Stimulus update: $1,400 checks could come with new income limits, tax tie-inMarch 5, 2021
Thelooks to be on track for approval by Congress in . But that doesn’t mean everything around — including and — is set in stone. The Senate has already proposed one significant change for that is part of and it could make more during an hours-long amendment process in the next few days where any Senator can propose changes to the relief bill.
Even before the, there was a lot to keep track of around the payment. And to make things even more confusing, it’s now , which this year is connected to . The IRS, which already has a full plate with , is processing claims for stimulus money owed from the via on this year’s federal tax forms. Here’s more on how the .
To help make sense of it all, we look at key stimulus check details as the payments head toward approval. We’ll tell you everything you need to know about how(around , for example) and when it’s for your missing stimulus money. (Here is too.) This story is updated frequently with the latest information.
The Senate is working on the $,1,400 checks — and making changes
The Senate didn’t waste much time making changes to thethe House approved , proposing at least one significant adjustment to the income requirements for the .
The House set an upper cap on income to cut off payments for higher earners: Under the House plan, individuals with an(adjusted gross income) of $100,000 a year would have been excluded from receiving any payment. Heads of household earning $150,000 a year and couples earning $200,000 would also have been above the upper limit to qualify for money.
The Senate dropped those upper income limits to exclude more high earners from receiving any money. Under the Senate plan, single taxpayers would be over the income limit with an AGI of $80,000, heads of household at $120,000 and those who married and file jointly at $160,000. Under the House bill, 297 million people would have recieved a payment, according the Institution of Taxation and Economy Policy, a left-lean think tank. Under the Senate’s plan, nearly 17 million people who qualified under the House plan would not make the cut, with 280 million people qualifying for money, the institute said.
See ourto get an estimate for how you and your family would do under the new Senate plan.
How Democrats will speed approval of the third round of payments through Congress
Congressional Democrats are pressing to hit a mid-March date before some federal pandemic-assistance programs begin to expire, includingthat end by the middle of the month. To meet that aggressive deadline, Congressional Democrats are using a powerful, little-used tool called to speed passage of the economic rescue bill. The reconciliation process allows the Democrats to bypass opposition to the legislation but there are strict rules about what budget items can and can’t be included in the bill. would not meet the guidelines for the bill.
Tax season 2020 is important for stimulus checks, even if you’re not usually required to file
Tax-filing season this year carries an extra burden 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 . Another possible complication: The IRS could decide to delay .
One more thing: If you got a, but you never got your funds, you may need to rather than apply for the IRS’ rebate credit.
A third stimulus check could go even faster than the first two did
Congressional Democrats are pushing to send out the third round of payments quickly, possibly before the end of March. If the new bill becomes law by March 14, the IRS could start making payments within days — as it did with the second round of checks — now that it has a system in place for processing the payments. Here’s what.
More types of people could qualify for a third stimulus check — but fewer could, too
The stimulus bill now with the Senate expands who qualifies for a check and includes at last two groups left out of the first payments:and families with (meaning some members are not US citizens).
But the current bill alsowith the first two checks. Congress has settled on the coming with a . But by setting a hard cap on the upper income limit to , 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 the.
Your stimulus check rights improved with the second round — but not without 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 some of the rules changed for the second check that went out in January.
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 whether anything would change for a third check. 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 are pretty complicated
With stimulus checks, the 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 may receive and if there’s anything extra you have to do to claim your money.