1,400 incentive checks are underway. Here’s who qualifies

President Joe Biden signed $ 1.9 trillion on Thursday to eliminate the coronavirus, which means $ 1,400 could begin reaching Americans in the coming days.

Payments are expected to reach about 159 million households.

“People can expect to see direct deposits reaching their bank accounts as early as this weekend,” White House Press Secretary Jen Psaki said on Thursday.

“Payments to eligible Americans will continue over the next few weeks,” she said.

Checks will be a maximum of $ 1,400 per person, or $ 2,800 per married couple, plus $ 1,400 per dependent.

Like previous direct payments, this third round will be based on income.

The income limits for those who receive the maximum amount will remain the same. Individuals earning up to $ 75,000 in adjusted gross income, heads of household up to $ 112,500 and married couples filing jointly with up to $ 150,000 will receive $ 1,400 per person.

This time, however, the amount is gradually eliminated at a faster clip. Payments will be limited to $ 80,000 per person, $ 120,000 for heads of household and $ 160,000 for married couples. People with adjusted or higher gross income levels will not receive anything.

As a result, fewer people will receive reduced payments this time.

“If you received a full payment last time, you will receive the full payment this time,” provided your income has not changed substantially, said Steve Wamhoff, director of federal tax policy at the Institute for Taxation and Economic Policy.

The $ 1,400 checks will generally be based on 2020 or 2019 tax returns, depending on the most recent deposits that have been processed by the IRS.

The government will also send payments to anyone who has not registered.

Here is a breakdown of those who still receive money or not this time.

Payments of $ 1,400 will also be for eligible dependents. This time, it includes those over 17 years of age.

The money will be sent to those adults who have claimed dependents.

As with previous checks, individuals will need a valid social security number to qualify.

So, if you file your taxes with an individual taxpayer identification number or ITIN, you do not qualify.

For married couples in which a spouse has a social security number and a spouse has an ITIN code, only the spouse with the social security number will receive a payment. Their children will also qualify, provided they also have valid social security numbers.

“There were a lot of people who thought we should give everyone checks,” Wamhoff said. “This legislation takes an intermediate approach.”

People who have been alive since January 1 will qualify.

People who have unpaid private debt – excluding outstanding child support payments or tax debt – could be at risk of securing incentive checks.

This is because MPs have used a process known as budget reconciliation to pass the coronavirus aid package, which has limited their ability to prevent the confiscation of payments. However, the banking and consumer trade groups called for the adoption of subsequent legislation to change this.

If you do not receive a $ 1,400 payment or a reduced check, but your income changes, you may be able to claim the money owed to you when you file your taxes next year.

“Any change, either a slight reduction in earnings or even just putting more money into a traditional IRA or a 401 (k) could result in a much higher total payment when they make their taxes in 2021,” said Garrett Watson. , senior policy analyst Fiscal Foundation.

“There is a subset of people who will be in this situation,” Watson said.

This is also true for this year’s tax filing season for people who lost their previous payments of $ 1,200 or $ 600. You can apply for a recovery discount credit to recover any money owed to you. This is also available to people who do not usually file tax returns because their income is too low.

The IRS website provides information on free deposit instruments.