The $1.9 trillion American Rescue Plan stimulus package has officially passed the House and Senate and is set to be signed into law by President Joe Biden by the weekend. And as many Americans already know, the bill provides funding for a third round of economic impact payments -- informally known as stimulus checks.
The new payments will be up to $1,400 for every qualifying individual and their dependents. And here are the most important points to know about them:
- Full payments will be sent to Americans whose adjusted gross income, or AGI, is below thresholds of $75,000 for single tax filers, $112,500 for heads of household, and $150,000 for married couples filing joint returns. And these income thresholds are based on 2020 income, or 2019 if the 2020 tax return has not been filed.
- Above these thresholds, eligibility goes away entirely for Americans with AGI above $80,000 (single), $120,000 (heads of household), and $160,000 (married couples filing jointly).
- Unlike the previous stimulus payments, all qualifying dependents of eligible taxpayers will receive a payment. This includes minor children, dependent college students, and other relatives claimed as dependents.
When should you expect your money?
That's the big question. President Biden has said that the payments could start to reach Americans before the end of March, and the Treasury started sending the last round of payments just a few days after the latest relief bill was signed into law. Just like with the other two stimulus payments, taxpayers who already have their direct deposit information on file with the IRS will likely get paid first. For taxpayers who have not provided direct deposit information to the IRS, a paper check or debit card will likely be mailed.