Third Stimulus Check: What Should You Know
Third Stimulus Check: What Should You Know
On March 11, 2021, President Joe Biden signed a $1.9 trillion American Rescue Plan that would provide another round of federal stimulus checks to millions of Americans. The $1.9 trillion bill includes various provisions such as the $1,400 third stimulus check, $400 unemployment weekly bonus checks, and many more.
In this post, we will tell you about the various provisions included in the $1.9 trillion bill and who qualifies for the third round of stimulus checks.
More About The Third Stimulus Bill
The Third Stimulus Bill was passed by the House of Representatives in February 2021. The lawmakers wanted the bill to come into effect before March 14, 2021, as some COVID-19 unemployment benefits. After weeks together of negotiations and discussion, President Joe Biden signed the $1.9 trillion American Rescue Plan on March 11,2021.
The American Rescue Plan provides a $1,400 direct payment to the Americans. It also includes the following provisions:
- Support for landlords and renters
- $130 billion for K-12 education
- 100% subsidy of COBRA health insurance premiums for the unemployed people
- Increase in the Child Tax Credit (for dependents) from $2,000 to $3,600 for children under the age of 6 and $3,000 for children ages 6 to 17
- 15% increase in Supplemental Nutrition Assistance Program (SNAP) benefits through September 30, 2021, provides $1 billion for nutrition assistance programs in the United States, and $1.15 billion to states for SNAP administration
- $350 billion in aid to states, cities, tribal governments, and U.S. territories
- Extension of the Pandemic Unemployment Assistance (PUA) benefits of $300 a week through September 6, 2021 and increases the total number of weeks available from 50 to 79
- Additional funding for people with mortgages, rent, and utility bills
- $50 billion for additional COVID-19 testing and contact tracing, $19 billion for increasing the size of the public health workforce
- $16 billion for vaccine distribution and supply chains
Who Qualifies For $1,400 Payment?
The third stimulus check would keep the income limit the same for the first and second checks. But because the third checks are expected to max out at $1,400 — $200 more than the first round, some people who didn’t qualify for previous stimulus checks can hope to get a small amount this time.
Here’s the income limit to be eligible for the full amount under the third stimulus bill based on your Adjusted Gross Income (AGI).
|Type of taxpayer||Full $1,400 per person maximum (based on AGI)||Not eligible (based on AGI)|
|Singles||Less than $75,000||$100,000 or more|
|Head of household||Less than $112,500||$150,000 or more|
|Married couple filing jointly||Less than $150,000||$200,000 or more|
Dependents over age 16 who were not eligible for the first and second checks may qualify for the third check. That is, college students, older adult relatives, and people with certain disabilities may receive a check as part of the household total. Similarly, those who file jointly and earn $198,000 may get $112, and heads of household earning $137,000 may get $486.
The new bill has also expanded the qualifications to include mixed-status families, where at least one member has a Social Security number.
When Will You Get A $1,400 Check?
The Internal Revenue Service may begin rolling out payments in a few weeks. If you are expecting payments, you can track its status using Get My Payment tool.
How Will You Receive The Third Stimulus Check?
You may receive the non-taxable $1,400 stimulus checks by direct deposit with the Internal Revenue Service (IRS). If you don’t have direct deposit with the IRS, you may receive a check or debit card in the mail.
Why File Your Taxes At The Earliest?
The IRS started accepting tax returns on February 12, 2021, with the filing window closing on April 15, 2021. That means the agency may start rolling out $1,400 stimulus checks in the middle of tax season. If you don’t file your 2020 tax return before the new bill is passed, the agency will rely on your 2019 tax return to calculate your stimulus amount, and the 2019 return might reflect your loss in any income in 2020 or a new child.
But by filing for a 2020 tax return sooner, you may be able to claim the extra money on Form 1040s through the Recovery Rebate Credit or an adjustment between what you got from the IRS versus what you are entitled to.
The Third Stimulus Bill can help millions of Americans to make it through the tough times while boosting the economy. As mentioned above, the IRS may begin rolling out payments soon, therefore, keep an eye on your bank account and check your mails regularly for payments.
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