Checks for $ 1,400 are on the way – here’s who gets paid first

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On Wednesday, the House of Representatives passed the Senate’s version of the US bailout. This is the $ 1.9 trillion stimulus package that President Joe Biden presented before taking office. It allows stimulus payments of $ 1,400 for eligible Americans, including most dependents.

Biden is expected to sign the legislation on Friday and also said direct payments would be made during March. As with the first two stimulus checks, the IRS will distribute the funds. And some Americans are expected to receive their payments faster than others.

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Here’s how the IRS will distribute the $ 1,400 stimulus check

The IRS has distributed two previous stimulus checks, including payments of $ 1,200 authorized by the CARES Act as well as payments of $ 600 authorized by a relief bill signed by President Donald Trump in late December. The agency already has systems and processes in place to quickly transfer money to Americans’ bank accounts.

As with the first two checks, the IRS should prioritize delivering payments to people who provided their direct deposit information. Indeed, a Treasury Department official confirmed to NBC that the first payments authorized by the American Rescue Plan would be made to those who provided banking information when filing for 2019 or 2020 taxes.

After the agency distributes the payments to the people who have given their bank information to the IRS, the next group of payments is scheduled for those who have provided their bank details to other government agencies who share this data with the IRS. ‘IRS. This includes many people who receive Social Security benefits or veterans benefits.

If the Treasury cannot determine the bank account information, paper checks or EIP cards will be issued. However, these will take longer to process, leaving some Americans on the hook for funds.

How to get your payment ASAP

If you’re in a rush to get your third stimulus check and the IRS doesn’t currently have your banking information on file, or if your banking details have changed since you filed your 2019 returns, your best plan to action is to file a 2020 tax back as soon as possible.

The IRS is already accepting 2020 returns and will use the information they contain to determine eligibility for payment as well as where to send the money – if you’ve filed one.

Not everyone is eligible, even if you received the first two checks

It is important to note that the rules are a little different for this direct payment, so you cannot assume that you will receive a payment. even if you were eligible for the first two stimulus checks.

The income limits to be eligible for full payment are the same as before. You will get the full $ 1,400 if your income is $ 75,000 or less as a single filer or $ 150,000 as a married spouse filer. However, if your income is more than $ 80,000 as a single person or $ 160,000 as a married spouse filer, you will not receive any money.

This differs from past relief bills. Under the CARES Act, for example, individuals could receive partial payments with incomes of up to $ 99,000 and married spousal filers could receive them with incomes of up to $ 198,000 – or more. they had eligible dependents.

If your income has gone down in 2020, making you eligible for payment when you wouldn’t be based on 2019 data, that’s also another reason to file your 2020 taxes as soon as possible.

For those who are eligible, however, you can start monitoring your bank account for money in the coming weeks – or mail, if the IRS doesn’t have your bank details.

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