The third stimulus checks worth $1,400 or $2,000 might come in the coming weeks. Here are the most important things you should know if you are wondering when it will come or how your 2020 taxes affect your check.
Could the Tax Season 2020 affect your third stimulus check?
The Tax Season 2020 is significant for stimulus checks. Whether you usually file taxes or not, stimulus checks add an extra dimension to taxes and vice versa as the Internal Revenue Service (IRS) has more or less hooked to the tax system. It is crucial to decide how much money you would get in your stimulus checks to how fast the IRs can send your next payment.
The IRS would use Americans' 2020 taxes to reconcile the difference if a person's first and second stimulus payment did not arrive. However, if you have filed for a Recovery Rebate Credit, it will be a part of a tax return.
Besides, if you received a letter from the IRS saying the stimulus money could not be sent, but you never received your funds, you might need to set up a payment trace using the IRS rebate credit.
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According to CNET, the new-elected President Joe Biden has been optimistic about Congress passing how the $1.9 trillion covid relief plan includes the third round of stimulus checks worth $1,400. Along with the Congressional Democrats, Biden wants to see the third distribution of funds sooner than later.
House Speaker Nancy Pelosi said a stimulus bill could be ready for a House of Representatives vote as early as February 1. However, it remains unclear if the bill would be smaller, containing a stimulus check and funding for COVID-19 vaccine delivery only, or the whole relief package. The level of urgency indicates that a new stimulus payment would arrive next month or two at most.
More Americans could qualify for the third stimulus check, but it isn't very easy if the check winds up having a per-person maximum of $1,400 to $2,000 or some other amount. The IRS uses a mathematical formula and an income limit that would determine if you will or will not get any money.
Read also: Americans Who Choose To Use Their Stimulus Money To Help Those in Need
When will the third round of stimulus checks arrive?
Biden released an economic relief plan even before he was sworn in of office on Wednesday. His stimulus plan includes $1,400 direct payments to most Americans. Support for the third round of stimulus checks potentially be bipartisan, but it could be weeks before Congress reaches a deal as it is a part of a larger $1.9 trillion relief plan, as per CBS Local.
Robert Dye, the chief economist for Comerica Bank, claims talks regarding the plan won't be smooth sailing as several Democratic senators were concerned about the implicated budget and "how we are going to pay ourselves back. Those are very valid concerns."
In the coming days, a bipartisan group of senators is expected to meet with a top White House economic adviser to discuss the next federal aid. Robert believes Congress will eventually approve a relief package that includes third stimulus checks.
According to Mass Live, economists and lawmakers hope Americans see the third round of stimulus checks to hit their bank accounts by late March or sooner. The Biden-Harris administration and several lawmakers press for $1,400 stimulus checks to be approved before former President Trump's impeachment trial starts in a few weeks.
Read also: Stimulus Bill Includes $25 Billion in Rental Assistance. Are You Qualified? Here's How to Apply
