Here's who gets a payment under Biden's $1,400 stimulus check proposal
The new $ 1.9 trillion bailout plan introduced by President-elect Joe Biden provides an additional $ 1,400 in direct payments to Americans.
"We will end the task of giving a total of $ 2,000 in cash to the people who need them most," Biden said at an event in Delaware Thursday evening. "The already approved $ 600 is simply not enough."
The new payment would round off the previous payment of $ 600 that began distribution in December. Around $ 465 billion of Biden's $ 1.9 trillion rescue plan is slated to flow straight into Americans' wallets.
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The bonus per loved one is $ 1,400 and applies to all loved ones. In the past, parents or legal guardians could only claim the bonus for relatives under the age of 17. The bonus is now available for students, disabled adults and other dependent adults.
President-elect Joe Biden speaks out on January 14, 2021 at the Queen Theater in Wilmington, Delaware, on the public health and economic crises. (Photo by JIM WATSON / AFP via Getty Images)
If Biden's proposal is in line with the Democrats' $ 2,000 stimulus plan, which was only passed by Parliament in December, the income eligibility criteria would reflect the requirements for the current distribution of the $ 600 stimulus payments.
Payments would gradually decrease for those with an Adjusted Gross Income (AGI) greater than $ 75,000 for single applicants with no dependents and $ 150,000 for married couples with no dependents. The exit thresholds would change depending on the number of dependents in the household.
Read more: Do the following if you haven't received your stimulus check
Eligibility criteria for the $ 2,000 checks under the CASH Act based on estimates by the Federal Responsible Budget Committee.
Eligibility is likely based on your most recent tax return and gross adjusted income. For the second round of checks, the Internal Revenue Service used 2019 tax returns to determine who qualified for the direct payment.
The $ 2,000 stimulus checks would also mean a huge increase in income for America's poorest families. The 20% of households with the lowest incomes would increase their annual income by 29% if Congress passed the Democratic Incentive Review proposal of $ 2,000, the Institute of Taxes and Economic Policy (ITEP) found. The effect of Biden's plan would be similar.
For comparison, with the current payment of $ 600, the same group only increased 8%, while the direct payments of $ 1,200 last spring under the CARES Act increased their incomes by 11%.
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Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova.
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