There is a third stimulus check coming in the amount of $1,400 for most of the recipients. A big step was taken this week so we have can expect to hear more about it soon. But, will you get one and, if you do, when could you expect it? Here is a look at some idea for both of those questions.
New $1,400 Stimulus Checks
Before the most recent stimulus checks (the second such checks), there was a last minute push to make it be $2,000 per recipient instead of the $600 it ended up being. So, now the goal for many of the lawmakers (at this point, a majority) is to get $1,400 checks out to make the total be the $2,000 – when combined with the second checks.
This week, the Ways and Means Committee advanced the part of the $1.9 trillion stimulus package that contained the direct payments for Americans to make its way to the full House. There are still other committee votes to be had about various parts of the overall package as well as the language that will decide what the stimulus amounts look like in the end. But, this was the first big step toward getting $1,400 checks out.
Will You Get One a Third Stimulus Check?
Part of the hangup for many lawmakers is over the threshold amount for the full $1,400. There are many that want to see the full amount more targeted and not going to people or households that were not financially impacted in the last year due to covid-19 issues and restrictions. Also, they would want to see it phased out at lower levels than the previous stimulus checks went out at.
At present, it looks like it would still be that individuals with an adjusted gross income up to $75,000 per year would get the full amount of $1,400 and couples filing together would be able to have an adjusted gross income up to $150,000 per year to get that full amount per person. After that amount, it would begin to be phased out.
There are also some lawmakers that want to see it lowered to start phasing out at $50,000 per individual and $100,000 per couple. This does not appear to have enough support to make its way through but something will need to compromised at some point as it will be a bit more difficult to get through the Senate at the current thresholds.
What Income Thresholds Will Be Used?
At this point, if you are a single individual filing and you make under $50,000 (in the most recent tax year filed under), you would get the $1,400. If you are a couple filing jointly and make under $100,000, you would also get the $1,400 per person. Of course, it could be very likely that those thresholds could end up being $75,000 for an individual and $150,000 for couples like last time.
Whaat will likely end up happening is that those previous thresholds would stay in place but the fall off would happen at a much more steep level, meaning that individuals making over the $75,000 mark and couples making over $150,000 would probably not see much from the package at all.
Adult Dependents Would be Eligible
One big part about this stimulus package that differs from the last two is that they are working to include adult dependents as eligible this time around. Under the previous two stimulus payments, if you had a dependent over the age of 17, they would not get any money through you and they could not get it on their own since they were claimed as a dependent. With this package, adult dependents would also be eligible for the $1,400.
When Could You Expect the $1,400 Check?
At present, the timeline looks like it would be sent to the Senate in early March and would likely be signed by President Biden by mid-March. It has already been said that they would work to get the checks out quickly after that. The last stimulus payments went out about one week after President Trump signed the law so the infrastructure is there to do it again at this pace.
This means that you could expect to start seeing the $1,400 stimulus payments going out around the middle of March. Those that received the last two via direct deposit would get them first and it appears that the IRS and Treasury Department may use debit cards increasingly more this time over checks (over 8 million were sent out last time).
So, the best estimate at this point seems to point to the middle of March being when stimulus payments could start going out. This is the best guess by many analysts as well.
What Could You Do Now?
The first stimulus payment was based on the most recent tax returns filed, either 2018 or 2019. The last stimulus payment was based on the 2019 tax returns.
It is now possible to file 2020 tax returns and if you saw your income impacted greatly in 2020, you should definitely think about filing sooner rather than later. Also, it would be best to file electronically.
This could be a big help to someone who may have made over either of the proposed thresholds in 2019 but saw their income drop sharply due to the coronavirus in 2020. By filing your 2020 returns (electronically), you would stand a better chance of having your next stimulus payment be based on the 2020 return instead of the 2019 return.
Regardless, you can always still file on your 2020 return if you did not get either of the previous stimulus payments or if you had a child in 2020. The same should be true for this next stimulus payment on your 2021 return if they end up using a return that has your income higher than it was for 2020.
Bottom Line
The $1,400 stimulus checks are one step closer to arriving to Americans. The biggest obstacle now is determining the threshold amount that will be used to determine who gets the full amount. In the first round of stimulus checks, the IRS sent out 30 million stimulus checks to households that had made $75,000 or more in previous years. Lawmakers may try to shave that number down to make this round more targeted, especially given the higher amount of the payment.
But, if you are a single individual making under $50,000 or a couple making under $100,000, you should be reasonably certain that you will receive the full $1,400. For everyone making between $50k – $75k (as a single filer) and $100k – $150k (as a couple), that is still up in the air as to whether you will receive the full $1,400 per person though it looks like you may.
Those $1,400 stimulus checks should start going out in around one month, based on the best estimates at this point of the process.
