The Senate has now adopted a version of Biden’s $ 1.9 trillion COVID relief plan, which includes a third round of stimulus checks for Americans.
WASHINGTON – Since January, Americans have been anxiously awaiting the $ 1,400 stimulus checks that President Joe Biden announced as part of his $ 1.9 trillion. COVID relief plan. The House first adopted its version of “American rescue plan” on February 27th. Senate has now adopted another version of the bill, but both contain the direct payments. Now Parliament must take up the bill again before it is signed into law.
In both versions of the bill, individual tax collectors earning up to $ 75,000 a year will receive $ 1,400. Couples earning up to $ 150,000 will receive $ 2,800. $ 1,400 will also be added for each relative in the household.
In the House version adopted, the money paid out phases to zero at $ 100,000 income for individuals and $ 200,000 for couples. But in the Senate’s version, it phased out to $ 80,000 and $ 160,000, respectively.
Because of these changes and other changes in the Senate’s version of the bill, the plan goes back to Parliament. Representatives must vote on the Senate version, otherwise the two chambers can hold a conference to find a middle ground.
Approximately 8 million fewer households will receive a check under the Senate bill compared to what Parliament passed, according to an analysis by Tax Policy Center.
When is the third stimulus check sent?
Democrats and Biden want the COVID-19 relief plan approved by Sunday, March 14th. This is when extra unemployment benefits and other pandemic benefits expire. House Majority Leader Steny Hoyer said the House will vote Tuesday on the bill. So it looks like the Democrats should meet the March 14 deadline.
During the first round of stimulus checks in April 2020, it took about two weeks for the federal government to start distributing the money. It took about a week for the second round of checks, worth $ 600, in early January.
If the IRS is able to keep up with previous timelines, Americans can start receiving stimulus checks from late March to early April. For example, if the stimulus package is signed into law before March 14, based on previous relief plans, the first direct payments may go out in the week of March 22.
Another possible complicating factor is that this round of stimulus checks is likely to go out while the IRS deals with tax returns.
CALCULATOR: Here is a tool from Omni Calculator which can help you determine how much you can receive
Biden’s plan called for $ 1,400 checks for most Americans, which on top of the $ 600 given in the latest COVID-19 bill would bring the total amount up to the $ 2,000 that Biden has called for.
But Biden did not make that differentiation at first. Biden said on January 4 during the campaign for Democrats Jon Ossoff and Raphael Warnock ahead of Georgia’s Senate election, “their election will put an end to the blockade in Washington of the $ 2,000 stimulus check. The money that will go out the door right away.”
The House bill extended federal unemployment benefits until Aug. 29, increasing that benefit to $ 400 a week. It’s on top of what the beneficiaries get through their state unemployment insurance program.
The Senate bill would extend the enhanced unemployment benefits to Sept. 6 to $ 300 a week. Also, the first $ 10,200 of benefits would not be taxable. The provision applies to households with incomes below $ 150,000.
Senate lawmakers, who advise the Senate on its rules and procedures but have no formal power, ruled last month that a provision to gradually raise the federal minimum wage to $ 15 an hour should be removed. While it was within the power of the Senate to change the rules to allow its inclusion, it did not.
By a vote of 58-42, senators voted against an amendment by Senator Bernie Sanders, I-Vt., To reintroduce the minimum wage into the bill.
The House version included the minimum wage increase of $ 15. Parliament will have to decide whether to accept the Senate version, which does not have it.
While some $ 600 second round stimulus check payments may still be in the mail, the IRS said it has issued them all.
So if Americans did not get a payment or did not get their full amount, they may be eligible to claim one Recovery discount credit when they file a tax return for 2020.
Eligibility for the credit will be based on the information about the 2020 tax year, while payments for financial consequences were based on 2019 (or in some cases 2018) tax information.
As a reminder, the first round of payments was worth up to $ 1,200 per round. eligible adult and $ 500 per. relatives. The other was worth up to $ 600 for each eligible household member. Those who received a larger financial impact payment than they should should not be penalized. The IRS began accepting tax returns for 2020 on February 12th.
The Associated Press contributed to this report.