A third stimulus check is in the Covid relief law. Here’s how to get your full payment. – Community News
Stimulus Check

A third stimulus check is in the Covid relief law. Here’s how to get your full payment.

WASHINGTON — The Democrat-controlled Congress on Wednesday approved its largest round of coronavirus stimulus payments, sending the bill to President Joe Biden’s desk for his signature.

The White House said it plans to issue the $1.9 trillion Covid-19 package on Friday. It would trigger the third round of stimulus checks — after the $1,200 payments made in March last year and the $600 payments in the December bill signed by President Donald Trump.

The IRS has yet to iron out some details. But for now, here are some questions and answers about how payments would work, according to information provided by Democratic staffers who wrote the bill and Treasury employees responsible for executing it.

Why $1,400? Biden pledged $2,000

He did promise $2,000 in payments — but in the context of raising payments in the December bill, which Republicans capped at $600. Biden says the $1,400 checks would live up to the promise when added to the earlier payments. .

Okay, so who gets the money?

Individuals earning less than $75,000 or householders earning less than $112,500. For married couples filing their taxes jointly, both are eligible for the full amount if they earn up to $150,000 together. (Couples would get $2,800.)

Individuals making $75,000 to $80,000 would still get checks, but they would be less than $1,400. The same goes for heads of household earning $112,500 to $120,000 and couples earning $150,000 to $160,000.

Those who earn more get no payments.

What about my children?

In addition to the adult amounts, parents would get up to $1,400 more for each child on their tax return. That includes adult children, such as college students, and people with permanent disabilities, as opposed to last year’s incentive payments.

So if you are a family of four with a household income of less than $150,000, you should get $5,600.

So some people who had money last time wouldn’t do it now?

Correct. Biden agreed with moderate Senate Democrats’ demands to more closely “target” the checks, meaning that individuals making $80,000 to $100,000 (and couples earning $160,000 to $200,000) get no money.

What if I lost my job last year and now earn less?

This is important: People who lost their jobs last year or whose incomes fell for any reason should file their tax returns as soon as possible to get the maximum payment. If the IRS processes your new return by the time the checks go out, that’s the income on which the payments are based.

If you don’t file on time, it would be based on your income in 2019 – before the pandemic hit.

And what if my income increased last year?

Then you can probably get a bigger check if you wait to file your tax returns after they’ve gone out. As long as you made less than $80,000 in 2019, that is. But don’t wait too long either: the deadline for filing tax returns is still April 15.

Is it via direct deposit or paper check?

If the IRS has your bank account information on file, it would bring in the money via direct deposit. (In previous rounds, that was the fastest way.) If not, a paper check would be mailed to your address. You don’t have to do anything but make sure your most up-to-date information is in place.

If it’s a paper check, will Biden sign it like Trump did?

New. The White House has said his name will not appear on the checks.

Do I have to pay tax on the payments?

New.

I am on social security and do not file a tax return. What about me?

The Treasury Department hasn’t formally announced it yet, but it’s best to fill in your information in the non-filer portal to make sure you’re in the system.

I am not a US citizen, but I am a legal resident. Am I eligible?

Yes, if you have a social security number.

I live illegally in the US and pay taxes. Will I get a check?

New. You need a valid social security number. An Individual Taxpayer Identification Number would not count.

What if I am married to an undocumented immigrant?

You would be reimbursed and your spouse would not. The same goes for your children – any family member with a Social Security number would get a payment, and those who didn’t would be excluded.

I owe child support. Can they take my check?

If you owe child support or student debt to the federal government, you should be protected from seizure. But debts to private entities are not protected because of the mysterious Senate rules governing the process. (That’s a change from last year, when Congress used a different process that didn’t have this limit.)

OKAY. When will this bill become law?

The House gave final approval on March 10 to the Senate-approved version, which sends the legislation to Biden’s desk. The White House said it will sign the bill Friday afternoon.

And how fast would the payments go out?

The IRS has already done this a few times, so it should be fast. The White House says it expects to begin distributing the money this month, and a Treasury Department spokesman said they will get the money “as soon as possible.” Keep an eye on your bank account or mailbox after Biden signs the bill Friday.