Third time’s a charm with a few tweaks.
Recently, the House approved the latest stimulus proposal backed by President Joe Biden, known as the American Rescue Plan. The bill is now set to move to the Senate for review. If it garners sufficient support, it will then proceed to the president’s desk for his expected approval. While the package offers various benefits to the public, some members of Congress have reservations about certain elements, such as the proposed minimum wage increase. However, for now, let’s focus on what many of us are eagerly anticipating and some are eagerly awaiting: a third round of stimulus checks.
If the Senate gives the green light, and President Biden signs the bill into law, the IRS will promptly start issuing $1,400 stimulus payments. To be eligible for these payments, individuals must have an annual adjusted gross income of $75,000 or less, while married couples filing jointly should have a combined income of $150,000 or less. If your income exceeds $75,000, the payment amount will gradually decrease and phase out entirely at $100,000 for individuals and $200,000 for couples. Similar to previous rounds, households with dependents will receive additional funds; however, this time, the allocation is more inclusive.
Stimulus checks, unemployment benefits lift 1.6 million Americans out of poverty https://t.co/pu3u2kW5Ny
— CNBC (@CNBC) March 1, 2021
Unlike previous rounds, where families only received $500 per child under 17, this time, any dependent, regardless of age, will qualify the household for an additional $1,400 payment. This change will particularly benefit families with older dependents, such as college students.
The IRS will utilize your most recent tax filing to determine your eligibility for the stimulus payments. If you have already submitted your 2020 taxes, the IRS will base its calculations on that information. According to Senate Majority Leader Chuck Schumer, if all proceeds smoothly in the Senate, the bill aims to reach President Biden’s desk by March 14, with payments expected to commence around March 17.
