Congress approved the third, and most likely, the last stimulus checks for Americans. The coronavirus stimulus check started rolling out over the weekend, as per the White House. If you haven’t yet received the stimulus check, don’t panic, here’s everything you need to know.
Q4 2020 hedge fund letters, conferences and more
The $1.9 trillion package signed by President Joe Biden includes coronavirus stimulus checks of $1,400. Many eligible Americans may have already got the check in their bank account over the weekend, and many more will get it this week.
So, there is no need to panic if you didn’t get the check. On Friday, a Treasury Department official told reporters that the checks will continue rolling out in the "coming weeks."
Those who will get the direct payment in the form of paper checks or prepared debit cards will have to wait a little longer. The IRS is expected to start sending out paper checks or prepaid debit cards toward the end of this month.
Also, you can now start to check the status of your third stimulus check using the IRS Get My Payment tool.
Those eligible for the stimulus checks would get the payment automatically. Even those who don’t usually file taxes, such as Social Security recipients and those getting Veteran Affairs benefits would also get the payment automatically.
For those who file taxes, the IRS will refer to their 2020 tax return first. In case the user hasn’t yet filed their 2020 tax return, the agency will refer to their 2019 tax return to calculate the amount of stimulus checks.
This also means that those who saw their income drop in 2020 are likely to qualify for a higher amount than if their 2019 tax return was used, if they have already filed their 2020 return.
Other crucial details of the $1.9 trillion relief bill
Talking about the eligibility of the third stimulus checks, as in the previous two rounds, it all depends on your adjusted gross income (AGI) and whether or not you were considered a dependent. In terms of income, those with AGI of up to $75,000 would qualify for a full stimulus check, while those making $80,000 or more per year won’t be eligible for any payment.
Moreover, the latest legislation offers a payment of $1,400 to all dependents, irrespective of their age. This means a family of four could get stimulus checks of about $4,800. Along with the payment for a dependent, the new $1.9 billion bill also takes away the garnishment exemption for debt.
The first two stimulus checks prevented creditors from taking the check amount to pay for unpaid debt. However, the latest stimulus package doesn’t come with the exemption from garnishment.
Another important thing that eligible people need to know is the child tax credit. As per the experts, the one-year expansion of the child tax credit could mean families could potentially receive $3,000 to $3,600 in payments.
