Stimulus checks: Here's who gets a $1,400 payment under the bill headed to Biden's desk
With a revised version of President Joe Biden's $ 1.9 trillion stimulus package passing the Senate and House of Representatives, the third round of the $ 1,400 stimulus check could soon hit Americans' bank accounts.
The Senate passed the aid package on Saturday, followed by the House on Wednesday. The legislation is expected to be signed by the President this week, with the Treasury and Internal Revenue Service announcing the next round of payments shortly thereafter.
"Under the Senate version of the law, 158.5 million households will receive direct payments," said Jen Psaki, White House press secretary, at a press conference Thursday. "That's 98% of the households they received in December."
Photo: Getty Creative
Around $ 450 billion of Biden's $ 1.9 trillion "American Rescue Plan" will flow directly into Americans' wallets. This round of stimulus testing would be $ 1,400 per eligible person plus a $ 1,400 bonus per dependent.
Here's what you need to know about the third round of stimulus testing:
Who gets a stimulus check?
According to the last amended bill, a single filer making up to $ 75,000 would receive full payment, while those making up to $ 80,000 would receive a reduced amount. Joint applicants earning up to $ 150,000 would receive the full $ 2,800, while those earning up to $ 160,000 would receive a lesser amount. Previously, the exit thresholds were $ 100,000 for single applicants and $ 200,000 for joint applicants in the house version.
Eligibility is based on your most recent tax return and your adjusted gross income. For the third round of checks, the Internal Revenue Service will use your 2019 or 2020 tax return to determine whether you qualify for the direct payment.
Social Security Beneficiaries, Disability Insurance Beneficiaries, Supplementary Security Income Beneficiaries, Railroad Retirement Board Beneficiaries, and Veterans Administration Beneficiaries are eligible for payment even if they have not filed a 2019 or 2020 tax return.
Read More: Here's what Joe Biden's $ 1.9 trillion "rescue plan" says that could help your wallet
Eligible taxpayers who used the IRS non-filer tool for the first round of checks will be treated as tax returns and will also receive payments.
In addition, Americans who qualify for the stimulus payment and have loved ones will receive an additional $ 1,400 per loved one. Students, disabled adults and other dependent adults are now eligible to claim the bonus. Previously, parents or legal guardians could only claim the bonus for dependent children under the age of 17.
The deceased can also receive payment. Checks are made to all eligible taxpayers who were alive on January 1, 2021.
Who doesn't get a check?
Individuals without a Social Security number and non-resident aliens - those who are not US citizens or US nationals and who do not have a green card or who have failed the Essential Attendance Test - are not eligible for direct payment.
Married taxpayers who jointly file when one spouse has a Social Security number and the other does not have a Social Security number will receive a payment of $ 1,400 in addition to $ 1,400 for each child with a Social Security number.
Taxpayers with individual tax identification numbers (ITIN) would not be eligible for the payments.
How will the government send you the stimulus check?
The IRS uses the direct deposit information you provided from the taxes you filed for 2019 or 2020.
You may be able to use the IRS non-filer tool to provide your information as you did the first round. However, so far the IRS has not announced whether this tool will be available when this stimulus bill is passed.
The tool was intended for eligible U.S. citizens or permanent residents who had gross income less than $ 12,200 in 2019 ($ 24,400 for married couples) and who did not need to file a federal tax return for 2019.
If you did not provide direct deposit information or the account provided is now closed, the IRS will send you a check or prepaid debit card instead.
If you haven't received a payment and believe you are eligible or have received the wrong amount, you can claim it on your 2021 tax return.
The Yahoo Money sister site Cashay has a weekly newsletter.
Do you have to repay the stimulus check?
No, you don't have to pay it back. It also doesn't reduce the refund you would otherwise get.
"No, there is no provision in the law that requires a payment to be repaid for economic impact," the IRS website said of the first round of checks.
If your income was down in 2020 compared to 2019, you may be eligible for the payment or a higher payment if you have already filed your taxes and have been processed by the IRS.
If your 2020 income is too much for your payment and you have not yet filed your 2020 taxes, you will not be responsible for paying back the difference.
Denitsa is a writer for Yahoo Finance and Cashay, a new personal finance website. Follow her on Twitter @denitsa_tsekova
Stock market highs, booming real estate, and millions of unemployed: A story of two Americas amid the coronavirus pandemic
Senate passes Biden's $ 1.9 trillion bailout package, including $ 1,400 stimulus checks
Jobs are not recovering for black Americans - and it could be worse than reported
Read more Cashay personal financial information, news, and tips
Follow Yahoo Finance on Twitter, Facebook, Instagram, Flipboard, SmartNews, LinkedIn, YouTube and Reddit.
Mention your own website in this post for Advertisement
Harry Reid on former House Speaker John Boehner: 'I did everything I could to cause him trouble' but we 'got a lot done'
Pete Buttigieg To Reluctant Evangelicals: 'Maybe A Vaccine Is Part Of God's Plan'
David Hogg Steps Back from Company He Founded to Compete with Mike Lindell’s MyPillow
A disgruntled ex-employee left a trail of destruction in a Walmart store when he drove his car through the front doors and up the aisles
Thousands of low-level U.S. inmates released in pandemic could be headed back to prison
Biden’s budget proposal is ‘the most reckless fiscal policy in the last half-century’: economist