It is estimated that 85% of Americans will be eligible for payments as part of the $ 1.9 trillion COVID relief bill signed by President Joe Biden. The goal is to have millions of payments disbursed in the coming weeks.
The deadline is in line with how quickly December payments began to be processed three days after then President Donald Trump signed the bill.
But payments will not be all at once. Those whose bank information is filed with the IRS are likely to receive the money first, because it will be deposited directly into their accounts. Others may receive paper checks or prepaid debit cards in the mail.
Money usually appears for the first time in bank accounts as pending or provisional payments. Some banks have informed customers that the funds that appear this weekend will be available starting on Wednesday.
While the first batch of payments started to be processed on Friday, more will be launched in the “next few weeks,” a Treasury official said in a conference call with reporters on Friday.
Direct deposits will go out first, but paper checks and debit cards will be out before the end of the month.
No action is necessary for most people to receive the money. Social Security beneficiaries and those receiving Veteran Affairs benefits should also receive the money automatically, even if they do not report taxes.
People can start checking the status of their payments on Monday using the online IRS Get My Payment tool.
“If people do not see a direct deposit in the next few days, there is no reason to worry. These taxpayers will receive payments in subsequent installments,” said an IRS official on the conference call.
MORE: What to know about the third season of stimulus checks and tax returns
Who gets paid?
The money is expected to reach about 90% of households, according to an estimate from Penn Wharton’s Budget Model. 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 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 limited the scope of payments this time so that not everyone who received a previous check now receives it. 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.
The first round of payments that came out last year was up to $ 1,200 and excluded individuals who earned at least $ 99,000, heads of household with a child who earned more than $ 136,500 and childless couples who earn more than $ 198,000 – but families earning a little more would still be eligible if they had children. About 160 million payments were made, with 94% of households receiving the money.
The second round, which was worth up to $ 600, was eliminated a little faster because the total amount was less. It was totally eliminated by $ 87,000 for single registrars without children and $ 174,000 for married couples who jointly declared without children. Again, those who earn a little more are still eligible if they have children. About 158 million payments were made, with 92% of households receiving.
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 have been processed, the IRS will base the 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.
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.
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.
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. It is not yet clear whether the agency will open the portal again for the third round of payments.
People who have changed or changed their bank account since the last time they filed tax returns may also have been left out.
Those who owed money during the first two rounds of payments and did not receive it can claim it as a tax credit, known as Recovery Recovery Credit, in their 2020 tax returns.
The Associated Press contributed to this report.
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