New stimulus checks worth $ 1,400 could come. What we know about how fast they can arrive

Hill Street Studios | DigitalVision | Getty Images

As Congress works to work out a deal for a new coronavirus relief law, it could mean new stimulus checks for millions of Americans.

New direct payments of $ 1,400 are among the grants expected to be included in the package. The proposal also includes other measures to help Americans cope with the ongoing pandemic, such as: For example, better federal unemployment benefits and an increase in the federal minimum wage to $ 15 an hour.

Currently, the terms provide for direct payments of $ 1,400 per person or $ 2,800 per couple and $ 1,400 for dependent children and adults.

More from Personal Finance:
The students lament Biden’s refusal to cancel $ 50,000 in student debt
At the start of tax season, many still wonder where their $ 600 stimulus check is
The child tax credit proposal could be more of a help than an incentive for families

Payments would be based on the same income thresholds as the first two checks. Individuals with Adjusted Gross Income up to $ 75,000, Heads of Households up to $ 112,500, and married couples filing together up to $ 150,000 would receive full payments.

But the controls would be phased out for those with incomes above these levels. This time around, they would be limited to individuals earning $ 100,000, heads of households earning $ 150,000, and married couples earning $ 200,000.

The coronavirus stimulus package works its way through a budget vote by the House and the Senate. This process prevents major changes to the plan, although the final numbers could change.

Some lawmakers have pushed for the loss of income to be reduced to $ 50,000 or $ 60,000 in order to better target those in need of the money.

“These details are not final and could be further adjusted,” wrote Ed Mills, policy analyst with Raymond James in Washington last week, “but so far there has been little pressure on moderate Democrats seeking higher levels of goal setting for higher income . ” Payee. “

Estimated payment schedule of $ 1,400

The legislation is expected to be final in early to mid-March.

At this point, the IRS will be well into tax filing season, which could make it harder for the tax authority to process both payments and incoming returns, said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.

Last year, the first $ 1,200 stimulus checks were also approved during tax season. Ultimately, the deadline for filing taxes was extended from April 15th to July 15th.

Still, the IRS was able to process the majority of those $ 1,200 payments in a matter of months.

“They did a great job, much better than we ever imagined, and in particular pulled out the first round of economic impact payments,” said Gleckman.

This time around, the Democrats have suggested that controls be based on either 2019 or 2020 returns.

This could create an incentive for early filing, especially if your income fell in 2020, which could increase the size of your check, Gleckman said.

If instead the IRS is using your 2019 information and you qualify for more cash based on your 2020 income, you may have to wait a full year until the next tax filing season to get the rest of your amounts due, he said.

Alternatively, if your 2019 income was less than 2020, you could get a larger check if the IRS used last year’s filing.

As with the first two stimulus checks, the majority of payments will likely be sent by direct deposit to those whose banking details are already on file with the IRS. Based on previous checks, this money could arrive within days of the legislation being finalized.

The remainder of the direct payments are made by mail either by debit card or by check. It can take several weeks for these payments to be received.

“The good news is that there is a little more infrastructure and a more formal process for doing this than at this time last year because they went through it twice,” said Garrett Watson, senior policy analyst at the Tax Foundation.

One placeholder that could impact the IRS workload is a suggestion to expand the child tax credit. When passed along with the current relief bill, the IRS can dispatch families who qualify for monthly payments of up to $ 300 per child.

On Tuesday, the IRS announced it had mailed out all of the “legal” first and second stimulus checks and is now focusing on tax filing season.

The tax agency sent more than $ 160 million in 1,200 stimulus checks for a total of more than $ 270 billion. It has also sent more than $ 147 million, $ 600 in direct payments totaling more than $ 142 billion.

Comments are closed.