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.

[Third Stimulus UPDATE] Biden fights to keep the $1400 Stimulus

Joe Biden, making his first official trip as president, said Monday that he was not interested in reducing the size of his $1.9 trillion coronavirus stimulus bill, which includes $1,400 direct payments to Americans.

“The vast majority of the serious people say bigger is better now, not spending less,” Biden said at a CNN town hall in Wisconsin, one of the states that backed Donald Trump in 2016 but flipped in 2020 to the Democrat.

Biden rejected a proposal by 10 Senate Republicans to reduce the size of the package by more than two-thirds, and is willing to enact the measure with only Democratic votes.

A study by S&P Global found that the $1.9 trillion package would restore the U.S. economy to pre-pandemic levels by the second quarter of this year while the Brookings Institution, a Washington research organization, said it would bring back the economy to pre-pandemic levels in the third quarter.

“There is consensus among economists, left, right snd center, that overwhelming consensus is in order to grow the economy, we cant spent too much,” Biden said. “Now is the time we should be spending. Now is the time to go big.”

– photo shows blank checks on an idle press at the Philadelphia Regional Financial Center, which disburses payments on behalf of federal agencies, in Philadelphia.AP Photo/Matt Rourke, File Matt Rourke AP

He spoke about his efforts in 2009 to negotiate a stimulus bill in response to the Great Recession and scaled back spending to attract Republican support. But the limited spending resulted in a more tepid recovery.

Biden acknowledged that small business owners had a legitimate concern with his proposal to raise the federal minimum wage to $15 an hour, but said it could be phased in very slowly as to not have a major impact on their bottom line. New Jersey will have a $15 an hour minimum wage in 2026 except for restaurant workers.

“It’s about doing it gradually,” Biden said “No one who works 40 hours a week should live in poverty.”

And he said that there was $60 billion in the stimulus bill earmarked to help small businesses get through the pandemic.

The legislation now is before the House Budget Committee, which will combine the different sections of the bill into a single measure expected to pass the House before the end of the month.

The stimulus bill includes $1,400 checks for individuals earning up to $75,000 and $2,800 for couples earning up to $150,000. The payments would end for individuals earning more than $100,000 and couples making more than $200,000.

The budget committee is involved because the Democratic-controlled Congress is considering the stimulus legislation under a procedure known as reconciliation, which will allow it to pass by a simple majority rather than need 60 votes to overcome a Senate filibuster.

That’s the same procedure used by Republicans when they controlled Congress in 2017 to cut taxes and fall just one vote short of repealing the Affordable Care Act over unanimous Democratic objections.

This time around, GOP lawmakers are the ones deriding the effort to approve legislation through reconciliation, on Monday introduced a resolution to delay passage of the latest stimulus bill.

“It would be irresponsible to pass trillions more in spending when Congress does not even have a thorough and accurate accounting of the trillions of dollars already approved,” said Rep. Jason Smith of Missouri, the top Republican on the House Budget Committee.

Still, strong majorities of Americans support the legislation even if congressional Republicans do not.

In a Quinnipiac University poll released earlier this month, 68% of Americans, including 37% of self-described Republicans, backed the stimulus package while only 24% opposed it. The $1,400 checks were favored by 78% to 18%, including 64% of Republicans.

“The vast majority of the American people like what they see in this package,” White House press secretary Jen Psaki said at her daily press briefing Monday. “And that should be an indication, or should be noted by members of Congress as they consider whether they’re going to vote for it or not.”

3rd Stimulus Check UPDATE!

The U.S. Senate early Friday morning approved a budget resolution that will allow passage of President Joe Biden’s coronavirus stimulus bill and also agreed that it would restrict high-income taxpayers from claiming the $1,400 direct payments.

Lawmakers worked through the night on a bevy of amendments to the resolution, which will trigger a procedure known as reconciliation and Democrats to pass a $1.9 trillion package by majority vote without the threat of a filibuster. The final vote was cast just after 5:30 a.m.

Adopting several amendments proposed by Republicans would allow President Joe Biden to claim that the stimulus package was bipartisan even if every GOP senator eventually votes no.

On one bipartisan proposal, senators voted, 99-1, in favor of provision that could exclude wealthier households from any payments. U.S. Sen. Rand Paul, R-Ky., cast the only no vote.

The amendment does not define “upper income” but in the first stimulus bill, individuals earning $75,000 or less and married couples earning $150,000 or less received the full $1,200, while individuals making up to $99,000 and married couples making up to $198,000 received a smaller check based on income.

“I don’t think a single person on this floor would disagree to target the relief to our neighbors who are struggling,” said U.S. Sen. Joe Manchin, D-W.Va. “There are other families who have not missed a single paycheck as a result of this pandemic. It does not make sense to send a check to those individuals.”

The amendment was proposed by many of the same senators, including Manchin and Maine Republican Susan Collins, who worked together on a stimulus bill that led to the $900 billion measure that became law last December.

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“The question before us is quite simple,” Collins said. “Do we want stimulus checks to go to households with family incomes of $300,000? Or do we want to target the assistance to struggling families who need the help and provide a boost for the economy?”

Collins also was part of a group of 10 Senate Republicans who proposed a $618 billion stimulus bill that President Joe Biden rejected as too small. That measure included $1,000 payments that would cut off at $50,000 for individuals and $100,000 for married couples filing jointly.

Senators also passed an amendment offered by U.S. Sen. Todd Young, R-Ind., to ban unauthorized immigrants from getting stimulus checks by a vote of 58-42. Both of New Jersey’s U.S. senators, Cory Booker and Robert Menendez, voted no.

One proposal that Senate Majority Leader Chuck Schumer said would not fly would be to substantially reduce the cost of the bill.

“If there are good-faith amendments from the other side, we look forward to them,” Schumer, D-N.Y., said on the Senate floor Thursday. “What we cannot do, however, is think small in the face of big problems. We cannot repeat the mistakes of the past. We cannot do too little. We cannot lock our country into a long and slow recovery.”

Once the Senate completes its work, the House would vote on the amended resolution, and has made plans to do so later Friday. That will allow lawmakers in both houses to begin drafting and debating the $1.9 trillion bill.

House Speaker Nancy Pelosi, D-Calif., said Thursday that the price tag was right.

“We want to save lives and save livelihoods; it’s going to cost some money to do so,” she said. “It is a reasonable plan. It meets the needs. It is not excessive. It is coronavirus‑centric, it is in a timely fashion, and that’s where we have to go.”

But Senate Republican Leader Mitch McConnell of Kentucky, who used the same parliamentary procedure in 2017 to pass a tax law that the Congressional Budget Office said would increase the deficit by the same $1.9 billion, objected to the size of the stimulus bill.

“There is no doubt that some families are still struggling,” McConnell said Thursday on the Senate floor. “This isn’t finished. But experts agree the remaining damage to our economy does not require another multi trillion-dollar, non-targeted Band-Aid.”

However, S&P Global reported that a $1.9 trillion stimulus “would have the strongest impact on the economy this year,” and the Brookings Institution, a Washington research organization, said a package that high would restore the economy to pre-pandemic levels in the third quarter of the year.

SOURCE By: Jonathan D. Salant | NJ Advance Media for NJ.com