Stimulus Check Deadline Has Almost Passed
In order to be eligible for the stimulus check payment, you should earn less in 2020 than you did 2019. As an example, if something were to change on the tax return of 2020- like you added a dependant in your family or you accrued less money- you would be eligible for the plus-up payments. Most of the Americans have been looking toward scoring a surprise stimmy need to act immediately as the IRS deadline of 31st December seems to have passed.
The easiest way to apply for the stimulus check payment would be to provide your tax return for 2020. Once the IRS has the information, they would be evaluating whether they are eligible or not. Most Americans will also be checking the status of their stimulus payment using the IRS Get My Payment Tool. About 500,000 plus-up payments have already been through direct deposit, while the rest has been sent through via checks.
One of the senior executives at Braun-Bostich & Associates in Pittsburgh, Cassandra Kirby, stated that people will be seeing their adjusted annual income dropping from $165,000 to $155,000. This would render them eligible for the stimulus check money of $2,800.
Democrats Victorious In Senate Vote On New Stimulus Bill
After a mamoth 15-hour session in the Senate the Democrats have successfully passed a budget resolution which paves the way for them to use reconciliation to pass President Biden’s American Rescue Plan.
The $1.9 trillion covid-19 stimulus bill had faced growing criticism in recent weeks and on Sunday a group of ten GOP lawmakers sent a letter to the White House proposing a counter-offer worth just $600 billion. Today’s vote does not see the final stimulus bill passed but does show that the Dems can do so without bipartisan support.
There was, however, a non-binding amendment to the bill which would see high income earners excluded from receiving the $1,400 stimulus checks.
No Sign Of Fourth Check
As the omicron variant stokes worries of another shutdown in the US, there has been no indication a fourth stimulus check will be sent.
On November 26, the World Health Organization designated omicron as a Covid-19 variant, and labeled it as a very high global risk.
The Federal Reserve Chairman Jerome Powell warned Congress that the new variant could have a negative impact on the economy.
The recent rise in COVID-19 cases and the emergence of the Omicron variant pose downside risks to employment and economic activity and increased uncertainty for inflation, he wrote.
Greater concerns about the virus could reduce peoples willingness to work in person, which would slow progress in the labor market and intensify supply-chain disruptions.
Millions of Americans have signed petitions calling for additional payments, but the White House has not proposed another round of checks.
Read Also: Direct Express 3rd Stimulus Check Deposit Date
When Will The Payments Be Disbursed
Biden said some of the payments could be disbursed later in March. The IRS began sending out the previous round of stimulus payments within a few days of the last relief bill’s passage in December.
Like the other two payments, taxpayers can track the status of their payments with IRS Get My Payment tool. Just note that that tool has been glitchy in the past, and can be overwhelmed when too many people try to use it at once.
Who’s Shut Out In The Final Bill
People who file their tax return using the “single” filing status with an adjusted gross income between $80,000 and $100,000 “head-of-household” filers with an AGI between $120,000 and $150,000 and married couples filing a “joint” return with an AGI between $160,000 and $200,000 won’t get a third stimulus check. These people would have gotten a reduced payment under the original bill, but they won’t get any money under the final bill sent to the president.
Under both versions of the bill, singles with an AGI above $100,000, head-of-household filers with an AGI exceeding $150,000, and joint filers with an AGI over $200,000 wouldn’t receive any third-round stimulus payments. For more on who will or won’t get a third stimulus check under the final bill, see Who Won’t Get a Third Stimulus Check Under the New Senate Plan?
To calculate the amount of YOUR third stimulus check , use our handy Third Stimulus Check Calculator. All you have to do is answer three easy questions to get an estimated payment amount.
Recommended Reading: 2nd Stimulus Check Release Date
When Will The 3rd Stimulus Checks Be Released
Americans will need to wait until Biden’s $1.9 trillion stimulus plan, or something like it, is introduced in Congress and passed. However, it’s unclear how long that will take.
The U.S. Senate is currently split 50-50, but Democrats control the chamber because Vice President Kamala Harris serves as the tie-breaking votes.
The legislation would require 60 votes to pass in the U.S. Senate, so Biden would need support from at least 10 Republicans and every Democrat for it to pass. However, Democrats could use a budgetary tool – known as reconciliation – that would allow the Senate to pass a possible bill with just 51 votes.
During the first round of stimulus checks in April 2020, it took about two weeks for the federal government to start distributing the money. It took around one week for the second round of checks, worth $600, in early January.
Assuming Congress is able to pass Biden’s relief bill in mid-February to mid-March, Americans could receive the third stimulus checks anywhere from late February to late March.
So, in short, a third check isn’t coming for probably at least another month.
Third Stimulus Check What You Need To Know
President Joe Biden referred to the most recent $600 stimulus check as a “down payment.” In keeping with his promise, Congressional leaders are working hard to pass a $1.9 trillion stimulus proposal that will include a provision aimed at putting $1,400 stimulus payments into more hands than previous payments reached.
