can check the status of their payments using the IRS’s Get My Payment tool online.
Who gets paid?
Payments amount to $ 1,400 per person and are expected to reach 85% of households, according to the White House.
Families will receive an additional US $ 1,400 per dependent, so a couple with two children can receive up to US $ 5,600. Unlike previous rounds, families will now receive additional money for adult dependents over the age of 17.
The total amount goes to individuals who earn less than $ 75,000 of adjusted gross income, heads of household (such as single parents) who earn less than $ 112,500 and married couples who earn less than $ 150,000. But then payments gradually decrease as revenue increases.
Lawmakers have narrowed the scope of payments this time so that not everyone who received a previous check will receive it now. It cuts individuals who earn at least $ 80,000 a year in adjusted gross income, heads of households who earn at least $ 120,000, and couples who earn at least $ 160,000 – regardless of how many children they have.
In what year are income limits based?
The new revenue limits will be based on the most recent taxpayer statement. If they have already filed a 2020 return by the time the payment is submitted and processed, the IRS will base eligibility on your 2020 adjusted gross income. Otherwise, it will be based on the 2019 statement or information submitted by through an online portal created last year for people who do not usually file an income tax return.
If your 2019 income was less than your salary in 2020, you should not return any money. But if your income dropped in 2020, filing your tax return now – before payments are made – could mean that you will receive a bigger check.
MORE: What to know about third-party stimulus checks and tax filing times
Reaching those who need it most
Most people receive payments automatically, but many have missed out – for a variety of reasons. It is estimated that 8 million eligible people did not receive the first round of payments made last year.
Many of these people have very low incomes and are not usually required to file tax returns. Last year, the IRS created an online portal where they could register to receive the money.
At the moment, the IRS has no plans to reopen the portal. Instead, authorities are encouraging people to file tax returns for 2020. Low-income people can use the agency’s free filing option.