Many of you could see $1,400 stimulus payments hit your bank account as early as this weekend. They’re included in the $1.9 trillion COVID relief bill signed by President Joe Biden Thursday.
Many Americans are still experiencing financial pain one year after the pandemic shut down the economy. This historic COVID relief package will get money to those who need it most.
It calls for providing an extra $300 in unemployment benefits through the Fall.
It also provides stimulus payments of up to $1,400. The full amount goes to individuals earning less than $75,000, but then the payments phase out as income goes up.
“If you make $75,000 or less you should get the full $1,400. Once you're leaving the $75,000 between 75 and 100 it does get phased out down to zero beyond $100,000,” said Rebecca Walser, principal owner of Walser Wealth Management.
Married couples earning less than $150,000 also qualify for the full amount and will get an additional $1,400 for each child. And for the first time their adult dependents qualify.
“Anybody who is over the age of 19 and not in college, who is not working and who is claimed on your tax return as your dependent,” explained Walser.
The new income thresholds will be based on a taxpayer's most recent return.
“If you made less money in 2020 you want to file as fast as possible because that could qualify you for more of the $1400 benefit,” Walser said.
Walser warns they will be processing stimulus checks quickly, so there is no guarantee that if you do file your 2020 taxes now, that it will actually impact your benefit. She says if you happen to earn more in 2020 than in 2019, you may want to wait to file your return.
Those who have signed up for direct deposit with the IRS will likely get the money first. Others will get their stimulus check in the mail.
However, the larger payout of this bill is the expanded child tax credit. It gives parents direct monthly payments for each child, instead of getting a lump sum at tax time.
“You’ll file a tax return, you'll list your dependents and even if you owe no tax, you can fully get that $3,600 for children under six and $3,000 for six to 17, even if you’re not working,” explained Walser.
This bill is extensive, including tax breaks for child care, money for agriculture, vaccine distribution and schools and subsidies for healthcare premiums.
The IRS has this online tool to help track your payment.