When the next stimulus checks are issued, how much will you receive?

With Democrats running Congress running to get COVID’s relief legislation at President Joe Biden’s desk by mid-March, a third $ 1,400 stimulus check could take just a few weeks.

How much your family receives this time depends on an IRS formula. A bill released on Friday and sent to the House for voting next week would provide $ 1,400 per adult and another $ 1,400 for each dependent, regardless of their age.

See how the tax agency will determine your payment and why filing your taxes earlier can give you an advantage in getting the maximum amount.

How do you qualify for a stimulus check

To determine your eligibility for a stimulus check, the IRS will use your most recent income tax return and focus on your adjusted gross income. This is your taxable income before deductions.

The House bill would phase out payment amounts of $ 1,400 for individuals with adjusted gross income above $ 75,000. For family heads, the limit is $ 112,500 and $ 150,000 for couples filing joint actions.

These are the same income limits used for the first two stimulus checks. House Democrats joked about restricting eligibility for a full payment this time to individuals earning less than $ 50,000; they ended up deciding against it, but the Senate could bring the idea back.

Republicans have been pushing for lower income limits to ensure that checks reach only the neediest Americans. The ways in which people used last spring’s first $ 1,200 stimulus checks varied by income, with the poorest families spending their money primarily on essential needs, including groceries and rent, the Bureau of Labor Statistics found. USA.

Others, making more money, used part of the money to save and invest – or to pay off debt, according to an agency survey.

More family members will make money this time

For the third batch of stimulus checks, families that meet income requirements will receive $ 1,400 for each member of the family, including dependents of all ages.

The story continues

In the previous two rounds, the money was paid only to dependents under the age of 17. And with the first checks, families were paid only $ 500 per child; round # 2 increased that amount to $ 600.

The new checks will give $ 7,000 to a family of five that includes two parents and three children; they would have received $ 3,000 in the recent second round.

Families with dependents who have been disqualified from the last two checks will see an even greater increase. Let’s say your family is made up of two parents, a child and an 18-year-old. Your family of four will receive $ 5,600 this time, compared to just $ 1,800 in the second round.

Who’s out of luck this time?

Under the elimination scheme for third stimulus checks, partial payments will be made to individuals earning up to $ 100,000, heads of households with an income greater than $ 150,000 and couples who enter together and earn more than $ 200,000 . Americans above these income levels will not receive any money this time.

How do you ensure that your family gets the most money? If your family income dropped in 2020, you will want to log in to a good tax software product and get your statement immediately so that the IRS can take your reduced income into account.

If it looks like you won’t be getting a $ 1,400 total check – or any money – there are a few things you can do:

• Reduce your budget and “make your own” stimulus check. By finding some creative ways to cut back, you can possibly pull another $ 1,400 out of your current budget. For example, it may be time to discard streaming services or other monthly subscriptions that you are not actively using. And download a free browser extension that will do all the work for you to find the best prices and coupons whenever you shop online.

• Turn your busy work into your business. Do you have a special hobby or skill? Turn this into a sideways move to generate extra income. Create a profile in an online marketplace for freelancers and turn your talents into capital.

What if you need money now?

With the third stimulus checks still several weeks away from your bank account, here are some ways to make a little bit of space in your budget if you can’t wait and need more money immediately.

• Reduce the cost of your plastic. Have you been struggling with your credit cards during the pandemic? Of course, sliding is easy, but interest will catch up quickly. Get your debt in order – and pay it off faster – by consolidating your debts into a single, lower-interest debt consolidation loan.

• Make savings your policy. If you are not driving so much because of the pandemic, your car insurer can give you a discount on the rate. If your insurance company does not fold, break ties and look for a better deal. And while you do that, you can save hundreds of dollars on home insurance by comparing rates to find a lower price on that coverage.

• Refinance your mortgage (if you have one) and reduce your payments. If you haven’t refinanced your mortgage loan in the past year, it’s time to check your options. It is estimated that 16.7 million homeowners in the USA could reduce their monthly home payments by on average $ 303 through a refi, according to mortgage data and technology provider Black Knight. Rates remain historically low, so refinance your existing mortgage for big savings.