Third stimulus check: Do you get a stimulus check – and how much?
Third stimulus check: Do you get a stimulus check – and how much?

Third stimulus check: Do you get a stimulus check – and how much?

President Joe Biden $ 1.9 trillion emergency plan for coronavirus would provide a third round of federal stimulus checks to millions of Americans. Still, a new agreement between Mr. Biden and moderate Democratic senators limit the number of households it would qualify for $ 1,400 checks and cut off millions of other Americans who had hoped for the stimulus money.

Under the pending agreement, confirmed by CBS News, the direct payments of $ 1,400 would begin to phase out to $ 75,000 for individuals, but would cut off eligibility for singles earning more than $ 80,000. For couples applying together, the phasing out will begin for those earning $ 150,000 and end at $ 160,000.

The income phasing out would likely cut off millions of households that qualified for the previous two rounds of stimulus checks because of their higher income limits. For example, the first round of stimulus payments paid $ 1,200 to singles who earned $ 75,000 or less but phased out payments until they were cut off completely for single taxpayers with incomes above $ 99,000 – or $ 19,000 higher than the new agreement.

The IRS said it sent 30 million payments to households earning more than $ 75,000 during the first round of stimulus checks. Below the new lower income limit, it is likely that many of these households would not qualify for the full $ 1,400 check.

Some lawmakers have argued for stricter eligibility for the third round of stimulus checks given economic data indicating that many middle- and high-income households are regaining their economic foothold. But it is not likely to become a popular feature among taxpayers as one new poll from Monmouth found that a majority of respondents view $ 1,400 checks positively and see the money as off-limits from congressional efforts to reduce payouts.

“I hear, ‘let’s get money for those who need it,’ but there is no one in DC who could identify these families,” said Claudia Sahm, an economist who has worked for the Federal Reserve and Washington Center for Equitable Growth. “We are still a place where everything will help.”

Troubles continue to be widespread, although families with lower incomes have been more likely to experience income and job losses due to the pandemic. More than 1 in 3 adults said they had difficulty paying their bills in the last week of January, and more than 4 in 10 adults living with children said the same, an analysis from the Center for Budget and Policies and Priorities.

Restriction of upper-income households has pulled bipartisan support, with Democratic Senator Joe Manchin of West Virginia and Republican Senator Susan Collins of Maine working to block “upper-income citizens” from the next round of stimulus checks. It is noteworthy, however, that their plan did not define “upper income.” The measure would ensure that “the struggling families who need it most” would receive checks, Collins had said.


The bite pushes on with a stimulus plan

01:40

The new agreement will reduce the number of Americans who would have been eligible for payments under the version of the bill passed by Parliament on Saturday. The House bill also phased out payments for individuals earning more than $ 75,000 and couples earning more than $ 150,000, but the payments were limited to incomes of $ 100,000 and $ 200,000, respectively.

“Pain pockets”

At a virtual event hosted by the New York Times last month, Treasury Secretary Janet Yellen spoke for Mr. Bite stimulus plan and pushed back towards the idea of ‚Äč‚Äčlimiting stimulus control to fewer households.

“The truth is, there are pockets of pain that go beyond what can be achieved in the very targeted ways,” Yellen said.

Yellen has previously claimed that some government statistics do not accurately reflect the economic reality of millions of American households during the pandemic.

“We have an unemployment rate that, if measured correctly in some sense, is really close to 10%,” Yellen told CNBC earlier this year. “In addition to the 9 million unemployed, we have 4 million who have dropped out of the workforce, another 2 million who have experienced reduced working hours.”

Data suggests congestion remains high across the nation, nearly a year since the pandemic shut down the economy. People who lost their jobs during the pandemic were 2.6 times more likely to say they burned through their savings, according to a examination from the Financial Health Network, a nonprofit organization that focuses on financial health and literacy.

Concerns about food and housing insecurity are particularly high among colored families. For example, nearly 1 in 4 black and Hispanic survey respondents said they have been concerned about paying their rent or mortgage since the pandemic started, compared with 1 in 7 white respondents, the survey showed.

Do stimulus checks help the economy?

The US economy continues to struggle with more than usual layoffs and other setbacks. Approximately 730,000 people fapplied for unemployment benefits in the week ending February 20, a fall of 111,000 from the previous week, but still higher than before the pandemic. New economic data released on February 17 indicates that the second stimulus check is working to boost the economy, where retail sales jumped 5.3% in January, or five times higher than expected.

