As the House approves the 1.9 trillion dollar coronavirus relief bill, Google search works overtime trying to answer questions that you may have about the 1,400 dollar stimulus check.
Let’s break down what the plan could mean for you – who is eligible for the third stimulus check, how it will be calculated and how soon you may get it.
Who is eligible for the third stimulus check?
Individuals who make less than 75,000 dollars in their adjusted gross income (AGI) and married filers who earn a combined 150,000 dollars would be eligible for the full 1,400 or 2,800 dollar payments, respectively. For example, a married couple earning 140,000 dollars jointly with one child and one adult dependent would receive 5,600 – 1,400 dollars multiplied by four.
The eligibility for this round of stimulus checks has been tightened meaning that many high-earned taxpayers who were eligible for previous stimulus checks will now be excluded from receiving the 1,400 dollars. The approved bill narrows income eligibility to exclude individuals earning over 80,000 dollars and couples making over 160,000 dollars. The bill phases out:
-Singles at AGIs 75,000 and 80,000 dollars
-Heads of household at AGIs between 112,500 and 120,000 dollars
-Couples at AGIs between 150,000 and 160,000 dollars
The IRS reduced second stimulus checks by five percent for the total amount made over the AGI limit. This means that payments went down by five dollars for every 100 dollars over the limit.
The table below breaks down third stimulus payments based on the narrower income ranges that were approved by Congress for singles and joint tax filers:
1,400 dollar stimulus checks with narrower income ranges
Single AGI – Payment – Joint AGI – Payment (all in USD)
75,000 — 1,400 — 150,000 — 2,800
76,000 — 1,120 — 152,000 — 2,240
77,000 — 840 — 154,000 — 1,680
78,000 — 560 — 156,000 — 1,120
79,000 — 280 — 158,000 — 560
80,000+ — 0 — 160,000+ — 0
How soon could you get the third stimulus check?
As soon as the bill gets signed into law, the Treasury Department will start distributing the third stimulus checks within one week or two. For reference, the 600 dollar second stimulus checks started going out to taxpayers on December 29, 2020, two days after President Trump signed the 900 billion dollar COVID-19 stimulus package into law.
The bill is on track to become law by March 15, which means that the first batch of payments will begin to go out before April 1. Tens of millions of direct deposit recipients could receive a check before April 1, followed by staggered start dates for physical checks and EIP cards.
But that’s only for the dates the IRS will begin to send checks. It could take weeks for the IRS to process every group’s funds and more time for the transactions to go through, especially if you’re issued a paper check or EIP card. Any additional complication could delay your payment. The schedule below reflects our best guesses, based on the IRS’ timeline for the 600 dollar stimulus check.
Stimulus check: Potential delivery dates
Stimulus check passes Congress: March 9-10
Stimulus bill signed into law: March 10-13
First direct deposit check sent: Week of March 17-Week of March 22
First paper checks sent: Week of March 24-Week of March 29
First EIP cards sent: Week of March 31-Week of April 5
IRS deadline to finish sending checks: December 31
Claims for missing stimulus money open: Likely 2022
How much will the third stimulus check pay?
Biden’s 1.9 trillion dollar coronavirus relief bill includes a third round of 1,400 dollar stimulus payments, topping off the 600 dollar checks that were already approved by Congress in December 2020, and adding up to 2,000 dollars.
Congress passed a coronavirus relief bill that includes stimulus payments for individual taxpayers earning up to 75,000 dollars and joint filers making up to 150,000 dollars. The bill for the third stimulus check says that eligibility will be based on your tax filing status.
How Will the third stimulus check be calculated?
The stimulus bill mandates the treasury to rely on 2019 and 2020 tax returns to calculate how much you could get for the third round of stimulus checks.
Congress approved limits based on adjusted gross income (AGI) ranges. This means that taxpayers making less than the minimum threshold could get the full stimulus check, while those earning above it will get reduced payments until they are fully phased out at higher incomes.
This is calculated by subtracting deductions like student loan interest, health savings account payments, and contributions to a traditional IRA from your gross income.
Your 2019 taxes had to be filed by July 15, 2020. And your 2020 taxes will be due by April 15, 2021. You can read more about when to file your tax returns for the third stimulus check, and other IRS requirements in two tax sections below.
Here are some useful calculators that can help you figure out how much you will receive: Third stimulus check calculator
Will eligibility requirements change for dependents?
The new stimulus bill expands eligibility to adult dependents, including college students, elderly relatives and disabled adults.
While the bill pays out 1,400 dollars for each qualifying dependent, families should keep in mind that the targeted lower income ranges will exclude them if they earn over $160,000.
With the new stimulus plan, however, both joint filers and heads of household will get an additional 1,400 dollar payment for each dependent, regardless of age.
Stimulus checks for heads of household and one dependent
AGI – Payment (all in USD)
112,500 – 2,800
114,000 – 2,240
115,500 – 1,680
117,000 – 1,120
118,500 – 560
120,000+ – 0
How could third stimulus checks be sent and tracked?
The IRS will make payments via direct deposit, paper check and prepaid debit cards.
The third stimulus payments however could be delayed. In January 2021, as many as eight million eligible recipients did not get their first or second stimulus checks. Biden signed an executive order on January 22, asking the Treasury Department to deliver direct payments to all qualifying recipients.
You will be able to follow up on the status of all your stimulus payments on the IRS’s “Get My Payment” portal.
Keep in mind that if you collect Social Security retirement benefits, Social Security survivor benefits, Social Security disability benefits, Supplemental Security Income (SSI), Railroad Retirement benefits and VA benefits, you could automatically get a third stimulus check via direct deposit as long as you have your bank account on file with the IRS.
The agency also mailed out letters (Notice 1444-A and Notice 1444-B) to eligible recipients for the first two rounds of stimulus checks, breaking down the amounts of the payments, how they were delivered and how to report them if they were not received.
Keep in mind that the IRS does not consider stimulus checks to be taxable income. This means that you will not have to report the money on your federal income tax return, or pay income taxes on your stimulus check.
Read More: Third stimulus checks: potencial delivery dates, timeline, eligibility, taxes and more