3rd Stimulus and when will you get it

A third round of stimulus payments is expected to be on the way later this month.

The payments are included in a sweeping $1.9 trillion COVID relief package that was approved by the Senate on Saturday and could be signed by President Joe Biden soon after the House takes a final vote, now expected to be on Wednesday.

Roughly 90% of American households will be eligible, according to an estimate from the Penn Wharton Budget Model.

Here’s what you need to know:

How much will you get?

The payments are worth up to $1,400 per person, including dependents. So a couple with two children could receive up to $5,600. Unlike prior rounds, families will now receive the additional money for adult dependents over the age of 17.

The full amount goes to individuals earning less than $75,000 of adjusted gross income, heads of households (like single parents) earning less than $112,500 and married couples earning less than $150,000. But then the payments gradually phase out as income goes up.

Do you make too much money to be eligible?

Individuals who earn at least $80,000 a year of adjusted gross income, heads of households who earn at least $120,000 and married couples who earn at least $160,000 will be completely cut off from the third round of stimulus payments — regardless of how many children they have.

On what year are the income limits based?

The income thresholds will be based on a taxpayer’s most recent return. If they’ve already filed a 2020 return by the time the payment is sent, the IRS will base eligibility on their 2020 adjusted gross income. If not, it will be based on the 2019 return.

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When can you expect the money?

People could start seeing the payments hit their bank accounts within days of Biden signing the bill — which is expected to happen soon after the House votes on Wednesday on the $1.9 trillion COVID relief package.

For the previous pandemic stimulus bill, the IRS started sending out the second round of payments three days after then-President Donald Trump signed that legislation in late December. But it’s possible that tax filing season, which is underway, could slow down the process this time.

The payments do not all go out at once. Those whose bank information is on file with the IRS would likely get the money first, because it would be directly deposited into their accounts. Others may receive paper checks or prepaid debit cards in the mail.

You got the last stimulus check. Will you get this one?

Not necessarily. While the same people who received the full amounts in the previous two rounds of stimulus payments will likely get the full amount this time, the checks will phase out faster now — cutting off people at a lower income level.

The first round, which was worth up to $1,200, excluded individuals who earned at least $99,000, head of household filers with one child who earned more than $136,500 and married couples without children earning more than $198,000 — but families earning a little more were still eligible if they had children. About 160 million payments were delivered, with 94% of families receiving the money.

The second round, which was worth up to $600, also phased out a little faster because the full amount was smaller. It phased out entirely at $87,000 for single filers without children and $174,000 for those married filing jointly without children. Again, those earning a little more were still eligible if they had children. About 158 million payments went out, with 92% of families receiving them.

The payments have been based on a taxpayer’s most recent tax return. So those who have filed new returns since last March could fall into or out of eligibility if their incomes changed.

Who else isn’t eligible?

Undocumented immigrants who don’t have Social Security numbers remain ineligible for the payments. But their spouses and children are eligible as long as they have Social Security numbers. They were excluded from the first round.

Will you owe back some money to the IRS if you earned more in 2020?

No. If your 2019 income was less than your pay in 2020 you will not owe back any money.

But if your income fell in 2020, filing your tax return now — before the payments go out — may mean you’ll get a bigger check.

What if you never got the last payment but believe you’re eligible?

Most people receive the payments automatically, but there are many who missed out — for a variety of reasons. An estimated 8 million eligible people didn’t get the first round of payments that were delivered last year.

Many of these people have very low incomes and are not normally required to file tax returns. Last year, the IRS set up an online portal where they could register for the money. It’s not yet clear whether the agency will open up the portal again for the third round of payments.

People who have moved or changed bank accounts since the last time they filed tax returns may have also missed out.

Those who were due money during the first two rounds of payments and did not receive it can claim it as a tax credit, known as the Recovery Rebate Credit, on their 2020 tax returns.

[Covid-19] Stimulus checks will be in your hand within 3 weeks!

Congress passed the $2 Trillion Stimulus bill that will help with the economic crisis caused by the Cornavirus pandemic.

What Does This Mean For You?

This means that single tax payers will receive $1,200 each and couples will receive $2,400. For each dependent taxpayers will receive an additional $500 for each qualifying child.

When Will You Receive The Money?

The checks and direct deposits are set to reach taxpayers within the next 3 weeks so keep your eyes open for your direct deposit or paper check to arrive. If you owe back child support you can expect to not receive a stimulus check. Those that are on social security are still eligible to get the cash though.

Will you get another check?

