President Joe Biden signed into law a $1.9 trillion relief package on Thursday that he said will help defeat the virus, nurse the economy back to health and deliver direct aid to Americans struggling to make ends meet.
Some cash distributions could begin arriving in the bank accounts of Americans this weekend via direct deposit.
Many have hung on Biden’s words about a $2,000 payment that was widely discussed during his campaign for the presidency. Now it has been made clear that a separate $2,000 stimulus will not be paid. Instead, some Americans will individually receive $1,400, depending on their income. There are also plans for parents to receive an additional payment.
The latest bill, aimed at battling the killer virus and nursing the staggered economy back to health, will provide direct payments of up to $1,400 to most Americans. There’s also money for COVID-19 vaccines and testing, aid to state and local governments, help for schools and the airline industry, tax breaks for lower-earners and families with children, and subsidies for health insurance.
“We are not going to be timid in the face of a great challenge,” said Senate Majority Leader Chuck Schumer, D-New York.
Biden and Senate Democrats agreed to tighten eligibility for the direct checks to individuals. The new provision completely phases out the $1,400 payments for individuals earning at least $80,000 and couples making $160,000, well lower than the original ceilings.
Who would get the $1,400?
Those who earn less than $75,000 or heads of households who make less than $112,500. Married couples who file their taxes together would both qualify for the full amount if they make up to $150,000 jointly. (Couples would get $2,800.)
American workers who make between $75,000 and $80,000 would also get checks, but they would be less than $1,400. The same goes for heads of household making $112,500 to $120,000 and couples making $150,000 to $160,000.
Those who make above these pay limits would not receive the stimulus.
What will taxpayers who are parents get from stimulus?
Parents would get $1,400 more for every child on their tax returns in addition to the general stimulus payments. That includes adult children, such as college students, and those with permanent disabilities, unlike last year’s stimulus payments.
So if you’re a family of four with a household income under $150,000, you should get $5,600.
How will my income be determined?
For those who have already filed their 2020 taxes, that tax return will be used. For those who haven’t, the IRS will use the 2019 tax return.
Could job loss affect stimulus payments?
The answer is yes. One significant element to note is that people who lost their jobs or whose incomes decreased for any reason last year should file their tax returns as soon as possible to get the maximum stimulus payment, according to an NBC News analysis. If the IRS processes your new return by the time payments are released, that is the income the payments would be based on.
If you don’t file in time, it would be based on your 2019 income — before the pandemic occurred.
When could this bill become law?
House Democrats plan to pass the $1.9 trillion coronavirus relief package Wednesday morning.
When could I get my payment?
Biden last week announced that checks will start going out this month, so some can expect those direct payments in their accounts by the end of March, according to the White House, though an exact timeline has not been set.
The IRS started sending out the last two rounds of stimulus checks within days of the payments being approved. As with previous payments, most people will have the money deposited directly into their bank accounts.
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