what we know about how soon they could arrive? – Community News
Stimulus Check

what we know about how soon they could arrive?

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As Congress works to finalize a deal on a new coronavirus emergency law, it could mean new stimulus for millions of Americans.

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

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

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The payments would be based on the same income thresholds as the first two checks. Individuals with up to $75,000 in adjusted gross income, householders with up to $112,500, and married couples filing jointly with up to $150,000 would receive full payments.

But the checks would be phased out for those with incomes above those levels. This time, they would be capped for individuals making $100,000, householders at $150,000, and married couples at $200,000.

The coronavirus stimulus package is working its way through the House and Senate in the context of budget alignment. That process will prevent major changes to the plan, although the final numbers could change.

Some lawmakers have pushed for lowering the revenue phase-out to $50,000 or $60,000 to better reach those who need the money.

“These details are not final and could still be tweaked,” wrote Ed Mills, Washington policy analyst at Raymond James, last week, “but have so far met little resistance from moderate Democrats who want a greater degree of targeting for higher incomes. were looking for payment recipients.”

Expected payment term of $1,400

The legislation is expected to be finalized around early to mid-March.

At that point, the IRS will be well into tax filing season, which can make it harder for the IRS to process both payments and incoming returns, said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.

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

Still, the IRS was able to pay out most of those $1,200 payments within a few months.

“They’ve done an amazing job, far better than we ever thought they would, especially that first round of economic impact payments,” Gleckman said.

This time, the Democrats have proposed to base the controls on 2019 or 2020 returns.

That could be 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 an entire year until next tax filing season to get the rest of what you owe, he said. he.

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

As with the first two stimulus checks, the bulk of payments will likely be sent via direct deposit to those who have already registered their banking information with the IRS. Based on previous checks, that money could come in within days of the legislation being finalized.

The rest of the direct payments go through the post, either as a debit card or a cheque. Those payments can take several weeks.

“The good news is there’s a little more infrastructure and a more formalized process to do this than at this time last year because they’ve been through it twice,” said Garrett Watson, senior policy analyst at the Tax Foundation.

One wildcard that could affect the IRS’s workload is a proposal to extend the child tax credit. If passed along with the current bill, the IRS can send families eligible for monthly payments of up to $300 per child.

On Tuesday, the IRS said it had sent out all “legally allowed” first and second stimulus checks and is now focusing on tax filing season.

The IRS sent more than 160 million $1,200 stimulus checks, totaling more than $270 billion. It has also sent more than $147 million in direct payments, for a total of more than $142 billion.