The Senate on Saturday approved President Biden’s $ 1.9 trillion coronavirus relief package, targeting a third round of stimulus checks on most Americans. This raises questions about when checks can land on bank accounts, especially for those dealing with loss of employment or income.
The bill will return to the House early next 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 to his signature. Once the bill is passed, the IRS could begin delivering the checks in a matter of days to a week, depending on the deadline for the previous round of checks, potentially as early as the weekend of March 13. .
“Next weekend, a couple earning less than $ 160,000 could have deposited $ 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 weekend.
The spending bills 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 work aid $ 300 a week and an extension of the children’s tax credit 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 caused mass layoffs, according to new research from the Pew Research Center.
“Working families will get $ 1,400 per person for a third stimulus check, in addition to benefiting from a tax credit for children with musculature of $ 3,000 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.”
He 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 cheers
Senate approval of the bill on Saturday was met with applause and applause from Democrats, who voted in favor. As Republican Sen. Dan Sullivan left on Friday due to 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.
“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 Wednesday in a call to reporters ahead of the vote. “And we’ve got it on that front.”
He added, “I would have preferred what we had before, but I don’t want to distract people from the basic accomplishment” of keeping the $ 75,000 and $ 150,000 income thresholds.
Passage before March 14?
Democrats want the bill to be signed into law before March 14, when the current $ 300 extra weekly allowance is due 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.
IRS Chronology
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 they had a major life change, such as the birth of a child or the loss of a job or income last year.
Because the IRS officially began accepting tax returns on February 12 and will close the filing window on its usual April 15 date, the bill could become 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 tax check. stimulus and that the 2019 declaration does not reflect the loss of revenue 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.
Income limits
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 in excess of $ 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.”