The Likelihood of Another Stimulus and When To Expect a Check
With the stimulus resolution passing the Senate over the weekend and the House set to vote on Tuesday, many people wonder whether the government will come through for the millions of Americans still reeling from the economic effect of the pandemic. The good news for those people wondering if help is on the way is that with a Democrat-controlled Congress and the use of budget reconciliation, a third stimulus payment is likely. While the third round of payments is likely, when can you expect to see the money in your bank account or a check in your mailbox?
Despite having some differences from the original sent to the Senate, the bill is expected to pass with House support on Tuesday. If that happens, it is possible that President Joe Biden could sign it into law this week. The IRS is gaining familiarity with the deposit process and seems to speed up after every stimulus deal. If everything goes smoothly and as predicted, which is a big "if" in Washington DC, people could begin seeing deposits and checks by March 13th. However, while a possible timeline, it is not concrete, and not everyone will receive their payment so quickly, especially those who have not set up direct deposit with the IRS.
Changes To Income Thresholds
While the initial eligibility requirements for receiving stimulus payments were generous, the new bill approved by Congress has some changes. While individuals making $75,000 annually or couples making $150,000 per year still qualify for the full $1,400 payment, the cutoff to receive a payment is no longer $100,000 for the individual or $200,000 for couples. Under the revised bill, individuals earning between $80,000 and $100,000 per year and couples earning between $160,000 and $200,000 are excluded from the stimulus benefit. While the compromise angers some Americans, it was necessary to see that the majority of those in need receive the money they desperately need.
Updating Your Information
Have you filed your 2020 taxes yet? If not, you might want to consider doing so immediately, especially if your income dropped between 2019 and 2020, pushing you below the threshold. For example, suppose you were making more than $80,000 annually before the pandemic but saw a dramatic decline in your income in 2020. In that case, filing can ensure that you still receive the stimulus payment, but failure to file could mean you get nothing because the IRS is going off of your last taxes filed.
While many Americans continue to suffer financially during the current pandemic, it is crucial to take the steps necessary to secure the next stimulus payment because a fourth is unlikely given the current political climate. Many Americans are considering saving the money from the relief package, but remember that the purpose of the check is to invigorate the economy and ease current financial burdens. Saving is all well and good, but you might have some other monetary needs to meet as a retiree.
Do you already have plans for the third and potentially final stimulus check? Leave a comment below and spark a dialogue.