Stimulus update: $1,400 checks, income limits and all the nitty-gritty detailsFebruary 23, 2021
To send out confirmed on Feb. 18 that the House will bring to a vote by the end of February, before sending the package to the Senate and then to Biden to sign. Rushing out the next round of checks isn’t the only cause of urgency. Federal unemployment benefits are set to expire March 14, and Democrats are hoping to have Biden sign the law before they lapse. Democrats are using a legislative tool called that would remove barriers that Republicans could use to slow down a vote. With Congress fast-tracking the legislation, the IRS could start sending , if congressional Democrats are able to keep to their schedule.as quickly as possible, House Speaker Nancy Pelosi
Meanwhile, millions of Americans arethat were approved in 2020. is already in full swing, and those who never received their first or second stimulus checks will be able to when filing 2020 returns. This year, the IRS will be even busier than usual as Congress is requiring it to work through alongside . Not to mention, if Congress approves Biden’s bill by mid-March, it is the IRS that will be tasked with a shortly after Biden signs the bill into law. (Here’s how a , even if the .)
Below, we’ve broken down the most important stimulus check facts as they stand right now. We’ll tell you everything you need to know about how(around , for example) and when it’s for your missing stimulus money. This story is frequently updated with the latest information.
Congress is moving ahead 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 an upper cap to cut off payments to higher earners. Under the
See ourto get an estimate for how you and your family would do under the plan.
Here’s how Democrats will speed approval of the third round of payments through Congress
Using a powerful, little-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’re not usually required to file
Tax-filing season this year 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 even faster than the first two did
It took nine months to get from the(March 27, 2020) to the (Dec. 27, 2020). Even before taking office, Biden has pushed for Congress to pass another quickly — one that includes a .
If as Pelosi plans, Biden signs the bill by March 14, payments could be sent out to bank accounts — within days — now that the IRS has a system in place after handling the first and second checks. Here’s theas we know it now.
More types of people could qualify for a third stimulus check — but fewer could, too
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 legislators 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 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 the second check that went out in January 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 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.