Stimulus update: $1,400 checks, income limits, tax tie-in, House set to voteFebruary 25, 2021
With thealready out and a possible on the way, there is a lot to keep track of if you . And to make things even more confusing, it’s now , which this year is connected to .
To begin with, on Friday, the House of Representatives intends to vote on its version of the American Rescue Plan Act. Although the included in the bill has been set for at least a month, other elements, such as who would and wouldn’t , have been up for debate. Next, 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 how the , even if 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 House is close to a vote on $1,400 checks, with changes to income limits
The House Majority Leader Steny Hoyer tweeted Tuesday evening, confirming the vote. After the House passes the legislation, it will move over the Senate and then finally to President Joe Biden to sign by March 14, if Democrats keep to their compressed schedule for the bill.is set to clear a major hurdle this Friday. House Democrats by the end of the week plan to bring to a vote the that would authorize the checks. “The American people strongly support this bill, and we are moving swiftly to see it enacted into law,”
Congressional Democrats are pressing to hit that 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, the House and Senate still need to nail down many details concerning , including and once approved.
After considering current House Democrats’ plan, individuals with an (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 have 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.
How Democrats will speed approval of the third round of payments through Congress
Working toward a mid-March date for approval, Congressional Democrats are using a powerful, little-used tool calledto 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. 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 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 House stimulus bill 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 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 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.