It’s been roughly a year since the first COVID-19 relief plan was passed and 2-3 months since the second COVID-19 relief plan was passed as well. Now, today we are pleased to share with you that a $1.9 trillion Covid relief package that was approved by the Senate and signed by President Joe Biden after the House took a final vote. This article will lay-out what the third relief plan entails along with hyperlinked references below that you may consult for more information.
The third COVID-19 relief plan includes a $1,400.00 stimulus check, funding for increased vaccine distribution, aid to small businesses, and extended unemployment benefits. Today, we are covering information regarding the $1,400.00 stimulus checks:
The payments are projected to be sent out this month. Below is a breakdown of eligibility according to income limits as well as the monetary amount each eligible persons will receive:
- The payments are worth up to $1,400.00 per person, including dependents. Hence a couple with two children can receive up to $5,600.00. Unlike prior rounds, families will also receive additional monies for dependents over the age of 17.
- The payments are worth up to $1,400.00 will be allocated to individuals earning less than $75,000.00 of adjusted gross income, heads of households (i.e. single parents) earning less than $112,500.00 and married couples earning less than $150,000.00. Payments gradually phase out for households or persons whose earnings surpass the aforementioned.
- Individuals who earn at least $80,000.00 a year of adjusted gross income, heads of households who earn at least $120,000.00 and married couples who earn at least $160,000.00 do not qualify for the third round of stimulus payments — regardless of how many children they have.
When can you expect your stimulus check?
- Some individuals and households could potentially start seeing the payments direct deposited into their bank accounts this very week. For the previous pandemic stimulus package, the IRS started sending out the second round of payments three days after former President Donald Trump signed the legislation in late December. However, it’s possible that the tax filing season which is underway, could slow down the process.
- The disbursement of the stimulus payments will not be disbursed simultaneously. Tax filers whose banking information is on file with the IRS would likely receive payment first. The remaining group may receive paper checks or prepaid debit cards in the mail.
If you received a stimulus check in the past, will you get this one?
- Not necessarily. While the same people who received the full amounts in the previous two rounds of stimulus checks will likely get the full amount this time. The checks disbursement process should be faster this time around however certain lower income households who do not have a bank account on file with the IRS may experience a delay in receiving their paper-based checks.
- The first round of stimulus checks was worth up to $1,200.00, excluding those who earned at least $99,000.00, head of household filers with one child who earned more than $136,500.00 and married couples without children earning more than $198,000.00 — but larger families with several children earning a bit more were still eligible.
- The second round of stimulus checks was worth up to $600.00 and had a different set of qualifying parameters. The second round phased out entirely at $87,000.00 for single filers without children and $174,000.00 for those married filing jointly without children. Again, those households with several children earning a little more were still eligible.
Who is not eligible?
- Undocumented immigrants who do not have a valid social security number remain ineligible for the payments. However, spouses and children of undocumented immigrants who are legal residents or citizens of the United States are eligible for as long as they have a valid social security number.
Will you owe money to the IRS if you earned more in 2020?
- No. If your earned income in 2020 was increased because of the received stimulus income you will not owe any additional monies to the IRS. However, if you earned less income in 2020 filing your tax return now — before the stimulus payments go out — may result in a bigger refund check.
This is The Law Offices of Marjory Cajoux and we are ready and committed to provide you best possible service and support in your immigration, real estate and personal injury needs.