Coronavirus stimulus checks: Who gets money and when?

Who gets the $600 stimulus checks and when

Coronavirus stimulus checks: Who gets money and when?

A new round of financial relief has finally been green-lit by the government and should flow to millions of Americans weathering the COVID-19 economic crisis soon.

President Donald Trump on Sunday signed the $900-billion coronavirus relief package, legislation that passed in Congress early last week. Trump delayed signing the bill for days but relented Sunday to avoid a government shutdown and finally allow aid to reach those in need.

A highlight of the new legislation is direct payments of $600 for eligible individuals — similar to the $1,200 payments that went out in the spring through the CARES Act. Here is what to know about who can expect to receive a payment and when.

A man walks his dog as the sun rises over the U.S. Capitol, Dec. 28, 2020 in Washington, D.C. President Donald Trump signed the Relief Bill and government funding bill into law Sunday night, averting a government shutdown.

Who is eligible for the $600 checks?

The new agreement designates a $600 direct payment for every individual who made up to $75,000 last year, a $1,200 payment for couples who made up to $150,000 as well as an additional $600 per dependent child. A family of four under the income threshold can expect to receive $2,400 in direct payments.

The payments are phased out for higher income levels and phase out completely for individuals who made above $87,000 in 2019. You can calculate how much you will ly receive from the COVID-19 relief bill using the guidelines spelled out in the bill here.

While the current bill shells out $600 direct payments, Trump is pushing to bring that amount to $2,000 — a proposal that has support from Democratic lawmakers but has been rejected by GOP leadership.

House Speaker Nancy Pelosi on Monday is bringing a vote on a stand-alone bill to increase economic impact payments to $2,000 to the House floor. While it’s expected to pass the House, it’s unclear whether Senate Majority Leader Mitch McConnell will take up the measure in the Senate.

A booklet describing unemployment benefits sits on a desk, Nov. 5, 2020, in North Andover, Mass.

When can Americans expect to see the checks?

People will begin to see the money roll in pretty quickly, according to a press release from the Internal Revenue Service and Treasury Department.

The first direct deposits could arrive as early as Tuesday night, and they will continue into next week. Paper checks will start to be mailed on Wednesday, the Treasury Department said.

The official payment date is Jan. 4, though.

It took approximately two weeks for direct deposits to roll out to Americans during the first round of stimulus through the CARES Act in March, though the wait was much longer for those who didn't file taxes last year or opted for another option to receive the relief.

Last Monday — before the president threw a wrench in the process by delaying his signature — Treasury Secretary Steve Mnuchin said that Americans who qualify should expect to see money in their accounts as early as this week and pledged a speedy process.

“The good news is this is a very, very fast way of getting money into the economy,” Mnuchin assured in a phone interview with CNBC on Dec. 21. “Let me emphasize: people are going to see this money at the beginning of next week.”

Also prior to Trump's delay, a Democratic aide briefed on the plans told ABC News that the administration will work to make 130 million direct deposits by New Year's Day and then work to send out 10 million paper checks to eligible taxpayers each week.

The delay is expected to move that timeline back by approximately a week, though experts also caution there could be other hiccups that could impact when eligible Americans receive the payments.

The U.S. Capitol Building and Washington Monument are seen across the National Mall from the Lincoln Memorial as the sun rises on Dec. 27, 2020 in Washington, D.C.

Janet Holtzblatt, a senior fellow at the Urban-Brookings Tax Policy Center, told ABC News that the infrastructure for processing a second wave of payments is largely in place — but this is also the time of year when the Internal Revenue Service is gearing up for the 2021 filing season.

“Rolling out a second payments in combination with the start-up of the filing season — that raises new wrinkles,” Holtzblatt said. “It’s hard to imagine that the IRS (or any organization) could process payments to millions of people and simultaneously start up the new filing season without snafus occurring — either with the payments or in the filing season.”

Holtzblatt added that were it not for the preparation of the filing season as well as the holidays, “starting direct deposits to tax filers within two weeks of enactment — as was done in the spring — would seem plausible.”

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Источник: https://abcnews.go.com/Business/600-stimulus-checks/story?id=74933529

Third Stimulus Check: Calculate & Track Payment

Coronavirus stimulus checks: Who gets money and when?

A new coronavirus relief package totaling some $1.9 trillion and including a third round of stimulus payments has become law. Here's a rundown of how much money you might soon get in a third stimulus check, how that IRS payment will arrive and when.

We're updating this page as new information becomes available.

How much is my stimulus payment?

The U.S. Treasury will disburse up to $1,400 per adult and $1,400 per qualifying tax dependent. A qualifying married couple with two kids could get up to $5,600, for example.

Who qualifies for a stimulus check?

Not everyone. Here's the income criteria:

  • Single filers whose adjusted gross income does not exceed $75,000 are eligible for the full $1,400 stimulus payment. The amount begins to shrink after that and phases out completely at $80,000.

