If you’ve lost your job or your income has dropped during the pandemic, filing your taxes immediately can get you the maximum payment
WASHINGTON – Democratically controlled Congress is about to pass its largest round of coronavirus stimulus payments and keeps an election promise made by President Joe Biden.
If the $ 1.9 trillion Covid-19 relief bill is passed and goes into effect, it would enable the third round of economic reviews – after the $ 1,200 payments made in March last year and the payments made in $ 600 in the December bill signed by President Donald Trump.
The Senate tweaks the House version of the bill, which is most likely to become law despite Republican opposition. It is still possible for some details to change before the process is complete and you run out of money.
For now, however, there are a few questions and answers about how payments would work under the Senate Act.
Why $ 1,400? Biden promised $ 2,000
He promised $ 2,000 in payments – but in connection with the increase in payments in the December bill, which the Republicans limited to $ 600. Biden says the $ 1,400 checks would deliver on the promise if added to previous payments.
OK who will get the money?
Individuals earning less than $ 75,000 or heads of household earning less than $ 112,500. Married couples filing their taxes together are both entitled to the full amount if they collectively earn up to $ 150,000. (Couples would get $ 2,800.)
Individuals earning $ 75,000 to $ 80,000 would still receive checks, but less than $ 1,400. The same goes for heads of household who earn $ 112,500 to $ 120,000 and couples who make $ 150,000 to $ 160,000.
If you do more, you won’t get any payments.
What about my kids
In addition to the adult amounts, parents would receive $ 1,400 more for each child on their tax returns. This includes adult children such as college students and those with permanent disabilities, as opposed to last year’s stimulus payments.
So if you are a family of four with a household income less than $ 150,000, you should get $ 5,600.
Some people who last got cash, wouldn’t they do it now?
Right. Biden agreed with demands from moderate Senate Democrats to “aim” the checks more tightly, meaning that individuals making $ 80,000 to $ 100,000 (and couples making $ 160,000 to $ 200,000) would not get paid.
What if I lost my job last year and now I earn less?
This is important: people who have lost their jobs or whose income has decreased in the past year for any reason should file their tax return as soon as possible in order to receive the maximum payment. If the IRS processes your new return until the checks run out, that is the income on which the payments would be based.
Failure to submit in time will be based on your 2019 income – before the pandemic broke out.
And what if my income has increased over the past year?
Then you could probably get a bigger check waiting for your tax returns to be expired. As long as you made less than $ 80,000 in 2019. But don’t wait too long either – the deadline for filing tax returns is April 15th.
Would it come by direct deposit or check?
When the IRS has your bank account details on file, the funds will be deposited by direct deposit. (In the previous rounds this was the quickest way.) If not, a paper check will be sent to your address. All you would have to do is make sure it has your most up-to-date information.
If it’s a paper check, will Biden sign it like Trump?
Not clear. A White House spokesman declined to comment.
Do I have to pay tax on the payments?
No.
I am not a US citizen, but I am a legal resident. Would I Qualify?
Yes, if you have a social security number.
I live in the US illegally and pay taxes. Would i get a check?
No, you need a valid social security number. An individual tax identification number would not count.
What if I am married to an undocumented immigrant?
You would get a payment and your spouse wouldn’t. The same goes for your children – any family member with a Social Security number would receive a payment, and those who lack one would be excluded.
I owe child support. Could you take my check?
If you owe the federal government child benefits or student debt, you should be protected from attachment. However, debts to private entities are not protected due to the Senate’s secret rules governing the process. (That’s a change from last year when Congress used a different process that didn’t have this limit.)
OK. When would this bill become law?
Democrats say they want it to be signed by March 14th and that’s still realistic. The House has adopted a version. The Senate is well on its way to passing it in the coming days, barring any surprises. Then the House would have to vote again to pass the Senate version before it could go to Biden’s desk.
And how soon would the payments go out?
The IRS has done this a few times already, so it should be able to move quickly. But there is no precise timeline. Keep an eye on your bank account or mailbox after Biden signs the bill.
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