The third stimulus check will provide the largest payments for dependents yet.
President Joe Biden is keen to get coronavirus relief to the American public as soon as possible. As a result, lawmakers are hard at work on legislation to support Biden's relief plan. The House Committee on Ways and Means has outlined who might be eligible for a third stimulus check, and how it will work.
The good news for Americans hoping for a large deposit in their bank accounts? Dependent payments will be higher than under previous stimulus bills. And dependent money may be available to more people.
Here's how much dependents will receive for the third stimulus check
The third stimulus check of $1,400 will go to both adults and dependents alike. The dependent payment is substantially larger than previous payments. Specifically:
- The CARES Act paid $1,200 per adult but just $500 per eligible dependent.
- The December relief legislation paid $600 per adult and per eligible dependent.
This check will more than double the amount of money for dependents, compared with past coronavirus bills. A family of four could get as much as $5,600, while they would have received $3,400 under the CARES Act or $2,400 under the December relief bill.
The idea of additional stimulus gained traction in December. Former President Donald Trump complained a $600 check was too low and pushed for $2,000. Congress did not agree, but Democrats then campaigned on providing the larger sum. Paying $1,400 per person combines with December's $600 to make $2,000 in total.
More dependents will be eligible for funds this time
Dependents won't just benefit from an increased payment if this bill passes. The House Committee on Ways and Means also said both child and adult dependents will be eligible this time.
Adult dependents, including many college students, were left out of the last two coronavirus stimulus payments entirely. They were not eligible to claim the payment themselves because they'd been claimed as dependents on someone else's tax return. And the taxpayers who claimed them couldn't get the extra money, since that was restricted to child dependents under 17.
This rule change means many more families will receive funds for adult children or other qualifying individuals who they support financially.
Income limits are stricter
While more dependent funds will be available with this check, fewer people may be eligible. The proposed legislation keeps eligibility for the full stimulus check at $75,000 for single tax filers, $112,500 for heads of household, and $150,000 for married joint filers.
But past relief bills phased out the payment amounts at a rate of $5 per $100 above these thresholds. This allowed higher earners to still receive some stimulus cash, especially if they had dependents. In contrast, this new proposal sets strict income limits. No money will be provided, even for dependents, once income hits those thresholds. That's $100,000 for single filers, $200,000 for couples, or $150,000 for heads of household.
Still, this means that many people will receive more money in their bank accounts if the current proposal is actually signed into law.
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