  • Married couples who file jointly and whose AGIs do not exceed $150,000 are eligible for a full $2,800 stimulus payment. The amount begins to shrink after that and phases out completely at $160,000.

  • Heads of household whose AGI does not exceed $112,500 are eligible for the full $1,400 stimulus payment. The amount begins to shrink after that and phases out completely at $120,000.

No matter your IRS filing status, the stimulus payment includes up to $1,400 for every qualifying tax dependent you might have.

» MORE: See who can be a tax dependent

When will stimulus checks arrive? And in what form?

March 17 was the official payment date of the first batch of 90 million payments. Those payments largely went to people who provided direct deposit information on their 2019 or 2020 tax returns, according to the U.S. Treasury.

The second batch of payments has an official pay date of Wednesday, March 24. Many of those payments will be mailed in the form of paper checks or prepaid debit cards.

  • If you are eligible but don’t receive your check, you can claim the payment when you file your taxes for the 2021 tax year in 2022.

  • On February 16, 2021, the IRS said it finished sending out the previous two rounds of stimulus checks.

Here's the rundown of the forms of payment. Keep in mind, the form of payment this time around might differ from the form of payment for your first stimulus check.

Direct deposit

The IRS will use the account data in its system to make direct deposits. If you filed your taxes for 2020 and paid or received a federal tax refund with your bank account, that's where the stimulus check would go.

Paper checks and debit cards

If you received the first two stimulus payments but didn't receive them as direct deposit, you may get a paper check or a new debit card in the mail. The IRS will not reload debit cards you may have received for prior stimulus check payments.

Here's what the debit card and mailing envelope look , so you don't accidentally throw out your money with the junk mail.

Source: IRS.gov

Who doesn't qualify for a stimulus check?

  • People who don't have valid identification numbers. Everybody involved must provide a valid Social Security number (there are special rules for adopted children and members of the military).

  • Certain dependents. If you are a tax dependent on someone else’s tax return, the person who claims you as a tax dependent claims the payment.

  • People who died before January 1, 2021.

Do I have to file a tax return to get a stimulus check?

No, but the payment might not be for the correct amount if you don’t. If you haven't filed a tax return, the IRS will use other information it or other federal agencies may have on file to figure out what to send you.

The IRS will automatically send payments to people who didn't file a return but receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs benefits.

» MORE: See how to file your taxes for free this year

How do I claim my stimulus money if my payment doesn't show up or it's not the right amount?

If your 2020 tax return shows you “made too much” to qualify for this third stimulus check, you may not get a payment now even if you lost your job or income in 2021.

However, because these IRS payments are technically an advance on a 2021 tax credit, if your adjusted gross income in 2021 ends up being under the limit or you have another tax dependent, you might be able to claim the tax credit (or more of the tax credit) when you file your 2021 tax return (the one due in April of 2022).

If you were eligible for the first two stimulus checks (also called economic impact payments) but never received them or didn't receive the full amount, you have another chance to get that money by claiming the Recovery Rebate Credit on line 30 of form 1040 on your 2020 tax return (the one due by May 17, 2021). Page 58 of the instructions for form 1040 has a worksheet to help you calculate how much to claim.

» MORE: Learn how a Form 1040 works and how to fill one out

Do I have to repay my stimulus money?

No, unless you obtained your stimulus check fraudulently.

Will stimulus checks be taxed as income?

No. It's what's called a refundable tax credit.

  1. If you owe back taxes or child support, you’ll still get an IRS payment if you otherwise qualify. In this round, if you owe child support, your check will not shrink.

  2. If you haven’t filed a tax return in the last few years, the IRS may not have your current information and bank account details.

  3. If you don't qualify now, you might still get a break later. If your 2020 tax return shows you “made too much” to qualify for this third stimulus check, you may not get a payment now even if you lost your job or income in 2021. However, you might be made whole later (and don’t forget about filing for unemployment in the meantime).

    That’s because these IRS payments are technically an advance on a 2021 tax credit that’s available all year. So if your adjusted gross income in 2021 ends up being under the limit or you add a dependent, you might be able to claim the tax credit (or more of the tax credit) when you file your 2021 tax return (the one due in April of 2022).

  4. When it comes to the age limit for dependents, the legislation leans on the existing rules for claiming tax dependents. Under those rules, adult parents and college students you financially support might qualify under certain circumstances.

  5. Watch your mailbox and your bank account. For the last two rounds of stimulus checks, the U.S. Treasury sent people letters in the mail after it disbursed money to them. Those letters indicated how the payment was made, how much it was for and provided an IRS phone number for questions.

» MORE: Make sure scammers don't get hold of your relief check

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Источник: https://www.nerdwallet.com/article/taxes/coronavirus-stimulus-bill-payments

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