$1,400 stimulus check, but with a catch? What to know about a third paymentFebruary 6, 2021
President Joe Biden’sand the of came another step closer to reality this week: On Friday, the for the proposal, which could make it easier for Democrats to move forward on passing a final bill. However, the next payment could come with a catch. It seems likely that the checks will be — so while those will get a larger payment than they did with the first or , a change to the could mean that some may not get any money at all.
We’ll walk you through what it all means so far, from the $1,400 upper limit to ways that qualifications could change to let in more groups and. We’ll also explain a that Senate leaders are preparing to try to push a bill to approval faster, as well as what happens if a payment were to arrive . For example, would it affect your and returns?
Here’s everything we know so far about a, including how you can to . This was recently updated.
What is a ‘targeted’ stimulus check, and why do some lawmakers want it?
The simple explanation is that some people are concerned that a stimulus check for $1,400 will go out to a proportion of people at relatively high income levels. If the bill is targeted toward lower income people, then, for example, using our, a person could make $102,900 per year (their ) and still get a partial payment… of $5.
The point is that if lawmakers want people who make below $75,000 per year to get $1,400, there are going to have to be adjustments to how things are done. One way would be to change thethat was used in the first two checks. Another would be to present an arbitrary cutoff (e.g., a check would only go out to people who make under a certain amount per year, as per their AGI). A third could be to lower the maximum amount of the next stimulus payment (because, math). Our .
Is there any way to get my third check faster?
Possibly. Yourare tightly intertwined. There are some important things to know about how your taxes can affect whether you’d qualify or not, depending on and your . But now, taxes are also tied to any you or . If you file your taxes sooner, you can get a than if you, for example, filed a tax extension. We also recommend setting up to get a catch-up payment faster — and potentially a .
Is the $1,000 check in the $600 billion GOP stimulus plan still under consideration?
Over the last several days, Biden and his administration have made it clear that it will not seek to alter his ballpark price tag on the bill as well as the , saying the Republican offer was “not even in the cards,” Politico and other outlets reported.to fit a $600 billion counterproposal pitched by a group of 10 moderate Republican senators. Biden wants to keep both the
“We can’t walk away from an additional $1,400 in direct checks that we proposed because the people need them,” Biden told congressional Democrats during a Wednesday phone call, according to a source speaking to The Hill. “We can better target them.”
Now that the Senate has approved the budget resolution for Biden’s proposal, it allows Democratic lawmakers to move forward on a subsequent if not sooner.in the Senate. The budget resolution will head back to the House next week, where lawmakers must pass the same version before they begin writing the final relief bill. Once the House approves the funding proposed by the Senate, Congress will use the approved budget as a blueprint to build Biden’s bill, which is expected to come up for a vote in March,
The new stimulus check timeline is starting to shape up
With a smaller, piecemeal bill that focuses on a third stimulus check and off the table, Democrats are now looking for a March 14 passage of the next stimulus bill. But even if Congress could hit that precise date, that doesn’t mean you’d get your funds immediately.
There are a lot of variables we can guess based that could affect you personally, based on the first check, and others we won’t know the answer to until we can pore over the text of a final stimulus bill. For example,could have a dramatic effect on — we’ll just have to see how it all pans out.
In the meantime, we mapped out some dates a, depending on who you are.
How fast would the IRS send out the third check? Would they have another deadline?
The IRS and Department of the Treasury set a blistering pace to, starting within days of former President Donald Trump signing . They had no choice. The language of the bill provided only a 17-day window to send the checks before the imposed deadline. There were , and now will have to . (Yes, , too.)
It’s too soon to say if the IRS would automatically send a third check to recipients as they have done with the, or if the money would be wrapped up into a . or something like it. We walk through more possible scenarios for the .
Could stimulus check qualifications change with the third payment?
Biden proposes two changes that have been popular among Democratic lawmakers. The first would expand qualifications to People’s Policy Project, like college students, and dependents of all ages with disabilities (not just those under 17 years old)., including 13.5 million more people, according to the
The second change to eligibility would include all “” with one or more family members who aren’t US citizens. For example, if the parents aren’t US citizens, but their children, who were born in the US, are. The second stimulus checks .
Some families could get more money next time, even with a targeted check
A larger maximum total per person is the obvious way your household would see more money from a third check than from the second, but there’s more to it than that. Since the upper limit for the, with an extra , the way , more people hit the upper income limit for receiving a second payment, which means they at all.
A third stimulus check could make more groups of people(namely who pay taxes), and bring a larger check total to qualified individuals and their families. A change to your circumstances might also mean you qualify for more money this time. Here are other ways a in your pocket.
If a $1,400 payment is approved, could some people still get $2,000?
Biden’s stimulus plan calls for the next check to max out at $1,400 per eligible adult — not the $2,000 some originally expected. The idea is that this third check “raises” the $600 maximum set out in the second stimulus check to $2,000, once you combine the per-person payment totals — but without factoring in.
One question is whether, if the qualifications were extended to new groups of people who weren’t included in the first round, the new recipients could get the entire $2,000 sum. There hasn’t been significant public discussion around the topic, so it’s one we’ll continue to monitor — but we wouldn’t necessarily hold our breath.
For more information about, here’s other funding that could be in the , how to and everything your (and the other way around).