what we know about how fast they could arrive
what we know about how fast they could arrive

what we know about how fast they could arrive

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While Congress is working to agree on a new bill to alleviate coronavirus, it could mean new stimulation checks for millions of Americans.

New direct payments of $ 1,400 are among the help expected to be included in the package. The proposal also includes other measures to help Americans get through the ongoing pandemic, such as more enhanced federal unemployment benefits and raising the federal minimum wage to $ 15 an hour.

Currently, the terms require direct payments of $ 1,400 per. person or $ 2,800 per. married couple plus $ 1,400 for both children and adults.

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Payments would be based on the same income thresholds as the first two checks. Individuals with up to $ 75,000 in adjusted gross income, household heads with up to $ 112,500, and married couples who jointly file up to $ 150,000 would receive full payment.

But control would be phased out for those with incomes above these levels. This time, they would be limited to people earning $ 100,000, household heads with $ 150,000 and married couples with $ 200,000.

The Corona Stimulus Package is working its way through Parliament and the Senate during budget voting. That process will prevent major changes to the plan, although the final figures could change.

Some lawmakers have been pushing to lower the income phasing out to $ 50,000 or $ 60,000 to better target those who need the money.

“These details are not yet final and may see further adjustments,” wrote Ed Mills, Washington policy analyst at Raymond James, last week, “but has so far received some setbacks from moderate Democrats who sought a greater degree of targeting for it. upper income. payees. “

Future payment timeline of $ 1,400

The legislation is expected to become final in early mid-March.

By then, the IRS will be deep into the tax filing season, which could make it more challenging for the IRS to process both payments and incoming returns, said Howard Gleckman, senior fellow at the Urban-Brookings Tax Policy Center.

Last year, the first $ 1,200 stimulus checks were also approved during the tax season. Eventually, the tax return deadline was extended to July 15 from April 15.

Still, the IRS was able to get the bulk of these $ 1,200 payments out within a few months.

“They did an amazing job, much better than we ever imagined they would do, and they especially got the first round of financial consequences,” Gleckman said.

This time, the Democrats have proposed that the checks should be based on either 2019 or 2020 returns.

It could create an incentive to file early, especially if your income fell in 2020, which could increase the size of your check, Gleckman said.

If the IRS uses your 2019 information instead and you qualify for more money based on your 2020 income, you may have to wait a full year for the next tax filing season to get the rest of what you need, he said.

Alternatively, if your income was lower in 2019 than in 2020, you could get a bigger check if the IRS uses last year’s application.

As with the first two stimulus checks, the majority of payments are likely to be sent via direct deposit to those who already have their banking information registered with the IRS. Based on previous checks, this money could start arriving within a few days after the legislation was finalized.

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