Direct deposit incentive checks could begin this weekend after Biden signs COVID relief bill – Community News
Stimulus Check

Direct deposit incentive checks could begin this weekend after Biden signs COVID relief bill

President Joe Biden Signed the $1.9 Trillion US bailout plan turned into law on Thursday, paving the way for his administration to provide more unemployment, direct cash and other coronavirus relief to millions of Americans.

Mr Biden’s move followed the House’s approval of the measure on Wednesday and Senate approval on Saturday. “This landmark legislation is about rebuilding the backbone of this country and giving a chance to the people of this country, the workers, the middle class and the people who built the country,” Biden said before he signed the bill.

White House press secretary Jen Psaki said the first wave of direct deposit checks would begin in Americans’ bank accounts as early as this weekend. Payments are expected to continue in the coming weeks. In a new ad Addressing the stimulus plan, Mr. Biden said more than 85% of people will receive one of the $1,400 checks.

The nearly $2 trillion pandemic package was announced by poverty and unemployment experts, who said the $1,400 checks and other benefits — such as an extension of the additional $300 a week unemployment aid for millions of unemployed people and an expansion of the Child Tax Credit for Low Income Households — will help families pay their bills and lift children out of poverty.

Nearly half of Americans are still financial pain a year after the pandemic shut down the economy and caused massive layoffs, according to the Pew Research Center.

Working families will get $1,400 per person from a third stimulus check, plus they’ll benefit from a muscular child tax credit [of up to $3,600 per child]noted Andrew Stettner, an unemployment expert at the Century Foundation, a progressive think tank. “That’s real help that can help reverse the unprecedented economic inequalities exposed and exacerbated by the pandemic.”

When can you expect $1,400 incentive checks?


Stettner added, “The federal response to COVID-19 has already averted poverty for millions of Americans, and this package stands poised to continue that critical work.”

Emergency bill spending this year is likely to boost U.S. economic growth, economists say. Moody’s Investors Service forecasts real GDP growth of 4.7% in 2021 and 5% next year, thanks in part to stimulus measures and other fiscal support to households.

“This is the most sweeping legislation any of us will ever be a party to,” House Majority Leader Nancy Pelosi said after the bill passed that chamber on Wednesday.

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CBS News polls show that the bill is highly popular with the public, with three in four Americans agreeing to pass it. Two-thirds of Americans also said Mr Biden is doing a good job in dealing with the pandemic.

Fewer Americans Likely To Receive Checks In Third Round Of Incentive Payments As Bill tightens the income threshold for qualifying for the $1,400 checks compared to the previous two rounds of direct checks.

The economic impact of the COVID-19 pandemic on L…


The American Rescue Plan regulates the direct payments of $1,400 to individuals earning up to $75,000, but excludes eligibility for singles earning more than $80,000. For couples filing a joint federal income tax return, the phaseout starts with those earning $150,000 and ends at $160,000. People who file their tax returns as householders will receive the full $1,400 if they earn less than $112,500, while payments will be halted for those earning more than $120,000.

To see how much you might receive, use this online Omni calculator to determine your eligibility and your potential payment.

When will the checks come?

The president signed the bill before Sunday, March 14, an important date as the current additional $300 in weekly unemployment aid would expire at that time. The US bailout will see the additional $300 in weekly unemployment continue through September.

In addition to the $1,400 checks, the account provides financing for small businesses; offers families with children a tax break up to $3,600 per child; and increases government spending on COVID-19 testing and contact tracing.

The legislation would send $350 billion to state and local governments and tribal governments for costs incurred through the end of 2024. The bill also requires small states to receive at least the amount they received under virus legislation passed by Congress last March. Schools will also benefit, with $130 billion in additional funding targeting schools for kindergarten through 12th grade students.

Spending on colleges and universities would be increased by about $40 billion, with the money used to cover an institution’s pandemic-related expenses and provide emergency aid to students to cover expenses such as food and housing and computer equipment. And a new program targeting restaurants and bars hit by the pandemic will receive $28.6 billion. Other measures include help with rent and assistance to homeowners and increased support to help people pay for health insurance premiums under the Affordable Care Act.

The previous two rounds of stimulus checks required days to months to reach consumers’ checking accounts and mailboxes. The second stimulus check, which was approved in late December, moved faster than the first, with some people receiving their checks just days after the law was signed.

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The IRS relies on a taxpayer’s most recent tax return to determine how much to receive and when to receive it. Therefore, some tax experts had urged taxpayers to: submit their returns as soon as possibleespecially if they had a major life change last year, such as the birth of a child or the loss of a job or income in 2020.

Because the IRS officially began accepting tax returns on February 12 and will close the filing window on the usual April 15 date for most Americans, the bill has been signed halfway through tax filing season.

If a taxpayer hasn’t filed their 2020 tax return by now, the IRS will likely rely on their 2019 tax return to calculate their stimulus check payment — and that 2019 return may not reflect income losses during last year’s economic crisis or a new child, for example. In that case, a taxpayer may not get as much stimulus money as he is entitled to.

These are the income limits for checks

A person’s income is the main determinant of whether they will get a check, as is the amount of payment.

The payments are $1,400 for a single person or $2,800 for a married couple filing jointly. Only individuals earning up to $75,000 would get the full payments, as would married couples earning up to $150,000. Payments would decrease for incomes above these thresholds.

The bill cuts off singles earning more than $80,000 and married couples earning more than $160,000. At the first stimulus control, the cutoffs were higher, at $100,000 for individuals and $200,000 for married couples.

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Some lawmakers argued that controls should target lower-income families, citing research showing higher-income families are recovering from the economic impact of the pandemic. But other research points to widespread financial pain across the country, with the ranks of adults experiencing financial difficulties having changed little since December, according to Morning Consult economist John Leer.

A third round of $1,400 checks would allow nearly 23 million adults to pay their expenses for more than four months without taking on more debt or eating up their savings, his analysis found.

“That third stimulus check is absolutely essential,” Credit Karma Chief People Officer Colleen McCreary told CBS MoneyWatch. “I don’t see a world where people will have their financial footing without some extra stimulus money.”

The Associated Press contributed to this report.