The next round of stimulus checks will begin pouring into Americans’ bank accounts this weekend, White House press secretary Jen Psaki said Thursday.

Payments will be up to US $1,400 per person and were included in the US $1.9 trillion COVID-19 aid bill signed by President Joe Biden this Thursday.

The deadline is in line with how quickly the December payments came out, which began processing three days after then-President Donald Trump signed the bill.

But not all payments will be made at the same time. Those whose bank information is on file with the Internal Revenue Service (ISR) will likely receive the money first, because it will be deposited directly into their accounts. Others may receive paper checks or prepaid debit cards in the mail.

The money is expected to reach about 90% of families, according to an estimate from the Penn Wharton Budget Model. Families will receive an additional US $1,400 per dependent, so a couple with two children could receive up to US $5,600.

Unlike previous rounds, families will now receive the additional money for adult dependents 17 years and older.

The total amount will go to individuals earning less than $75,000 adjusted gross income, heads of households (such as single mothers or fathers) earning less than $112,500, and married couples earning less than $150,000 . But payments are gradually reduced as income increases.

Lawmakers narrowed the scope of payments this time around, so not everyone who previously received a check will receive one now.

It eliminates people who earn at least $80,000 a year in adjusted gross income, heads of households who earn at least $120,000, and married couples who earn at least $160,000, regardless of how many children they have.

The first round of payments made last year was up to $1,200 and excluded people earning at least $ 99,000, heads of households with a child earning more than $136,500, and married couples without children who were earning more than $198,000, but families earning slightly more were still eligible if they had children.

About 160 million payments were made, and 94% of the families received the money.

The reduction in eligibility in the second round, up to $600, was greater because the total amount was less. Single childless taxpayers earning up to $87,000 and married childless taxpayers filing jointly for up to $174,000 were completely eliminated.

Again, those who made a little more were still eligible if they had children. About 158 ​​million payments were made and 92% of families received them.

The new income thresholds will be based on the most recent taxpayer return. If you have already filed a 2020 return by the time your payment is submitted, the IRS will base your eligibility on your 2020 adjusted gross income.

Otherwise, it will be based on your 2019 return or information submitted through an online portal. created last year for people who don’t usually file tax returns.

If your 2019 income was less than your 2020 salary, you will not receive any money. But if your income dropped in 2020, filing your taxes now, before payments are made, could mean you get a bigger check.

Most people receive stimulus payments automatically, but there are many who missed out, for a variety of reasons. An estimated 8 million eligible people did not receive the first round of payments that were released last year.

Many of these people have very low incomes and are not normally required to file tax returns. Last year, the IRS created an online portal where they could sign up for the money. It is not yet clear if the agency will open the portal again for the third round of payments.

People who have moved or changed bank accounts since the last time they filed tax returns may also lose their payment.

Those who were supposed to receive money during the first two rounds of payments and did not get it can claim it as a tax credit, known as the Recovery Refund Credit, on their 2020 tax returns.

Categorized in: