House Democrats approved Saturday morning’s $ 1.9 trillion bailout plan, which includes a provision for a third stimulus control worth up to $ 1,400 for taxpayers and each of their dependents.
People who earn an adjusted gross income (AGI) of up to $ 75,000 (and married couples who earn up to $ 150,000) will receive $ 1,400 each, plus $ 1,400 for each dependent. That means a family of four eligible people will receive $ 5,600.
After these income thresholds, payments are cleared. People who earn an AGI above $ 100,000 a year and couples who earn more than $ 200,000 will not receive a check.
Unlike the previous two payments, dependent adults meet the requirements for this round. A previous report by the American Enterprise Institute estimates that up to 26 million more people, mostly college students, adults with disabilities and American seniors, will be eligible for a payment. The check could arrive as early as next month.
Payments are based on 2019 or 2020 income. This means taxpayers may want to file their taxes before the bill passes if this would allow them to get a bigger incentive.
Money to stimulate is often spent on rent and other necessities
Although many workers have been delayed in receiving the unemployment insurance they are entitled to, stimulus checks, which are paid by the Internal Revenue Service instead of state governments, can help them stay up to date on your bills.
Some critics have argued that stricter income limits should be set on stimulus payments, so that only those most in need are targeted. While some recipients have been able to keep their checks, research has shown that many people spend their previous checks on rent, food, and other essential bills. In January, when $ 600 checks reached bank accounts, personal spending rose 2.4 percent, according to data from the U.S. Bureau of Economic Analysis (BEA).
Democratic leaders say the $ 1,400 payments live up to President Joe Biden’s promise of $ 2,000 checks, along with the $ 600 payments sent in January. But some progressive critics say the government should send a full payment of $ 2,000 in addition to the January one.
The bill is now going to the Senate. Democrats expect Biden to sign it before March 14, when many federal unemployment provisions expire.
Do not miss it: The personal income and savings rate of Americans soared in January thanks to stimulus controls
Take a look at: The Best Credit Cards for Buildings of 2021