Whether the $1,400 stimulus payments are passed as a part of a comprehensive stimulus bill or as a stand-alone is yet to be seen. Congress will be wrestling with many issues that may cause an unwanted delay in getting this new payment out into the economy, but the prevailing rhetoric at least is to see this third injection much sooner as opposed to later.
As with the first two stimulus checks, the total to be received per person will depend on a variety of factors such as adjusted gross income, classification of a dependent and a host of other qualifiers.
We do know that President Biden is intent on expanding eligibility for the third stimulus check to include dependents of any age and families with mixed citizenship status.
If you don’t have to use your stimulus check for basic needs, here are some considerations that you should make:
Beef up that emergency fund: 2020 has taught everyone to expect the unexpected. Having 3-6 months of living expenses in a savings account is key.
If you aren’t there yet, earmarking your stimulus check for your emergency fund can create some real peace of mind.
Fund your future retirement with an IRA contribution:
Also Check: Is A 4th Stimulus Check Coming
Who Qualifies For The Third Stimulus Check
Millions of Americans who were eligible for the $600 second stimulus checks could qualify for the third round of stimulus payments up to $1,400. However, many high-earning taxpayers who were eligible for previous stimulus checks are now excluded. The plan narrows income eligibility to exclude individuals earning over $80,000 and couples making over $160,000:
- Singles phase out at AGIs between $75,000 and $80,000.
- Heads of household phase out at AGIs between $112,500 and 120,000.
- Couples phase out at AGIs between $150,000 and $160,000.
Keep in mind that this is different from the sliding scale that was used to determine eligibility for previous stimulus payments. The IRS reduced second stimulus checks by 5% for the total amount made over the AGI limit. This means that payments went down by $5 for every $100 over the limit.
The table below breaks down third stimulus payments based on narrower income ranges for singles and joint tax filers:
|$1,400 Stimulus Checks With Narrower Income Ranges|
|$174,000 and up||$0|
If you want to get a specific breakdown, SmartAssets third stimulus check calculator will give you an estimate based on your filing status, AGI and dependents.
What If My Mailing Address Changed Since I Received My Previous Stimulus Checks How Will I Get My Third Stimulus Check
If you are expecting to receive your third stimulus check by mail, it will be mailed to the last address you filed with the IRS. If your address has changed since then, there are different options you can take to make sure your stimulus check gets to you:
Option 1: File your 2020 federal tax return to update your address. If you havent filed your 2020 tax return yet, this is an easy way to update your address. File a tax return with your current address and your payment will be sent through the mail once the IRS receives your updated address.
Option 2: Provide your banking information in the IRS Get My Payment tool. If the post office was unable to deliver your stimulus check, it will be returned to the IRS. Two to three weeks after the payment has been issued, Get My Payment will display the message Need More Information. You will have the option to have your payment reissued as a direct deposit by providing your banking information.
If you dont provide your banking information, the IRS will mail your payment once your address is updated.
Option 3: Notify the IRS that your address has changed by telephone, an IRS form, or a written statement. It can take 4-6 weeks for the IRS to process your request.
Also Check: How To Check If You Get The Stimulus Check
How Much Are The Payments Worth
The third economic impact payment is worth up to $1,400 per individual and dependent.
Single filers earning an adjusted gross income up to $75,000 and heads of household earning up to $112,500 will receive $1,400, and married couples earning up to $150,000 are eligible for $2,800. Those taxpayers will also receive $1,400 for each dependent.
After that, there is a steep income phase out: The payments decrease to zero for single filers at $80,000, for heads of household at $120,000 and for married couples at $160,000 AGI. Taxpayers will receive the same amount for each dependent.
The phase out rate is not uniform for the third round of direct payments, according to the Tax Foundation. It will depend on a taxpayer’s filing status and the number of dependents.
Single filers, for example, will experience a 28% phase out rate, meaning that they will receive $280 less for every $1,000 over $75,000 they earn, says Garrett Watson, a senior policy analyst at the Tax Foundation. An individual with an AGI of $77,000 would receive $840.
At the same time, while a married couple with no dependents would also see a 28% phase out rate, a couple with one dependent would see a 42% phase out rate. A couple with one dependent and an AGI of $155,000 would receive $2,100 total.
To see how much relief you may receive, use this calculator.
Can I Get The $1400 Stimulus Check And Unemployment Benefits
President Biden’s covid-19 bill includes $1.9 trillion of federal funding to help stimulate the economy and provide relief for those struggling the the economic consequences of the pandemic. This package will likely include $400-per-week of additional unemployment benefits for those who have lost their jobs, and another round of stimulus checks worth up to $1,400.
