- A third round of stimulus checks will likely be approved in March.
- The proposed check would be the largest yet: up to $1,400 per person and $2,800 per married couple.
- The checks are part of a $1.9 trillion economic relief package called the American Rescue Plan.
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Congress is getting closer to approving another massive coronavirus relief package that includes a third round of direct cash payments to households, referred to as stimulus checks.
The proposed checks are larger than the previous two rounds and would pay up to $1,400 to individuals — including dependents of any age — and $2,800 to married couples.
Here are answers to some of the most common questions around stimulus checks.
Yes, probably by mid-March. Direct cash payments are part of a larger $1.9 trillion economic package called the American Rescue Plan that’s making its way through Congress.
The House will vote on the bill Friday. If it passes, it will go to the Senate and may be amended before a final vote.
Anyone with a Social Security number who meets the income requirements is eligible for a payment. The amount is based on 2019 tax return adjusted gross income (AGI), unless you file a 2020 return and it is processed by the time payments are sent.
In its current form, the bill calls for Americans with AGIs of less than $75,000 to get the full $1,400 payment — including dependents of any age. This is a break from the past two rounds of stimulus, which did not include payments for dependents age 17 and over, but did include smaller amounts for children.
Head of household filers who make less than $112,500 would also get the full $1,400. Married couples who file jointly and have AGI of less than $150,000 would get $2,800.
Reduced payments would be made to people in the following income groups:
- Single filers with AGI between $75,000 and $100,000
- Head of household filers with AGI between $112,500 and $150,000
- Married filers with AGI between $150,000 and $200,000
Those who aren’t required to file income tax returns can also get payments. Information collected through the IRS nonfilers tool will be used to send the checks to these recipients. Also, Social Security retirement and disability beneficiaries as well as Supplemental Security Income (SSI) recipients who don’t file taxes can get payments.
After the legislation is approved by the House and the Senate, President Biden will need to sign the bill before it becomes law.
During the last round of stimulus, the Treasury Department was able to initiate direct-deposit stimulus payments days after the relief bill was signed. Checks and debit cards were mailed within the following weeks.
No. In its current form, the bill says Treasury can use either 2019 or 2020 tax returns to determine someone’s payment.
However, if your income was lower in 2020 than in 2019, file your 2020 return as soon as possible so you can qualify for a check that most closely matches your financial need. The IRS began accepting and processing 2020 tax returns on February 12.
You’ll need to file your 2020 tax return to claim any stimulus money you’re owed from the first two rounds.
There will be a separate worksheet on your tax return with instructions for calculating any outstanding amount owed to you, if anything. If you file your taxes using online software, the provider will prompt you to enter the required information and do the calculations for you.
If you do qualify for additional stimulus money, you won’t get it right away. It will first be applied to your…