The Senate is making changes to the third stimulus payment that will differentiate from the first two stimulus checks. As the Senate votes on changes to the $1.9 trillion relief package's contents, the gaps between the third stimulus check and the first and second payments are finally revealed. Changes on who is qualified for a stimulus check also included lowering the salary cap for a third payment, which is now set at $1,400 per individual, as per CNET.
If the Senate amendments become law, the third stimulus check would be somewhat different from the first $1,200 and second $600 payments. Often, depending on the specifics and adjustments to the third stimulus check's income limits, the $1,400 check for yourself and dependents may be delayed.
Anything could shift between now and the end of the Senate's voting, just as it did between the first and second payments. We will use the bill's current version to figure out when the next stimulus payment will go and how the three checks will compare favorably.
Differences between the 3 stimulus checks
The House and Senate have reworked the payout size and eligibility guidelines for each round of stimulus payments. While most of the third stimulus check's expected provisions are known - and could change before the bill is signed into law - there is one mystery.
According to AS.com, since the IRS is in the midst of the tax-filing season, it's unclear if the department will be able to turn around these third stimulus payments in a matter of days, as it did the second, or whether there will be a delay in getting them out. Democrats want to lower the income ceiling, which is the cutoff for receiving payment, while the Senate seeks to finish its version of the bill this week. As a result, even though they have dependents, some individuals and families will easily lose access to funds in this round.
How much are these stimulus checks?
The stimulus check payments in the first and second rounds were worth up to $1,200 and $600, respectively. When running in Georgia for the Senate runoff race, President Biden said then that if the Democratic nominee won and his party gained control of the Senate, he would pass $2,000 stimulus checks. The Democrats dominated both elections, but when Biden announced his American Rescue Plan in January, the third stimulus check was just $1,400.
The White House has described this as a "top-up" payment to the $600 stimulus checks that the Trump administration distributed in early January. Still, many are disappointed that funding seems to have shrunk. Despite this, the stimulus check would be the largest to date, with a family of four collecting up to $5,600 in cash payments.
Read also : Fewer Americans to Receive $1,400 Stimulus Checks: Biden, Democrats Approve to Limit Eligibility
Eligibility requirements slightly widened
It remains unclear who will be eligible for the $1,400 direct payments as the stimulus plan makes its way through Congress. As things stand, the salary limit continues to be unchanged: up to $75,000 for single filers and $150,000 for married couples filing jointly.
Adult dependents will, for the first time, be entitled to receive stimulus payments, but the actual money will be sent to the filer who claims them as a dependent. Previously, 13.5 million college students, disabled Americans, and the aged were denied a stimulus payment.
When to file a tax return to get your stimulus check?
Americans should consider wisely timing their tax returns to get the most money possible. A $1,400 check will be sent to those earning up to $75,000 a year, but the payment will be lowered for anyone earning between $75,000 and $80,000.
Importantly, the value of the payment will be determined by the authorities depending on your most recent tax return. According to the New York Post, it could be easier to file your 2020 tax return before the bill takes effect than to wait before payments begin to be sent out, depending on your financial situation.
If you lost your job or had a drop in profits last year, you can file your 2020 tax return as soon as possible. If you don't, the payout would be based on your 2019 tax return, which means you will get less money if you received more than $75,000 in that year.
However, if your salary grew in 2020, you can wait until the IRS gives you a check based on your 2019 earnings. This is because, based on how much the salary has increased, it will result in a higher payout, as per The Sun.
