Third Stimulus Check: How soon will these $ 1,400 payments arrive, and who is eligible?
Third Stimulus Check: How soon will these $ 1,400 payments arrive, and who is eligible?

Third Stimulus Check: How soon will these $ 1,400 payments arrive, and who is eligible?

Americans are probably just days from receiving their third – and largest – coronavirus stimulus check yet, after President Joe Biden on Thursday officially signed the massive $ 1.9 trillion US rescue plan into law.

The bill requires the Internal Revenue Service and the Treasury Department to immediately send $ 1,400 direct payments to every eligible U.S. adult. The Biden administration sees this as fulfilling its promise to send $ 2,000 total stimulus checks to households by 2021, combined with another $ 600 payment from earlier.

“This historic legislation is about rebuilding the backbone of this country and giving the people of this nation – workers, middle class people, people who built the country – a chance to fight,” Biden said in a speech from the Oval Office as he signed the bill. . “That’s what’s the essence of it.”

However, not everyone will see the high of an economic impact payment, as the third control has steeper cuts and stricter eligibility requirements than previous rounds. Some low- to moderate-income households, especially families, will inherit larger sums of money, while others will not receive much more at all.

Here’s everything you need to know about the payments, including who is eligible, how much you will receive, how quickly you can expect these payments and tax tricks as we approach the deadline for the 2021 application season.

$ 1,400 stimulus payments: Who is eligible and how much will you receive?

Eligible U.S. adults will see $ 1,400 per person. each person in their household, including adult relatives, such as University students.

It breaks away from previous rounds of economic impact payments, where relatives only qualified for a stimulus check if they were under 17 years old. The new inclusion means that 13.5 million more individuals will receive stimulus payments, according to an analysis of data from the Census Bureau.

Relatives have also not always been to such a high check as adult payments, with the first round of $ 1,200 stimulus checks awarding them only $ 500. However, the second round sent $ 600 payments to everyone who qualified.

Nevertheless, the eligibility criteria are significantly stricter than different rounds. A good rule of thumb: If you received a full stimulus payment last time (or at least were entitled to one if you are still waiting for a payment), you should receive the full amount of $ 1,400.

Individuals earning less than $ 75,000 in their adjusted gross income (AGI) and married files earning a total of $ 150,000 will be eligible for the full $ 1,400 or $ 2,800 payments, respectively. For example, a married couple earning $ 140,000 with a child and an adult breadwinner will receive $ 5,600- $ 1,400 multiplied by four.

The household leader must earn less than $ 112,500 annually to qualify for the full payment.

The IRS and the Treasury Department will use your most recently processed tax return to determine your eligibility for stimulus payment. For most, it is either income based on 2020 or 2019.

Thereafter, payments are phased out much earlier on the income scale and fall by $ 28 for every $ 100 above the income limit. Individuals earning $ 80,000 a year and married couples earning twice ($ 160,000) will not receive a check at all. In the previous $ 600 round, these payments decreased by $ 5 for every $ 100 above the income requirementwhich means they were eligible for partial payments worth $ 700 and $ 350, respectively.

People above the income limit will also not be able to collect a partial check by having relatives, unlike previous rounds. You must also have a social security number for each eligible person in your household to receive a check, according to the legal text.

As was the case with the previous two rounds, individuals who earned less than $ 12,400 in a given tax year and thus did not have to file a tax return may still be eligible for a payment. Around the time of the second stimulus check, the IRS opened up for one Non-files tool, where Americans could enter their bank account and income information to get a check. Odds are that the agency will most likely reopen that portal.

How fast will the checks arrive?

The bill allows the IRS and the Treasury until December 31, 2021, to distribute the third round of stimulus checks, but the odds of you waiting that long are low.

This is mainly because both agencies now have experience sending two financial impact payments, where they have apparently resolved many cracks and delays. The first time, the IRS and the Treasury took months to deliver these checks, a process that ended within two weeks the second time (even though it was explicitly required by the text of the $ 900 billion supplementary package).

The Biden administration previously promised to send checks to millions of Americans by the end of March. Hoping to speed up the process, Biden’s aides also said the president has no plans to attach his name or signature; instead, they will be signed by an official at the Bureau of Engraving and Printing.

“We are doing everything in our power to expedite payments and not delay them, which is why the president’s name will not appear on the note line in this round of stimulus checks,” White House Press Secretary Jen Psaki said during a March 9. briefing.

Checks will be submitted either through direct deposit or distributed by mail via a check or a debit card. Electronic debits will be much faster, while posted money will take much longer to hit your wallet.

What to do if your tax situation changed in 2020 compared to 2019

Maybe you had a child or saw your income drop in 2020, which means you are entitled to a higher amount than the IRS right now assumes. Maybe you have changed bank or moved within the last year. If this is you, you would like to file your 2020 tax return as soon as possible so that the IRS has the most accurate picture of your financial situation.

But it is safe to assume that IRS officials will have their work cut for them over the next few weeks. They may not be able to process your return when they start sending stimulus checks, which means you will receive less than you should.

While it will not be that fast, you will most likely be able to claim any missing stimulus payments when you file your 2021 tax in 2022 by claiming a recovery rebate credit. And even better, the text of the US rescue plan opens up the possibility of additional supplementary payments, which means that in the best of circumstances, you do not have to wait an entire year to claim your check.

Similar to the first and second stimulus check rounds, you will most likely also be able to enter your bank account information via IRS GetMyPayment Tool. Stay tuned for more information from the IRS in the coming weeks on how and when to complete them.

What to do if your income increased in 2020 compared to 2019

Undoubtedly, an entire separate camp of Americans saw their income increase in 2020 compared to 2019, meaning they would no longer be considered eligible for a stimulus check if they were to submit their return today.

You can still wait to submit your tax return and require a stimulus check. The IRS would not try to recover that payment, nor should it open you up to any fines or penalties, according to the current text of the bill. Economic impact payments are also not considered taxable income.

But beware: You will not risk incurring late fees by waiting so long to file your tax return by the April 15 deadline (or June 15 if you live in Texas or Oklahoma).

Bottom line

The stimulus package passes last year’s CARES law in overall sizemaking it the largest financial aid package in U.S. history with provisions that also include to increase unemployment benefits for unemployed Americansdisaster on and Child Tax Credit (CTC) for families and extension of housing assistance in the largest financial relief package in U.S. history that barely surpasses last year’s CARES Act.

Stay tuned for more details from the IRS on how it plans to deliver these payments at the height of Tax application season 2021.

Biden pointed in his first primetime speech on the one-year anniversary of the coronavirus outbreak declared a pandemic, on the bill and the extra optimism surrounding vaccinations as a major focal point after a year of extreme unrest, with the US death toll now rising 500,000.

“Finding light in the dark is a very American thing to do,” he said. “In fact, it may be the most American thing we do. And that’s what we’ve done.

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