The U.S. Senate on Saturday approved President Biden’s $ 1.9 trillion coronavirus relief package, leading a third round of stimulus checks on most Americans. This raises questions about when checks can land in millions of bank accounts, especially for those dealing with loss of employment or income.
The bill will return to the U.S. House of Representatives this week for final approval, as the Senate and House versions of the assistance bill present some differences and will then be addressed to Mr. Biden for his signature. Once the bill has become law, the IRS could begin delivering checks in a matter of days to a week, depending on the time period of the previous round of checks, possibly already on the weekend. of March 13th.
“Next weekend, a couple earning less than $ 160,000 could deposit $ 2,800 into their checking account,” said Chris Krueger of Cowen & Co. in an analyst note before the Senate passed the bill, which he hoped would happen this past weekend. .
The bills passed in the Senate were announced by experts in the fight against poverty and unemployment, who said the $ 1,400 checks, as well as other provisions, such as an extension of the extra aid for $ 300 a week work for millions of unemployed people and expanding the tax credit for low-income families will help families pay their bills and lift children out of poverty. Almost half of Americans are he still experiences financial pain a year after the pandemic, it shut down the economy and sparked mass layoffs, according to the Pew Research Center.
“Working families will get $ 1,400 per person from a third stimulus control, in addition to benefiting from a $ 3,000 tax credit per child,” said Andrew Stettner, an unemployment expert at the Century Foundation . “This is real help that can help reverse the unprecedented economic inequalities exposed and exacerbated by the pandemic.”
Stettner added, “The federal response to COVID-19 has already averted the poverty of millions of Americans, and this package is ready to continue this critical task.”
Applause and encouragement, but with income limits
Saturday’s Senate bill passed with applause and applause from Democrats, who voted in favor of it between 50 and 49. As Republican Sen. Dan Sullivan left on Friday because of a family emergency, Vice President Kamala Harris did not need to visit the Capitol to break any ties.
However, fewer Americans are likely to receive checks in the third round of stimulus payments due to a change in the version of the bill in the Senate. Biden and moderate Democratic senators reached an agreement that limits the number of households that meet the $ 1,400 check requirements. The revised limits would make millions of Americans ineligible for payment.
The Senate bill directs direct payments of $ 1,400 to people earning up to $ 75,000, but cuts eligibility for single people earning more than $ 80,000. For couples filing a joint federal income tax return, the phasing out begins on those who earn $ 150,000 and end up on $ 160,000. Individuals who file their taxes as a head of household will receive the full $ 1,400 if they earn less than $ 112,500, while payments will be cut for those earning more than $ 120,000.
To see how much you can receive, you can use this Omni online calculator to determine if you meet the requirements and your potential payment.
“I wanted to keep the income threshold at previous levels” – $ 75,000 for singles and $ 150,000 for couples – Sen. Ron Wyden of Oregon said in a call to reporters last week before Saturday’s vote. “And we’ve got it on that front.”
He added: “I would have preferred what we had before [in the first two rounds of stimulus], but I don’t want to distract people from the basic accomplishment “of keeping the $ 75,000 and $ 150,000 income thresholds.
IRS deadline: checks within days of Biden’s signature
Democrats want the bill to be signed into law before Sunday, March 14, when the current $ 300 extra weekly aid is expected to expire. The Senate bill extends the $ 300 boost to September, in contrast to the House bill that would raise the increase to $ 400 a week through August.
In addition to the $ 1,400 checks, the bill would provide funding for small businesses, schools and cities and states; offer families with children a tax credit; and increase government spending on COVID-19 testing and contact tracking.
If the bill adheres to the law on March 12, the Friday before the extra unemployment benefit expires, the incentive checks could begin accessing bank accounts from a few days until the following week, depending on the timing of the IRS second round of stimulus checks in December.
Earlier this month, the IRS said it was watching the relief bill to prepare to distribute the next round of payments. “We’re looking closely at the hill,” said Ken Corbin, who is primarily responsible for taxpayer experience at the IRS, though he didn’t predict when the tax agency could distribute the checks.
The IRS relies on a taxpayer’s most recent tax return to determine how much they should receive and when they could receive it. That’s why some tax experts are urging taxpayers to do so submit your statements as soon as possible, especially if last year they had a major change in life, such as the birth of a child or the loss of a job or income in 2020.
Since the IRS officially began accepting tax returns on February 12 and is scheduled to close the filing window on its usual April 15 date for most Americans, the bill is could sign into law during the tax filing season.
If a taxpayer does not file their tax returns by 2020 before the bill becomes law, the agency is likely to rely on their 2019 tax return to calculate the payment of their check. stimulus and that the 2019 declaration does not reflect the loss of income during last year’s economic crisis or a new child, for example. In this case, a taxpayer may not receive as much incentive money as he or she is entitled to.
These are the income limits for checks
A person’s income is the main determinant of whether they will get a check as well as the amount of the payment.
Payments would amount to $ 1,400 for a single person or $ 2,800 for a married couple filing jointly. Only people earning up to $ 75,000 would get the full payment, as would married couples with incomes of up to $ 150,000. Payments would decrease for income above these thresholds.
The Senate bill cuts single people with incomes above $ 80,000 and married couples earning more than $ 160,000. According to the first stimulus check, the limits were higher, with $ 100,000 for individuals and $ 200,000 for married couples.
Some lawmakers have argued that controls should target lower-income families, citing research that shows higher-income families are recovering from the economic impact of the pandemic. But other research indicates widespread financial pain across the country, with ranks of adults experiencing financial hardship last month little changed since December, according to economist John Leer of Morning Consult.
A third round of $ 1,400 checks would allow nearly 23 million adults to pay their expenses for more than four months without collecting more debt or eating up their savings, the analysis found.
“This third stimulus control is absolutely vital,” Credit Karma CEO Colleen McCreary told CBS MoneyWatch. “I don’t see a world where people have their financial base with no extra money to stimulate.”