New stimulus controls of $ 1,400 can be reached for millions of Americans now that the House of Representatives has passed the latest coronavirus relief bill.
The fate of these payments is now in the hands of the Senate, which should begin considering proposed legislation this week.
The terms required direct payments of $ 1,400 per person and per dependent.
Payments would be based on the same income thresholds as the first two stimulus checks. Individuals with adjusted gross incomes of up to $ 75,000, heads of households up to $ 112,500, and married couples who jointly file up to $ 150,000 would receive full payments.
But controls would be phased out for those with incomes above those levels. This time, they would have a limit for people earning $ 100,000, heads of households with $ 150,000, and married couples with $ 200,000.
Learn more about Invest in You:
Lost jobs, no daycare: A year after the pandemic, women are not well
The IRS obtained 35 million tax returns in one week while Americans were vying to file
Smaller businesses that receive additional PPP help. What you need to know before submitting your application
The coronavirus stimulus package is making its way to the House and Senate under budget conciliation. This process will likely prevent major alterations to the plan, although final numbers may be subject to change.
“There will be setbacks and efforts to reduce the size of the package,” Bill Hoagland, senior vice president of the Center for Bipartisan Policies, said of the upcoming Senate negotiations.
Republicans are expected to have problems with total spending of $ 1.9 trillion, particularly with regard to 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).
Because the $ 1,400 stimulus checks are one-time payments, they are unlikely to become a restricted point in negotiations, Hoagland said.
$ 1,400 payment schedule
The legislation is expected to become final in mid-March, when the federal unemployment benefit expires.
As with the first two stimulus checks, most payments will likely be sent by direct deposit to those who already have bank information registered with the IRS. According to the latest $ 600 checks, that money could begin to arrive two weeks after the legislation ends, according to Garrett Watson, a senior policy analyst at the Tax Foundation.
All other direct payments will be made by mail, either as debit cards or checks. These payments may take longer to arrive, potentially in April and May, Watson said.
One of the reasons payments may face delays this time around is the fact that the IRS will be in the middle of the fiscal season when they come out, he said.
However, experience with previous payments could help the process unfold more smoothly.
“The good news is that there’s a little more infrastructure and a more formalized process to do that than this time last year, because they’ve been through it twice,” Watson said.
This time, the checks should be based on the 2019 or 2020 returns.
The IRS has said it had sent all “legally permitted” first and second stimulus checks and is now focusing on the tax filing season.
The tax agency sent more than $ 160 million in stimulus checks worth $ 1,200 totaling more than $ 270 billion. It has also sent more than 147 million direct payments of $ 600 for a total of more than $ 142 billion.
It should be noted that people who are eligible but have not received these previous payments can claim the money through a recovery bonus credit on their tax returns.