With the Senate’s $1.9 trillion American Rescue Plan headed back to the House of Representatives for final approval and President Joe Biden’s signature, many Americans can look forward to a 3rd round of stimulus checks meant to provide economic relief after a year of the COVID-19 pandemic, quarantine and business slowdowns. Most who will receive the payments will get $1,400 per individual. This time, some families will receive the same amount for each of their children.
Who Will Qualify?
The stimulus payments are for families of low to middle income. Single earners of $80,000 or more, and families making $160,000 or more, will not receive stimulus payments or payments for children.Read More »
Still, about 8 million who could have been eligible for the stimulus payments under a more generous proposal will now receive no payments, CNBC said, quoting an estimate from the Urban-Brookings Tax Policy Center.
According to CNN, while 61 percent of Americans support the bill, it is far more popular with business leaders: 73 percent gave it high marks, in a virtual Yale CEO caucus. Some also called it too expensive, however.
The House was slated for a final vote on the package on Wednesday (March 10).
When Will the Money Arrive?
After Biden signs the bill, it is assumed payments would be automatically deposited for taxpayers who received previous stimulus payments that way. It is possible, however, that checks might be mailed instead this time.
During the last round of stimulus checks, about 35 million were sent through the mail by paper checks.
Those who were eligible to receive previous stimulus payments but still haven’t seen them should check the IRS’ Get My Payment app. If it says “Payment Status Not Available,” either you aren’t eligible or the IRS wasn’t able to send you the payment. If you are eligible, you can always deduct the amount you were due when you file your taxes.
Use the Recovery Rebate Credit on the IRS website to claim your stimulus money. Some other tax information to note also has changed during this round of pandemic stimulus money.
Parents can claim college students who are dependents, and older relatives claimed as dependents also count toward stimulus eligibility. The checks go to the taxpayer rather than the student or older relative.
Other Changes in the American Rescue Plan
In addition to direct stimulus payments, the bill the House is considering also would include:
- a $300 increase to jobless benefits
- $350 billion in local and state aid
- help paying rent for low-income tenants
- money for education, health care and small businesses.
It would also offer income tax relief to those who have student loan debt that has been forgiven.
Parents can look forward to tax relief under the proposal’s expanded Child Tax Credit, with filers able to claim $3,600 for children 5 and younger, and $3,000 for ages 6 to 17.
How Many Are Affected?
The cash payments alone would benefit some 280 million Americans, according to an estimate by the Institute on Taxation and Economic Policy.
In addition to local and state stimulus money, California residents can look forward to one-time Golden State Stimulus checks of $600 or $1,200, depending on income and other qualifications. CEOs from 150 companies had urged Congress to swiftly pass the package for Coronavirus and economic relief, according to Bloomberg. “We have to jump start the economy, and the stimulus I believe is the only logical answer,” Dexter Bridgeman, founder of MIA Media Group, told the Miami Herald in December.
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