The $1.9 trillion American Rescue Plan has been signed into law. Among a variety of economic recovery initiatives, the bill includes another round of direct payments to Americans. Here is what you need to know.
How much will I receive?
Individual filers will receive $1,400 if they make $75,000 or less. Couples filing jointly will receive twice that if they make $150,000 or less. Those filing as heads of household will receive their full payment if they make $112,500 or less.
The maximum income threshold to receive a stimulus payment has changed this time around. Now individual filers who make $80,000 or more won't receive a stimulus payment. The same applies to joint filers making $160,000 or more and heads of household making $120,000.
Payment amounts are based on the latest tax return available to the IRS. If you have already filed your 2020 return, they'll use it to calculate your payment. If you have not filed your 2020 return, they'll use your 2019 return to determine how much you'll receive.
How do I track my payment?
The mechanics of this round of stimulus payment is expected to be similar to previous payments. The U.S. Treasury will likely direct the IRS to issue funds either through check, debit card, or direct deposit. Although it is not possible to update direct deposit information specific to this round of stimulus payments, you can change your information by filing your 2020 taxes. The IRS will use the account on your most recent tax return.
Utilize the IRS' Get My Payment tool for the most up-to-date information on when and how your Economic Impact Payment will be received.
What about dependents?
Filers will receive a full $1,400 per dependent. For those who have children in college or older relatives who live in your household, that includes you! If you claim either of these groups as dependents on your taxes, you'll receive a stimulus payment for them.
Have unemployment benefits been extended?
The current weekly federal unemployment benefit of $300 per month has been extended until September 6. It was slated to expire on March 14. Although the payment amounts were not increased to $400 per month, the bill includes a bigger tax benefit for households making under $150,000 a year.
