It is estimated that 85% of Americans will be eligible for payments as part of the $ 1.9 trillion COVID relief bill signed by President Joe Biden. The goal is to make millions of payments over the next few weeks.
The deadline coincides with the speed with which December payments came out, which began to be processed three days after then-President Donald Trump signed the bill.
But payments won’t come out all at once. Those who have bank information registered with the Internal Revenue Service will likely get the money first, as it will be deposited directly into their accounts. Others may receive paper checks or prepaid debit cards in the mail.
Money usually appears in bank accounts as outstanding or interim payments. Some banks have informed customers that the funds appearing this weekend will be available starting Wednesday.
Although the first batch of payments began processing Friday, more will be deployed in the “coming weeks,” a Treasury official said in a call with reporters Friday.
Direct deposits will come out first, but paper checks and debit cards will come out before the end of the month.
No action is needed for most people to receive the money. Social Security beneficiaries and those receiving Veterans Affairs benefits should also get the money automatically even if they do not file taxes.
People can start checking the status of their payments on Monday using the IRS’s Get My Payment online tool.
“If people don’t see any direct deposit in the next few days, there’s no reason to worry. These taxpayers will receive payments in later installments,” an IRS official said in the call.
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Who receives a payment?
The money is expected to reach 90% of households, according to an estimate from Penn Wharton’s budget model. Families will receive an additional $ 1,400 per dependent, so a couple with two children could receive up to $ 5,600. Unlike previous rounds, families will now receive the extra money for dependents over the age of 17.
The full amount goes to people earning less than $ 75,000 of adjusted gross income, heads of households (such as single parents) earning less than $ 112,500, and married couples earning less than $ 150,000. But then the payments will be eliminated as revenue increases.
This time, lawmakers have reduced the scope of payments so that not everyone who has received a previous check is sent to them now. It cuts people earning at least $ 80,000 a year in adjusted gross income, heads of households earning at least $ 120,000, and married couples earning at least $ 160,000, regardless of the number of children they have.
The first round of payments that came out last year was worth up to $ 1,200 and excluded people earning at least $ 99,000, those who had a head of household with a child earning more than $ 136,500, and married couples without children. who earned more than $ 198,000, but families earned a little more were still eligible if they had children. About 160 million payments were made and 94% of families received the money.
The second round, which was worth up to $ 600, disappeared a little faster because the total amount was less. It was completely eliminated at $ 87,000 for childless applicants and $ 174,000 for married people who filed jointly without children. Again, those who earned a little more were still eligible if they had children. About 158 million payments came out and 92% of families received them.
In what year are income limits based?
The new income thresholds will be based on a taxpayer’s most recent return. If you have already filed a return for 2020 when the payment is submitted and processed, the IRS will base your eligibility on your adjusted gross income for 2020. Otherwise, it will be based on the 2019 return or in the information presented through an online portal created last year for people who do not usually submit statements.
At this time, the IRS has no plans to reopen the portal. Instead, officials encourage people to file tax returns by 2020. People on low incomes can use the agency’s free file option.
If your 2019 income was less than your 2020 pay, you won’t owe any money. But if your income fell in 2020, filing your tax return now (before you finish your payments) can mean you get a bigger check.
Most people receive payments automatically, but many are lost, for various reasons. An estimated eight million eligible people did not get the first round of payments delivered last year.
Many of these people have very low incomes and are not usually required to file returns. Last year, the IRS created an online portal where they could register for money. It is unclear whether the agency will reopen the portal for the third round of payments.
People who have changed or changed bank account since the last time they filed returns may also have been lost.
Those who had collected money during the first two rounds of payments and did not receive them can claim it as a tax credit, known as a recovery bonus credit, in the 2020 returns.
The Associated Press contributed to this report.
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