The package of the third quarantine financial aid is finally approved: who will receive and how much

Millions of Americans affected by the economic damage caused by the pandemic will receive one-time direct payments of up to $ 1400. The payments are part of a $ 1,9 trillion bailout plan proposed by US President Joe Biden. Congress passed the bill, now it only needs to be signed by Biden. Who will receive the checks and on what conditions, said the publication USA Today.

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Joe Biden already on Thursday, March 11, signed the document, although initially the signing was planned for March 12, writes USA Today.

“I believe this historic legislation is about rebuilding the backbone of this country and giving our nation — the working people, the middle class people, the people who built the country — a chance to win,” Biden said.

As with the two previous tranches of payments ($ 1 last spring and $ 200 in December), some citizens will not be affected by these benefits.

Highly paid workers

Congress has made a major change to limit who will receive checks this time around.

Under the new legislation, individuals with an adjusted gross income of $ 80 or less ($ 000 for joint filers) are eligible for a lump sum payment of up to $ 160 plus an additional $ 000 for each dependent child.

Payouts begin to phase out for individuals earning $ 75 and cease entirely for anyone earning more than $ 000. For couples applying together, the reduction starts at those who earn $ 80 and ends at $ 000. for those who apply as head of household, the phased reduction starts at $ 150 and ends at $ 000.

The IRS is likely to use tax returns to calculate how much money people will get. If recipients have already filed their 2020 return, their check will be based on their income from the previous year. Otherwise, their 2019 income is used to determine the amount they will receive.

The new rules mean payouts will be phased out faster than in the previous two rounds when the cap was $ 99.

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Congress changed the demands in response to concerns from Republicans and some moderate Democrats, who argued that payments should go to the people who need them most.

The faster phase-out would mean the 6,5 million Americans who received checks in the first two rounds will not receive them this time, according to Garrett Watson, senior analyst at the Washington think tank's tax fund.

Other analysts estimate the number of people who will be excluded, even more - 7-8 million.

Students

Good news for the students this time.

In the first two rounds of assistance, students age 17 and over were not eligible for payments if their parents or guardians declared they were dependent. Parents also did not receive the additional money awarded for each dependent child. This only applied to children under the age of 16.

As a result, many high school and college students did not receive a check, and their parents did not receive extra money.

This time, parents with dependent children of any age will receive $ 1400 for each of them if they meet the requirements.

Elderly and disabled people

Most seniors will be eligible for payments, just like in the first two rounds. One change - this time, some older people expelled last year will also receive money.

In the first two rounds of payments, seniors and adults with disabilities were eligible for a check as long as no one else declared them to be dependents.

For example, if a disabled adult lived at home with his or her parents and the parents claimed that he or she was dependent, then the disabled adult did not receive a check.

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This time, even the elderly and adults with disabilities, who have been declared dependents by someone, will have the right to money.

Advocacy groups for older people have pushed for Congress to grant them eligibility, arguing that it will provide much-needed assistance to families who often face the dire emotional and financial costs associated with the needs of older people.

Expanding the definition of eligible dependents would mean an additional 26 million people may be eligible for a check, said Kyle Pomerlo, a tax policy expert at the American Enterprise Institute.

Immigrants

As with the first two rounds, immigrants are eligible for payments if they meet the eligibility criteria and have a valid Social Security number.

Immigrants with green cards or H-1B and H-2A work visas are eligible for this financial assistance. Non-residents, temporary workers and immigrants who are in the country illegally do not have the right to it.

Mixed-status families - families with different citizenship and immigration classification - will be eligible for a check if one of the family members has a social security number. In other words, if one spouse is a US citizen or lawful permanent resident and the other spouse is not, the family will still be eligible for a check if one of them has a Social Security number.

According to the Migration Policy Institute, such families were not eligible for a check during the first round of payments, meaning almost 5,1 million US citizens and legal immigrants were excluded.

Congress allowed mixed-status families to receive checks during the second round late last year and made a retroactive policy so that families can claim payments missed during the first round.

Low-income people who do not file tax returns

Low-income people who haven't filed tax returns in the past two years are eligible for a check, but millions of them won't get one unless they take the extra step.

Potential Social Security applicants will automatically receive a preferential check if the IRS follows the same procedure as the first two rounds. If so, the government will use social security data to determine how much they will receive and where the money will be sent.

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For those who have not filed tax returns in the past two years, this is not the case.

Individuals are not required to file taxes if they earn less than $ 12 per year. Tax preparation company TurboTax estimates that 000 million Americans fall into this category.

These people are eligible for a check, but without the IRS tax returns, it will be more difficult to check their income, calculate the amount of the payment, and know where to send it.

Last year, the IRS launched a web portal that will allow them to register to receive payment. The federal government has not specified how it will identify them this time around and calculate payments. Garrett said the IRS is expected to rely on the online portal in the third round as well.

How soon the checks arrive

Hard question. The Department of Finance has not yet announced when they will start distributing the money.

Garrett suggested that the schedule is likely to be similar to the second round of payments approved in December. Americans who received checks through direct deposit began receiving payments about two weeks after the law was signed into law. Those who received the paper check had to wait longer.

Biden said last week that many Americans should receive their payments by the end of the month.

In mid-February, the IRS announced that it had distributed all checks to everyone who was eligible to participate in the first two rounds.

More than 160 million payments totaling $ 270 billion were distributed in the first round last spring.In the second round at the end of last year, more than 147 million payments were delivered, totaling more than $ 142 billion.

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