Every important thing you should know about stimulus checks todayFebruary 19, 2021
It’s go time for the IRS.is now underway, and on top of , the agency also needs to process . On top of that, Congressional Democrats are attempting to complete a by mid-March, which could have the out a within days of being signed into law by President Joe Biden. (Here’s how a .)
House Speaker Nancy Pelosi confirmed on Thursday that the House will bring a bill the a vote by the end of next week, so it can send the package onto the Senate and then to Biden to sign before March 14, when are set to expire. To speed the bill through Congress, Democrats are using a legislative tool called that would remove barriers that Republicans could use to slow down a vote. By fast-tracking the legislation, the IRS could start sending the , if Congressional Democrats can keep to their schedule.
While Congress is working out the details on aover the next month, however, millions of Americans are still waiting for — we’ll explain how to claim that missing money as . We’ll also tell you what you need to know about how (around , for example) and when it’s for your missing money. Below, we’ve broken down the most important stimulus check facts right now. This story was updated with new information.
Congress is moving forward with Biden’s plan for $1,400 checks, with changes to income limits
Biden hasn’t wavered from his promise to send his American Rescue Plan in January. What has been open to debate, however, is who would ., since first announcing his plan for a third round of payments in
A group of moderate Senate Republicans in January lobbied Biden to reduce the check amount and significantly lower the income cap required to qualify for a payment. While Biden rejected the proposal — saying “Congress must respond boldly and urgently” — the Republican pitch kicked off a discussion on “targeting” the next round of payments to exclude higher earners from receiving money.
After some back and forth in Congress on whether to current House Democrats’ plan (PDF), individuals with an (or adjusted gross income) of $100,000 a year would be excluded from receiving a payment. Heads of household earning $150,000 a year and couples earning $200,000 would also be above the upper limit to qualify for any money., House Democrats settled on a plan that would used for the first two checks but set a upper cap to cut off payments for higher earners. Under the
See ourto get an estimate for how you and your family would do under the plan.
Democrats will speed approval of the third checks through Congress, here’s how
Using a powerful, seldom-used legislative tool called, Congressional Democrats hope to speed through approval of Biden’s rescue bill. The reconciliation process comes with strict requirements for what can and can’t be included in the bill. For example, House and Senate Democrats are working through whether they can include as part of the bill.
Tax season 2020 is important for stimulus checks, even if you don’t usually have to file
Tax-filing season this years carries an extra load for those who qualify for the first, second or potentially third stimulus checks — and that’s. The IRS uses the federal tax system to decide things like (based on ), how and even if you should get a (it’ll be faster if you and ).
The third payment looks like it could bethe situation for some.
Ifor , or , the IRS will also use your 2020 taxes to reconcile the difference — but only as part of a . Again, that even applies to to file income tax. Here’s our primer on , and .
One more thing: If you got a, but you never got your funds, you may need to rather than use the IRS’ rebate credit.
A third stimulus check could get sent out faster than the first two did
It took exactly nine months to get from the(March 27, 2020) to the (Dec. 27, 2020). Even before taking office, Biden had pushed for Congress to another quickly — one that includes a .
If as Pelosi plans, Biden signs the bill by March 14, payments could be sent out quickly to bank accounts — within days — now that the IRS has its system in place after the first and second checks. Here’s theas we know it now.
More people may qualify for a third stimulus check — but fewer could, too
With with the Biden administration, House Democrats are looking to expand who qualifies for a check and include at last two groups left out of the first payments:and families with (that means some members are not US citizens).
But Congress could decide towith the first two checks. Congress has settled on the coming with a . But they are looking at setting a cap on the upper income limit to , which would mean some in the upper-income category may not receive any money at all, for themselves or their dependents.
If you are curious, here are the details of.
Your stimulus check rights improved with the second round — but there are exceptions
Usually, stimulus dollars are yours to spend or save as you please. You can’t be compelled to spend your proceeds on rent, car payments, back taxes or debt — or even. But the second check that went out last month changed some of the rules.
The government’s Taxpayer Advocate Service, which works with the IRS, has pointed out that anyone claiming a not automatically protected from garnishment.for catch-up stimulus money is
It isn’t clear how a third check would play into the mix. And there is still an exception that allows at least one entity to garnish your stimulus money. Make sure you.
Stimulus check rules and exceptions can get complicated
With stimulus checks, small details and exceptions can be dizzying. While some situations are easy to decipher, others concerning you and your dependents might make it unclear if you’re eligible, how much money you could receive and if there’s anything extra you have to do to claim your money.