Here’s what we know about the new stimulus check 0:54
. –– The US Internal Revenue Service (IRS) has already mailed the US $ 600 checks, approved in the December stimulus package, to all eligible taxpayers on file. A process that culminated while Congress continues to negotiate a third round of direct payments.
Some paper checks or debit cards may still be in the mail. However, there could also be some eligible recipients who have not received your money and need to claim it on their 2020 tax return.
The IRS was asked to issue the payments in mid-January, in order to move on to processing this year’s tax returns.
Eligible people who have moved houses or changed bank accounts since filing their 2019 tax returns may not have received the money. But, they can claim it on their 2020 tax return. For those who are not required to file federal taxes because their income is very low and they did not receive the stimulus payment, they will need to file a return this year to get the cash.
More than 147 million payments were issued for the second round of stimulus, which was authorized by Congress in late December. About $ 142 billion was shipped, helping to boost retail sales in January and achieve the first increase in months.
The stimulus check could come at a political cost 2:30
Who is eligible?
Not everyone who received money in the first round of $ 1,200 direct payments this past spring was eligible for the second $ 600 stimulus check.
Minor payments were cleared faster. So those earning more than $ 87,000 a year were excluded. Also to couples without children who earn more than 174,000 a year.
The first two rounds of stimulus payments were based on taxpayers’ reported income in 2019. That means someone who lost their job or whose income decreased in 2020 may be eligible to receive more money than they initially made.
If that is the case, the individual can claim a “Recovery Refund Credit” on their 2020 tax return. Credit eligibility and amount will depend on income for tax year 2020.
Now, those who have earned more in 2020 than in 2019 are not required to return the money they have already received.
Congress considers a third round of stimulus check
Congress negotiates a new stimulus package that may include a third round of checks. Democrats in the House have proposed sending direct payments of up to $ 1,400 per person. A family of four could receive up to $ 5,600.
People earning less than $ 75,000 a year and married couples earning less than $ 150,000 will be sent the full amount.
However, not everyone who received a prior stimulus check would be eligible for this round. The payments would phase out faster and completely exclude people earning more than $ 100,000 and families earning more than $ 200,000, regardless of how many children they have.
Payment will be calculated based on 2019 or 2020 income. Unlike the previous two rounds, dependent adults would be eligible for stimulus checks.
Lawmakers expect the bill to be approved in mid-March. The full House can vote on the bill next week, but it could face roadblocks in the Senate.