Although under the current bill, this is just a one time payment and no further checks are set to be disbursed. It is possible that there will be another bill passed later on, releasing more funds to the taxpayers. Everyone with a social security number is eligible to receive this relief funding as long as you were not claimed as a dependent on someone else’s tax return.

Didn’t file your 2019 tax return yet?

If you did not file your 2019 tax return yet, then the irs will look at your 2018 tax return to determine the amount you are eligible to receive. Single tax payers who made less than $75,000 and couples who made less than $150,000 will receive the full amount. If your total gross income is above the threshold amount then your stimulus payment would go down $5 for every $100.

Americans Not Likely To See Stimulus Check Until At least May 2020

Legislation to provide direct financial checks to many Americans, expand unemployment insurance, offer health-care providers additional resources

Lawmakers struck a $2 trillion stimulus deal early Wednesday that includes sending checks directly to individuals amid the coronavirus crisis — but it will likely take until at least May before the money goes out. Under the plan as it was being negotiated, single Americans would receive $1,200, married couples would get $2,400, and parents would see $500 for each child under age 17.

Americans most likely will not see any sign of the Coronavirus ( Covid-19 ) check until at least May.

However, the payments would start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples.About 90% of Americans would be eligible to receive full or partial payments, according to estimates by the Tax Policy Center. Lawmakers set aside $250 billion for the so-called recovery rebates.

Qualifying income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 returns. (Treasury Secretary Steven Mnuchin earlier this month delayed the filing deadline until July 15.) There are provisions in the bill to include those who don’t earn enough to file returns, but some people may be missed, said Howard Gleckman, a senior fellow at the center.

Under the legislation being negotiated, lower- and middle-income Americans would receive just over two-thirds of the benefits, Gleckman said. An earlier version of the bill would have given lower-income households less or no assistance.

As for Mnuchin’s recent promise to send the checks in two weeks, that’s not likely to happen.

The Internal Revenue Service has sent out economic stimulus checks before, and although those plans were slightly different, they can offer some insight into how long the process might take.

“Certainly from what we’ve seen in the past, it’s taken a pretty significant amount of time to get checks out after a policy is put in place,” said Erica York, an economist at the Tax Foundation. In 2001, it took six weeks for the IRS to start sending out rebate checks authorized by President George W. Bush’s tax cut. Then in 2008, amid the Great Recession, it took three months for the checks to start going out after the law was signed by Bush. In that case, Americans were required to file their tax return first, in order to get the check. Once they filed their return, it took between eight and 12 weeks to see the money.

Those that had authorized a direct deposit into their bank account likely received their money faster. Those deposits were made over a three-week period in 2008, while paper checks were sent through the mail over a 10-week period, York said.

It’s likely that Americans would receive the stimulus payments faster this time around because more of them file electronically and provide the IRS with their bank information, Gleckman said. Some 88% of individual returns were filed electronically in 2018, compared to 58% in 2008.

But there are other factors that may slow the process. Even absent the coronavirus challenges, the agency is working with a smaller budget and less staff than it had in 2010. Now, because of the coronavirus, the agency has shut down its in-person taxpayer assistance centers located across the country at a time when people are sure to have questions about the emergency checks and other changes.

Treasury announced last week that it is pushing back the tax return deadline to July 15. Additionally, Congress created a new tax credit designed to refund businesses that are offering their employees coronavirus-related paid leave.

“It’s just a recipe for confusion,” said Nina Olson, who served as the IRS’s National Taxpayer Advocate from 2001 to 2019.

“There can be a lot of complexity involved in something as simple as sending a checkout,” Olson added.

First, the IRS will have to calculate each person’s payment amount. Then, it will need the correct direct deposit information or mailing addresses. To get the money to people who don’t usually file tax returns, it might have to request that information from the Social Security Administration or Veterans Affairs. In 2008, those people were required to file a return anyway in order to get their rebates.

Meanwhile, the IRS will inevitably be fielding calls from Americans concerned about when their check will arrive and whether they took all the necessary steps to receive the money. In 2001, the agency sent out letters to taxpayers telling them they didn’t have to do anything in order to receive their check. But instead of staving off calls, the notice had the reverse effect. It resulted in the agency’s first 1 million-call day, Olson said.

Later in 2008, after the economic stimulus checks were sent out, Olson testified before Congress, telling lawmakers that they should fund a new unit within the agency that would be dedicated to facilitating new and emerging initiatives. She argued that it would free up other employees to focus on improving the existing systems and executing the day-to-day work of the agency — but that never happened.

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