It’s been a busy week for all things stimulus check-related. The House of Representatives has been hammering out details on President Joe Biden’s, which includes a for , and possibly the beginnings of a . Friday also marks the start of , when you can from the on your — and potentially to .
The good news is that a new stimulus payment could get approved far faster than the second one did, due tocalled budget reconciliation to push through Republican opposition. Though we have an idea of how quickly the , the current timeline puts it in the middle of tax season, which could confuse things. Another complication: The ongoing in the Senate (here’s ), which could delay work on a final bill.
Here’s what we know so far about a third check: Newand in multiple ways, which might result in some people around and others — or no money at all. The situation around , potentially bringing your family more cash, and another , too. This story has been updated.
What’s happening now with the ‘targeted’ stimulus check proposal?
Right now Democrats envision thewith a $1,400-per-person maximum, but income limits and changes to certain rules for it would be “ ” to Americans with lower and middle incomes. In theory, those with the highest incomes wouldn’t get a full or partial check.
The latest proposal (PDF) would draw a line in the sand to exclude individual taxpayers with an(adjusted gross income) of at least $100,000 a year, heads of household earning $150,000 a year and couples earning $200,000. This is a hard cutoff.
In a significant change,, but unlike the first two payments, people who make more than the upper limit wouldn’t be able to claim a partial check by having dependents. Read more about how the .
Ourshows how — if there were no limits in a third round — a person who earns $102,900 a year could still get a partial payment of $5, for example.
Stimulus check proposal for income limits
|Full $1,400 per person maximum (based on AGI)||Not eligible (based on AGI)|
|Single taxpayer||Less than $75,000||$100,000 or more|
|Head of household||Less than $112,500||$150,000 or more|
|Married couple filing jointly||Less than $150,000||$200,000 or more|
Would the IRS base your third stimulus check on your 2019 or 2020 taxes?
The confluence of tax season with ais a huge part of the conversation. We’ll explore that in more detail below, but for now we want to point out that the most recent Democratic proposal would determine your total based on income from either your , whatever the IRS has most recently on file at the time of payment.
However, the proposal also says this (PDF):
Taxpayers receiving an advance payment that exceeds their maximum eligible credit based on 2021 tax return information will not be required to repay any amount of the payment to the Treasury. If a taxpayer’s 2021 tax credit exceeds the amount of the advance payment, taxpayers can claim the difference on their 2021 tax returns.
For example, if youbased on , but your check was issued based on your 2019 taxes, you’d claim the difference a year from now on your 2021 tax return, much like the current for from the first two rounds.
How fast could a third stimulus check get approved?
Thecould clear the House of Representatives by Feb. 22 and go to the Senate before the end of February, if House Speaker Nancy Pelosi and other Democrats have their way. If their plan to , a in early March for the first wave of recipients. But whenever the bill does pass (assuming that happens), it doesn’t mean everyone would get their funds immediately.
There are many variables that could affect you personally. For example, thecould have a dramatic effect on — we’ll just have to see how it all pans out. Meanwhile, we’ve mapped out some dates the IRS and Treasury , depending on who you are.
When might the IRS actually send out a third payment? Would it have another deadline?
The IRS and the Department of the Treasury set a blistering pace to, starting within days of former President Donald Trump signing . They had no choice. The language of the bill provided only a 17-day window to send the checks. There were , and now will have to . (Yes, .)
It appears that the IRS would automatically send a third check to recipients as it has done with the, with taxpayers and claiming any missing money in a or something like it, for the 2021 tax season in 2022. We walk through more possible scenarios for the .
Is there anything I can do to get my third stimulus check faster?
Possibly. Yourare tightly intertwined. There are some important things to know about how your taxes can affect whether you’d qualify, depending on both the and your 2020 . But taxes are now also tied to any you or .
If you file your taxes sooner, you can get athan if you, for example, file a tax extension. We also recommend setting up to get a catch-up payment faster — and potentially get a faster, too. And if you know.
What other rules could change with a third stimulus payment?
Besides possibly lowering the income cap to qualify, the proposal embraces two changes that have been popular among Democratic lawmakers. The first would expand qualifications to, including 13.5 million more people, according to the People’s Policy Project. That includes college students, and dependents of all ages with disabilities (not just those under 17 years old).
The second change to eligibility would include all “” with one or more family members who aren’t US citizens. An example would be parents who aren’t US citizens, but their US-born children are. The second stimulus checks . However, it doesn’t appear that people who are undocumented workers would in the third round.
Why some people might get less stimulus money in a third round of checks
A targeted income limit that cuts off all households above a certain threshold is one way a household could, but there are others, too. We explore that could have an effect, like if you got a raise in the past year, or if you claim fewer dependents this time around.
Why others could get more money in the third round, even with a targeted check
A larger maximum total per person is an obvious way your household would see more money from a third check over the second, but there’s more to it than that. Since the upper limit for the, with an extra (according to , more people hit the upper income limit for receiving a second payment. And that means they at all.
A third stimulus check could make more groups of people(namely who pay taxes), and bring a larger total check to qualified individuals and their families, including possible $1,400 payments to dependents. A change to your circumstances might also mean you qualify for more money this time. Here are other ways a in your pocket.
For more information about, here’s other funding that could be in the , how to and everything your (and the other way around).