Who is eligible for a $1,400 incentive payment under the House Bill? – Community News
Stimulus Check

Who is eligible for a $1,400 incentive payment under the House Bill?

The version of the US bailout plan passed by the Senate changes eligibility for the $1,400 stimulus payments. you can find more information about the changes here.

House Democrats approved the US $1.9 trillion bailout early Saturday morning, which includes provision for a third stimulus check worth up to $1,400 for taxpayers and each of their families.

Individuals earning adjusted gross income (AGI) up to $75,000 (and married couples earning up to $150,000) will receive $1,400 each, plus $1,400 for each dependent. That means an eligible family of four will receive $5,600.

Do not miss: The best credit cards for building credit

After these income limits, the benefits are phased out. Individuals earning more than $100,000 a year and couples earning more than $200,000 will not receive a check.

Unlike the previous two payments, adult dependents are eligible for this round. An earlier report from the American Enterprise Institute estimates that as many as 26 million more people — mostly college students, disabled adults and older Americans — will now be eligible for a payment. The check could arrive as early as next month.

The distributions are based on 2019 or 2020 income. That means taxpayers will want to file their taxes before the bill is passed if that would get them a bigger incentive payment.

Incentive money is often spent on rent and other necessities

While many workers have been delayed in receiving the unemployment insurance they are entitled to, incentive checks, which are paid out by the Internal Revenue Service rather than state governments, can help them stay on top of their bills.

Some critics have argued that stricter income limits should be introduced for incentive payments so that they go only to the most deprived. While some recipients have been able to save their checks, research has shown that many people spent their previous checks on rent, food, and other essential bills. In January, as $600 checks landed in bank accounts, personal spending rose 2.4%, data from the U.S. Bureau of Economic Analysis (BEA) shows.

Democratic leaders say the $1,400 payments meet President Joe Biden’s promise of $2,000 checks combined with the $600 payments sent in January. But some progressive critics say the government should send a full payment of $2,000 in addition to January’s.

The bill now goes to the Senate. Democrats hope Biden gets it signed by March 14, when many federal unemployment provisions expire.

Do not miss: Americans’ personal income and savings rate skyrocketed in January thanks to stimulus measures

Checking out: The Best Credit-Building Credit Cards of 2021