Get Ready To Breathe Again As Third Stimulus Check May Be Imminent
If you’ve been holding your breath waiting and hoping for a third stimulus payment, you may be able to breathe a sigh of relief again very soon. The details of a possible third stimulus payment are being hammered out in the House of Representatives. And there’s a good possibility that a bill might be approved, and deposits made and checks sent out before the tax filing deadline. In fact, the powers that be are hoping the bill will be passed by Congress as early as February 26th, and that the first payments will be deposited and mailed within the first two weeks of March.
A Bigger Check Could Be A Real Life-Saver
The good news is that this next round of stimulus payments might be more substantial than the first two. Congress is looking at approving a $1400 payment per taxpayer and dependent. For many households that represents a significant and very possibly life-saving increase.
Fortune magazine reports that, “For each dependent (both children and adults), eligible Americans would receive a $1,400 check under the House Democrats’ draft. That is a big change from the past two rounds, which paid out only for child dependents. A married couple who file jointly with an income under $150,000 and two child dependents would be eligible for $5,600, whereas in the CARES Act passed in March 2020, that same family would have received $3,600.” https://fortune.com/2021/02/09/third-stimulus-check-update-3rd-round-checks-irs-payments-1400-when-who-gets-house-democrats-eligibility-plan/
Who Will Get The Payment
One thing that seems to be holding things up is trying to determine who will receive the payment. There is talk of ferreting out those in a higher economic bracket in an effort to target those who need it most. For instance, they are considering not giving the stimulus to anyone who makes $100,000 or more per year.
According to information at cnet.com, “The conversation around a “targeted” stimulus check seeks to send the payment to lower- or middle-income households, excluding upper income people from receiving any check at all, even a partial payment.” https://www.cnet.com/personal-finance/this-is-how-your-third-stimulus-check-could-be-targeted/
The article goes on to say, “Specifically, the next check could accomplish this by: 1)Enforcing an absolute cutoff to the upper limit for receiving a payment. 2)Changing the stimulus check formula so that dependents do not give households that exceed the income limit a partial payment, as they did before. Or 3) Altering the “reduction rate” in the stimulus check formula to reduce the number of people who’d get a partial payment.” https://www.cnet.com/personal-finance/this-is-how-your-third-stimulus-check-could-be-targeted/
Filing Your 2020 Taxes Could Mean Quicker Stimulus Payment
As always, the IRS uses the most current information it has for each taxpayer. So getting your taxes filed and making sure you have your current banking information included for deposits is going to make it easier for the IRS to get your stimulus payment to you. It’s always a good idea to file your taxes sooner than later for a multitude of reasons. This year, the stimulus is motivating enough for many taxpayers. Tax scams come in as a close second. Even if you owe taxes and can’t pay them, filing is important. There are going to be many more people who won’t be able to pay their taxes and I’m pretty sure the IRS wants to get this stimulus bill passed in order to help taxpayers out.