The United States Congress is expected to pass the third round of stimulus payments, meaning most Americans can expect another cash infusion in the coming weeks.
Will you get a check?
Individuals earning up to $75,000 per year, or couples earning up to $150,000 per year, are eligible for the full $1,400 per individual benefit. Head of Household filers who make $112,500 or less and have at least one dependent receive the maximum sum.
The bill making its way through the Senate has decreased the phase-out amounts passed by the House on February 27th. Single filers earning $80,000 or a couple earning $160,000 gets nothing.
How will the IRS calculate my earnings?
It will use the most recent adjusted gross income in its system. If you’ve already filed a tax return for the year 2020, it will use that income. If you haven’t filed your taxes yet this year, the IRS will use your income from 2019.
Should I file my 2020 tax return now or later?
It’s fine to wait to file if you qualify for a larger stimulus check based on your 2019 income rather than your 2020 earnings. However, be sure to file and pay your taxes by April 15th to avoid penalties and fees.
When and how will I receive my payment?
The IRS has yet to confirm a date for the payments to be issued. In the previous two rounds, the department first sent direct deposit payments to those it had bank information on file, then mailed paper checks or pre-loaded debit cards to everyone else. In the first round in March 2020, the IRS took about two weeks to process the payments. In round two in December 2020, it only took a few days after the bill was signed into law.