The American Rescue Plan, a $1.9 trillion spending bill, has just passed the House and will be signed by the president. This bill has the $1,400 stimulus checks that many have been waiting for – but, not everyone that thought they would get one will be getting one. Here is how much money you can expect from this latest stimulus bill.
New Stimulus Bill – the American Rescue Plan
This bill had originally been passed by the House of Representatives at the end of last month and then went to the Senate. The Senate made some modifications to it which required it to be sent back to the House. They just passed it and it now heads to President Biden’s desk for his signature. So, out of the $1.9 trillion, how much you will you get?
How Much Money Will You Get?
There will be many that did get money in the last two stimulus bills that will not get anything this time. That is because the threshold for the cut-off has been reduced. For example, a single filer that made $81,000 (adjusted gross income) in the last bill would still get money since the cut-off was $99,000. Over $75,000, it was phased out until it was gone at $99,000. This time, that cut-off is $80,000 for single filers and $160,000 for couples filing together.
This means that if you lost your job or income in 2020 and previously had over those amounts in 2019, you will want to get your 2020 return as soon as possible. That way, you will make sure you get something from it.
This calculator was made by Jasmine Mah, the same creator who made the previous calculators that many found helpful here on the site.
One big change this time from the last bills is that adult dependents will also be eligible for the $1,400 this time. In the last two bills, dependents over the age of 17 did not receive their own amount nor did the people who claimed them.
When Will You Get the Stimulus Money?
President Biden will sign this shortly and it is expected that direct deposit payment could start going out into bank accounts as soon as next week. Checks and debit cards will follow. Last year, it took months to get them all out but the IRS has made improvements in this area and the second round went out much quicker.
Within the next week, there will likely be another IRS page setup to help you make sure that your information is correct and also to check on the status of your stimulus payment.
Of course, this does not take up all the $1.9 trillion. There are many things in this package that many lawmakers were not happy with since some of them have nothing to do with the coronavirus and its economic impact.
But, one of the things it does include is a hike on the child tax credit. This year only, it goes up from $2,000 to $3,000 ($3,600 for children under 6). If you choose (there will be a website setup shortly where you can make this selection), you can choose to have half of that paid out from July – December, $300 per month per child. Otherwise, you will get the full amount with your 2021 return next year.
Another part that is in this bill is the continuation of unemployment benefits, $300 per week instead of the original $400. This should take place quickly so the benefits set to expire March 14 will just roll on with this new bill.
For sure, there are many people that are elated and also many people that are upset with this new stimulus bill. One thing I do know is that many actions taken in the last year due to the coronavirus situation have caused many jobs to be lost and this has directly impacted many families. For those in this situation, hopefully this will help them a bit as they hopefully are able to get new jobs (or their old jobs) soon. I know this can be a hot political topic and I certainly don’t want to turn it into that – just trying to get information out on the amounts and timing for the many people who have visited this site over the last year to find such information.