House Democrats early Saturday morning passed the US $ 1.9 trillion bailout, which includes provision for a third stimulus check worth up to $ 1,400 for taxpayers and each of their families.
Individuals earning adjusted gross income (AGI) of up to $ 75,000 (and married couples earning up to $ 150,000) will receive $ 1,400 each, plus $ 1,400 for each dependent. That means an eligible family of four will receive $ 5,600.
After those income limits, benefits are gradually phased out. Individuals who earn an AGI of more than $ 100,000 per year and couples who earn more than $ 200,000 will not receive a check.
Unlike the previous two benefits, adult family members are eligible for this round. A previous report from the American Enterprise Institute estimated that as many as 26 million more people – mostly college students, disabled adults, and older Americans – will now be eligible for payment. The check could arrive next month.
The distributions are based on income from 2019 or 2020. That means that taxpayers may want to file their taxes before the bill is passed if that would give them a larger incentive payment.
Incentive money is often spent on rent and other necessities
While many workers have been delayed in receiving the unemployment insurance they are entitled to, incentive checks, paid by the Internal Revenue Service rather than state governments, can help them stay on top of their bills.
Some critics have argued that stricter income limits should be introduced on stimulus payments so that they only go to the most deprived. While some recipients have been able to keep their checks, research has shown that many people spent their previous checks on rent, food, and other essential bills. In January, when $ 600 checks hit bank accounts, personal spending rose 2.4%, data from the U.S. Bureau of Economic Analysis (BEA) shows.
Democratic leaders say the $ 1,400 payments meet President Joe Biden’s promise of $ 2,000 checks coupled with the $ 600 payments sent in January. But some progressive critics say the government should send a full payment of $ 2000 in addition to January’s.
The bill now goes to the Senate. Democrats hope Biden will sign it before March 14, when many federal unemployment schemes expire.
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