Congress is selling $ 1,400 value of stimulus checks. This is how shortly the cash may arrive
Now that the House of Representatives has passed the latest coronavirus relief law, new $ 1,400 worth of stimulus checks for millions of Americans could be on the way.
The fate of those payments is now in the hands of the Senate, which is due to begin examining the proposed legislation this week.
The terms provide for direct payments of $ 1,400 per person per dependent.
The payments would be based on the same income thresholds as the first two stimulus tests. Individuals with Adjusted Gross Income up to $ 75,000, Heads of Households up to $ 112,500, and married couples filing together up to $ 150,000 would receive full payments.
But the controls would be phased out for those with incomes above these levels. This time around, they would be limited to individuals earning $ 100,000, heads of households earning $ 150,000, and married couples earning $ 200,000.
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The coronavirus stimulus package is working its way through a budget vote by the House and the Senate. This process is likely to prevent major changes to the plan, although the final numbers may change.
“There will be pushback and efforts to reduce the size of the package,” said Bill Hoagland, senior vice president at the Bipartisan Policy Center, of the upcoming Senate negotiations.
Republicans are expected to struggle with the $ 1.9 trillion total spending, particularly with state funding, multi-employer pensions, and relief not directly related to the Covid-19 pandemic he said. (In fact, the House version went from 219 to 210 without any Republican support.)
Since the $ 1,400 stimulus checks are one-time payments, they shouldn’t become a sticking point in negotiations, Hoagland said.
Estimated payment schedule of $ 1,400
The legislation is expected to be final by mid-March when the federal government’s improved unemployment benefits expire.
As with the first two stimulus checks, the majority of payments will likely be sent by direct deposit to those whose banking details are already on file with the IRS. Based on the last $ 600 checks, that money could arrive within two weeks of the legislation being finalized, according to Garrett Watson, a senior policy analyst at the Tax Foundation.
The remainder of the direct payments are made by mail either as a debit card or a check. Those payments could take longer, possibly through April and May, Watson said.
One reason payments could be delayed this time around is the fact that the IRS will be in the middle of tax season when they run out, he said.
However, experience with previous payments could help make the process run more smoothly.
“The good news is that there is a little more infrastructure and a formalized process for doing this than there was at this time last year because they went through it twice,” said Watson.
This time the reviews are based on either 2019 or 2020 returns.
The IRS has announced that it has sent out all of the “legally permissible” first and second stimulus checks and is now focusing on the tax return.
The tax agency sent more than $ 160 million in economic checks valued at more than $ 270 billion. It has also sent more than $ 147 million, $ 600 in direct payments totaling more than $ 142 billion.
It should be noted that individuals who are eligible but have not received these prior payments will be able to claim the money through a refund credit on their tax returns.