Here’s how soon the money could come


Millions of Americans could receive new stimulus checks worth $ 1,400 now that the House of Representatives has passed the latest coronavirus relief bill.

The fate of those payments is now in the hands of the Senate, which is due to begin considering the proposed legislation this week.

The terms have required direct payments of $ 1,400 per individual and per dependent.

Payments would be based on the same income thresholds as the first two stimulus checks. Individuals with up to $ 75,000 in adjusted gross income, heads of household with up to $ 112,500 and married couples filing jointly with up to $ 150,000 would receive full payments.

But the controls would be phased out for those with incomes above those levels. This time around, they would have a cap on people earning $ 100,000, heads of household earning $ 150,000, and married couples earning $ 200,000.

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The coronavirus stimulus package is making its way through the House and Senate under budget reconciliation. That process will likely avoid major alterations to the plan, although the final figures may be subject to change.

“There will be setbacks and efforts to reduce the size of the package,” Bill Hoagland, senior vice president of the Center for Bipartisan Policy, said of the upcoming Senate negotiations.

Republicans are expected to disagree with the total spending of $ 1.9 trillion, particularly regarding funding for states, multi-employer pensions and relief not directly related to the Covid-19 pandemic, he said. (In fact, the House version went from 219 to 210, without any Republican support.)

Because the $ 1,400 stimulus checks are one-time payments, they are not likely to become a sticking point in negotiations, Hoagland said.

$ 1,400 prospective payment schedule

The legislation is expected to be final in mid-March, when federal unemployment benefits expire.

As with the first two stimulus checks, most payments will likely be sent by direct deposit to those who already have their bank information on file with the IRS. Based on the latest checks for $ 600, that money could start arriving within two weeks of the legislation finalizing, according to Garrett Watson, a senior policy analyst at the Tax Foundation.

The rest of the direct payments will be sent by mail, either as debit cards or checks. Those payments may take longer to arrive, potentially in April and May, Watson said.

One of the reasons payments could be delayed this time is the fact that the IRS will be in the middle of tax season when they come out, he said.

However, experience with previous payments could help the process go more smoothly.

“The good news is that there is a little more infrastructure and a more formalized process to do this than at this time last year, because they have been through it twice,” Watson said.

This time, the checks will be based on 2019 or 2020 returns.

The IRS has said that it has sent all the “legally allowed” first and second stimulus checks and is now focusing on tax filing season.

The tax agency sent more than 160 million stimulus checks for $ 1,200 for a total of more than $ 270 billion. It has also sent more than 147 million direct payments of $ 600 for a total of more than $ 142 billion.

It is noteworthy that people who are eligible but have not received those previous payments can claim the money through a recovery refund credit on their tax returns.

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