President Biden signed a $1.9 trillion in new coronavirus relief into law on Thursday, which means $1,400 stimulus checks could reach Americans in the next few days.
“People can expect to start seeing direct deposits hit their bank accounts as early as this weekend,” White House press secretary Jen Psaki stated on Thursday.
“Payments to eligible Americans will continue throughout the course of the next several weeks,” she continued.
The checks will be a maximum of $1,400 per individual, or $2,800 per married couple, plus $1,400 per dependent.
For many, the stimulus checks can’t come soon enough. While the majority of payments are going to be made via direct deposit, others will receive the funds in the mail, in the form of paper checks or as debit cards.
If you receive the money by mail, you will probably see some differences in what the U.S. Postal Service drops in your mailbox this time around.
The first two stimulus checks had former President Trump’s name on them, but you won’t see President Biden’s signature on this latest check.
“We are doing everything in our power to expedite the payments and not delay them, which is why the President’s name will not appear on the memo line of this round of stimulus checks,” Jen Psaki, said during her briefing last week.
Alternatively, the checks will be signed by a career official at the Bureau of Fiscal Service, which is working with the IRS to deliver the money. Some people will receive a debit card instead of a paper check. In such cases, it’s important to note, the money will not be added to cards that were previously sent. Instead, a new card will be issued.
After some people mistook the first stimulus issued debit cards for junk mail, the deliveries should be more clearly labeled this time. If you’re expecting to receive these funds, be on the lookout for a white envelope that’s clearly marked.
“People really just need to be looking for that kind of an envelope from the IRS and just be vigilant in checking their mail this week and the next few weeks,” said Amy Hanauer, executive director at the Institute of Taxation and Economic Policy.
Like past direct payments, this third round will be based on income.
The income limits for those to receive the maximum amount will remain the same. Individuals who earn up to $75,000 in adjusted gross income, heads of household with up to $112,500, and married couples who file jointly with up to $150,000 will get the full $1,400 per person.
The $1,400 checks will generally be based on either 2020 or 2019 tax returns, depending on the most recent filings that have been processed by the IRS. The government will also send payments to any non-filers it has on record.
Here’s a breakdown of the payments:
The $1,400 payments will also go to eligible dependents. This time, that includes those ages 17 and up. The money will be sent to those adults who claimed the dependents.
As with past checks, individuals will need a valid Social Security number in order to qualify. So, if you filed your taxes with an Individual Taxpayer Identification Number, or ITIN, you do not qualify.
For married couples where one spouse has a Social Security number and one spouse has an ITIN, only the spouse with the Social Security number will get a payment. Their children will also qualify, provided they also have valid Social Security numbers.
People who were alive as of Jan. 1 will qualify.
People with unpaid debts
People who have unpaid private debts, excluding outstanding child support payments or tax debts, could be at risk for having their stimulus checks garnished.
That’s due to the fact that lawmakers used a process known as budget reconciliation to pass the coronavirus relief package which limited their ability to prevent garnishment of the payments. However, banking and consumer trade groups have called for follow-up legislation to change that.
If you miss out this year
If you don’t receive a $1,400 payment or a reduced check, you may be able to claim the money you are due when you file your taxes next year.
That also goes for this year’s tax-filing season for people who missed out on the previous $1,200 or $600 payments. You can claim a recovery rebate credit to recoup any money you were possibly owed. This is also available to people who typically do not file tax returns because their income is too low.
The IRS website also provides information at: www.irs.gov