Congressional Democrats have vowed to pass a new COVID-relief package before extended unemployment benefits run out on March 14. If they meet that goal, it will still take the IRS some time before it’s able to begin sending out payments.
The tax agency started delivering second-round stimulus checks less than a week after they were authorized, but that was in December. The IRS has more on its plate now. Tax return filing season began on February 12, so the IRS is busy processing tax returns – which could very well slow down the processing of stimulus checks. As a result, assuming a third stimulus check plan is enacted by mid-March, don’t expect the first round of payments until later in the month – perhaps even early April if there are any problems.
How Much Money Will People Get?
The current proposal being considered in Congress calls for a base amount of $1,400 per eligible person ($2,800 for married couples filing a joint return), plus an additional $1,400 for each dependent in your family. However, as with the two previous stimulus payments, the total amount would be reduced – potentially to zero – depending on the filing status used and the adjusted gross income (AGI) reported on your most recent tax return.
Under the current proposal, stimulus checks would not be reduced for single Americans earning up to $75,000, head-of-household filers making up to $112,500, and married couples with a combined income up to $150,000. As with previous stimulus checks, they would get a full payment. But for singles with an AGI above $75,000, stimulus checks would be gradually phased-out until they reach zero for anyone making $100,000 or more. For head-of-household filers, the phaseout range would be from $112,500 to $150,000. For married couples filing a joint return, the phase-out range would be $150,000 to $200,000. Plus, the phase-out range’s ceiling would be a hard cap that applies to all people, regardless of how many dependents they have. As a result, third stimulus checks would be reduced to zero for all taxpayers at or above the $100,000, $150,000, and $200,000 AGI levels (depending on your filing status).