House Democrats have approved a sweeping $1.9 trillion COVID-19 relief package that will direct a third round of stimulus payments to most tax-paying Americans. The bill, known as the American Rescue Plan Act, was passed Wednesday by a vote of 220 to 211, with every Republican voting against the stimmy checks and all but one Democrat voting in favor.
The legislation will extend federal unemployment insurance benefits through Sept. 6, 2021 at a $300 weekly rate, expand the child tax credit, and send direct payments to tens of millions of Americans who meet the income requirements.
President Joe Biden is expected to sign the legislation on Friday. Once the bill is signed into law, the Internal Revenue Service will begin distributing stimulus checks to eligible households within days.
Here’s what you need to know about the upcoming payments.
The American Rescue Plan will provide $1,400 stimulus checks to individuals and $2,800 to couples. Those who are eligible will also receive $1,400 for each dependent; for example, a couple who meets the income requirements will receive $2,800 in addition to $1,400 for every child within the household. Unlike the first two stimulus payments, families will receive the additional payment for dependents who are also over 17.
The full $1,400 payment will go to single filers who earn less than $75,000 of adjusted gross income; those payments will decrease for individuals who make closer to $80,000. Earners above $80K will not get stimulus checks. The payments will based on recipients’ most recent tax returns.
Single parents and other heads of households earning less than $112,500 are also eligible for the $1,400 checks, with payments lessening for those whose income nears the $120K mark. Married couples who earn $150K or less will also receive the full $2,800 checks, but the payments will diminish as adjusted gross income rises. Couples who receive earn at least $160K will not be eligible.
President Biden says the checks will likely be disbursed later in March, shortly after he signs the legislation. The second round of stimulus checks was sent just three days after former president Donald Trump signed the bill back in December; however, some say tax season might cause a delay.
Americans whose bank information is filed with the IRS will likely see the money first, as the payments will be directly deposited into their accounts. Those who have not filed their bank information will get prepaid debit cards or paper checks in the mail.
If you meet the income requirements, you can check the status of your stimulus payment online. Taxpayers can access the IRS Get My Payment tool to find out when they can expect their money. All you have to do is provide your Social Security number, date of birth, home address, and zip code.