“These big gains in big-ticket estimates suggest that the $ 900 billion fiscal stimulus passed late last year is working as intended – with most Americans receiving $ 600-per-person stimulus checks. early in the month, while monthly unemployment insurance payments increased, “noted Michael Pearce, senior U.S. economist at Capital Economics, in a report.


Advice on tax returns for 2020 and stimulus checks …

05:53

“The economy remains weak, the job recovery has lost momentum and there are almost 10 million fewer jobs than in February 2020,” the Center for Budget and Political Priorities said in a February report. It added that millions should be helped by Mr. Biden’s suggested stimulus package.

Here’s what the experts say about the next stimulus check and who may be eligible.

Why are income limits a problem?

The first two government stimulus checks – $ 1,200 for the first round and $ 600 for the second round – also set income thresholds that made higher-income households unable to receive payments. In both previous rounds, singles earning up to $ 75,000 and married couples earning up to $ 150,000 received the full payments.

People with higher incomes received smaller payments as their income increased until the payments were cut off completely for higher income families. In the first round, the phasing out was $ 99,000 for singles and $ 198,000 for married couples.

In the second stimulus round, the phasing out of $ 600 checks was slightly lower – $ 87,000 per year per. single person and $ 174,000 per. couple. But it was a function of the smaller size of the check, as the law reduced both checks by 5% for every $ 100 earned above the income limits for full payments.

Recent economic research indicates that finances have stabilized for many middle- and higher-income families who have managed to work from home during coronavirus pandemic. This raises debate among legislators and experts as to whether direct support should be targeted at lower-income households who are more likely to feel the sustained economic impact of COVID-19 and its proliferation.


How the United States can pay for Biden’s relief plan

10:44

Households earning less than $ 78,000 a year quickly spent their second stimulus check after receiving them in January, while those with incomes above that level threw most of the money away, according to research from Opportunity Insights Economic Tracker, a nonprofit group led by Harvard economics professor Raj Chetty.

“Since mid-June, the recession in jobs for higher-income households is over – employment has been like before the pandemic” because their jobs can be done remotely, “Michael Stepner, an economist with Opportunity Insights, told CBS MoneyWatch.

Are there new income limits for getting a check?

Congress is still negotiating the bill with the Senate set to take up Sir. Biden’s $ 1.9 trillion bill for coronavirus relief as early as Wednesday. Since the bill is not expected to attract many, or even any, Republican votes, all Democrats will have to support the bill in order for it to be passed, giving moderate Democrats like Manchin the influence to make demands on the president and Senate leadership.

That explains why Mr Biden would be willing to lower the income phasing out. But because the Senate’s version of the bill is likely to differ from the House version, which was passed last week, the legislation will have to go back to Parliament for another vote.

What do the experts say?

Some lawmakers have pushed back toward limiting payouts to a smaller group of households, such as Senator Bernie Sanders, an independent from Vermont.

“It’s absurd that some Democrats think we should tell a worker who earns $ 52,000 a year that they are ‘too rich’ and can not get the full benefit of the $ 2,000 we promised,” he wrote last month. on Twitter.

The number of adults experiencing financial difficulties in January was slightly changed compared to December, despite the rollout of the second round of stimulus checks, according to to Morning Consult economist John Leer. Most of the struggles were experienced by people earning less than $ 50,000 in annual income, he said.

A third round of $ 1,400 checks would allow 22.6 million adults to pay their expenses for more than four months without going into debt or consuming any savings they still have, his analysis found.


The COVID-19 pandemic is straining jobs

11:37

“Low-income households and parents were the most desperate to receive their second stimulus check and are the ones most likely to need additional stimulus in the future,” Leer wrote in his analysis. “According to a survey conducted in early February, Americans with annual household incomes below $ 50,000 already spent about 67% of the money they received.”

By comparison, households earning more than $ 100,000 spent about 50% of their stimulus checks, his analysis showed.

When will I receive a $ 1,400 check?

It is possible that checks could arrive as early as mid-late March if the bill is passed by Congress and provided the relief package directs another round of direct payments to households, analysts say.

Meanwhile, Democratic lawmakers have said they want to pass a new emergency law before the current $ 300 in weekly extra unemployment benefits expire on March 14.

Once the Emergency Aid Act is enacted, it must be signed by Mr. Biden. The IRS would then direct stimulus checks to eligible households. Based on previous payment plans, checks could arrive via direct deposit within a week of Mr. Biden signed the bill.

However, people who do not have bank accounts or payment information registered with the IRS will likely have to wait longer for paper checks or prepaid debit cards to arrive by mail.

With reporting from the Associated Press.

Leave a Reply

Your email address will not be published.