March 12, 2020 – The third stimulus bill reached President Biden’s desk for signing on Thursday, which was promptly signed into law. Already many taxpayers are reporting that they have received their checks in their accounts on Friday, with many more expected to receive their checks throughout the weekend and beyond. Here’s what you need to know.
Lower income limits for stimulus receivers
Stimulus check payouts begin phasing out above $75,000 income for Single filers, $112,000 for Heads of Households and $150,000 for married couples. These limits are much lower than the previous two stimulus payments as a result of concessions in congress.
How much will Americans get?
For those who qualify for the third check, single filers and heads of households will receive $1400 and married couples will receive $2800. An additional $1400 is also given for each dependent.
Adult dependents get a check this time
The previous two stimulus checks excluded adult dependents such as college students who were claimed by their parents. This time, they are included for $1400 stimulus checks.
2019 or 2020 tax year will be used to determine check amount
If you already filed for 2020, the IRS will use that to determine how much you will receive. If you haven’t filed yet, the IRS will default to the 2019 tax year, as they have done for the first two checks.
When will payments go out?
Payments have already begun hitting some Americans accounts, with several banks already having released the checks to account holders. Most banks will follow in the coming days.
For those that the IRS doesn’t have direct deposit information for, the IRS will be sending out paper checks or a pre-paid debit card in the mail.
Debtors may garnish stimulus checks
Due to the way the third stimulus bill was passed, debtors may be able to garnish the third stimulus check for private debts such as credit cards. Some in congress want to pass a bill to prevent this, but it remains to be seen if it will happen.
Other things in the stimulus bill
Included in the bill are extensions to unemployment in the form of $300 per week until September, as well as a waiver on taxes for up to $10,200 in unemployment payments. Additionally, the bill allocates funds for schools, COVID-19 vaccine rollout and tax credits for those with children.
For more information on the stimulus:
https://www.irs.gov/coronavirus/get-my-payment
https://www.cnbc.com/2021/03/12/1400-stimulus-checks-are-on-the-way-heres-who-qualifies.html
https://www.cnbc.com/2021/03/09/how-3000-dollar-child-tax-credit-works.html