Also Check: Is Everyone Getting A Third Stimulus Check
If The American Rescue Plan Was The Easy Bill Things Are Going To Get Harder
Speaking on today’s edition of Meet The Press, White House correspondent Yamiche Alcindor gave a hint of what might be in store when future legislation goes to the Senate. “It is true that the bottom line is that President Biden was able to push through and is about to get this $1.9 trillion relief but it too so much. Just look at Joe Manchin to see that he is someone who is telling you he wants to be the responsible middle, saying that he wants to be balanced. Those are not the words that the Democratic base wants to hear, especially when they think of bigger bills and more ambitious issues, like immigration, infrastructure. This bill, on Covid, is happening when one in three people in America know someone who died of Covid. Senator Barraso was very clear that he is very open to saying that this is a mistake and that Republicans are not going to be a party that is going to say ‘yes we want to be bipartisan’ and we want to sit down and work with this president and do some things that are on the Democratic agenda. I think there really is the sense that, if this was the ‘easy bill’ where the pandemic was top on their minds for so many Americans, it just seems that things are going to get even harder when you look at infrastructure and especially, when you look at immigration, an issue that Republicans have seized on”.
I’m Eligible For A 2020 Recovery Rebate Credit But Did Not Claim It On My 2020 Tax Return Do I Need To Amend My 2020 Tax Return
Yes. Those who didn’t claim the credit on their 2020 tax return by entering an amount on line 30 of Form 1040 or Form 1040-SR, will need to file a Form 1040-X, Amended U.S. Individual Income Tax Return. The IRS will not calculate the 2020 Recovery Rebate Credit if the taxpayer did not enter any amount on their original 2020 tax return.
Those who need to file an amended return to claim the Recovery Rebate Credit should use the worksheet on page 59 of the 2020 instructions for Form 1040 and 1040-SR to determine the amount of the credit. Enter the amount on the Refundable Credits section of the 1040-X and include “Recovery Rebate Credit” in the Explanation of Changes section.
Those who filed their 2020 return electronically and need to file an amended return may be able to file Form 1040-X electronically.
Taxpayers who did not file their 2020 return electronically will need to submit a paper version of the Form 1040-X and should follow the instructions for preparing and mailing the paper form.
Those filing Form 1040-X electronically or on paper can use the Where’s My Amended Return? online tool to check the status of their amended return.
Read Also: Whos Getting A Second Stimulus Check
Treasury Secretary Predicts Tough Months Ahead For Us Economy
Janet Yellen, President Biden’s new Treasury Secretary, has warned of “some tough months ahead” as the US struggles to combat the coronavirus pandemic. She went on to urge Congress to pass President Joe Bidens $1.9tn stimulus package as a matter of urgency.
“This is really an urgent need and we need to act big, we have to make sure that we provide a bridge so that people arent scarred indefinitely by this crisis ,” she told ABCs Good Morning America yesterday. “I think everybody knows what America needs now.”
She went on: “We have 18 million people now who are collecting unemployment insurance and last week 1.3 million people filed new claims for unemployment, thats the highest level of unemployment-insurance claims weve had. Weve never had anything so large even during the Great Recession.
“So we need to make that people have jobs and if they dont have jobs theyre supported, and that when we come out of this and the economy rebounds – weve got some tough months ahead until we get control of the pandemic – but we want to make sure weve got a good strong labor market and can put people back to work”.
Can My Third Stimulus Check Be Garnished For Unpaid Debt Or Taxes
These payments are protected from all federal and state offset. That means you’ll get the full amount you qualify for even if you have past-due federal or state debt, such as child support, or you owe taxes from previous years.
But, because Congress used a process called “budget reconciliation” to pass this stimulus bill which only allows certain types of legislation to pass through Congress private collectors will have the right to garnish stimulus check money that lands in your bank account to cover unpaid debts. This is different from the previous $600 stimulus check, which had protections against garnishment.
Several consumer and banking trade groups signed a letter to Congress pushing for legislation to protect the new stimulus check funds from garnishment.
“We believe it is imperative that Congress ensure that these next stimulus payments are treated as ‘benefits’ subject to the federal exemption from garnishment,” the groups wrote. “Otherwise, the families that most need this money those struggling with debt and whose entire bank accounts may be frozen by garnishment orders will be not be able to access their funds.”
Recommended Reading: How To Track Stimulus Payment 2020
Why Haven’t I Received My Stimulus
There are a number of reasons why you may not have received your $600 stimulus check. For one, you may make too much money to qualify now that it’s a smaller amount than the first round of checks.
If you were expecting a check but still didn’t receive it, the IRS did run into some initial problems. Many people who filed their taxes with an online preparation service initially found that their payment did not make it to them directly. That is because money may have been sent to a temporary bank account established by the tax preparer, which is no long active. By law, the financial institution must return payments sent to closed or inactive accounts.
Since then, a number of tax preparation companies said that they were able to resolve the issues.
While the IRS continues to deliver the payments, eligible taxpayers who dont receive a payment, or received less than they should have, can claim it using the Recovery Rebate Credit when they file their 2020 tax return.
TEGNA Staff contributed to this report.
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