Illustrative image of the stimulus check sent by the federal government.
Photo: Jeff Fusco / Getty Images
The new levels of eligibility for the third $ 1,400 stimulus check contained in the “American Rescue Plan” they reduce the number of creditors, albeit minimally.
President Joe Biden supported the change to the law in the Senate so that the stimulus proposal of $ 1.9 trillion was approved promptly in the federal Congress. Biden agreed to make the phase-down to zero apply faster than the previous version passed by the House of Representatives, and that means fewer people eligible for the third $ 1,400 check.
Even with the new restrictions, federal authorities – including the president – have estimated that 85% of US households will receive economic stimulus payments corresponding to the third round.
Americans who do not fall between the new applicable thresholds based on AGI or adjusted gross income will not receive the stimulus check from the Internal Revenue Service (IRS).
Precisely, this agency has had to adjust its calculations before proceeding with the distribution of the third check in full tax season. The first direct deposits with payments of $ 1,400 and the same amount for each dependent were released this Wednesday, March 17, the date chosen by the IRS for Nacha and the banks to do the same.
The issue of more focused income level in the new law is key to knowing who will not receive the stimulus check.
Individuals making $ 80,000 a year or more
Individuals who file taxes individually and generate income in excess of $ 80,000 a year will not receive stimulus funds under the new guidelines.
Female heads of household earning $ 120,000 a year or more
Those who file a tax return with the IRS as head of household with income of $ 120,000 or more are not eligible to receive stimulus payments.
Couples making $ 160,000 a year or more
Married couples reporting joint income of $ 160,000 or more to the IRS will also not receive third stimulus check funds.
Undocumented who are not married to citizens or resident aliens
Under Biden’s stimulus package only the undocumented immigrants in mixed marriages, where one spouse is a citizen or has permission to be in the country (resident foreigner with a Social Security number) and the other has an Individual Taxpayer Identification Number (ITIN), the latter will indirectly benefit from the payments of stimulus. For these couples, only the person with a Social Security number will receive the stimulus check for the family.
These households are also eligible for payments of $ 1,400 for each US-born dependent.
“Non-filers” or “Non-filers”
Americans who are not required to file taxes with the IRS due to low or no income may not get paid, unless they submit their tax information this year.
In some cases, the IRS already obtained data from these people through the online tool “Non-filers” available until November 21.
If you are eligible for payments and have not done the due diligence to provide your personal information to the agency, you will most likely not receive the $ 1,400 stimulus check.
Ideally, as soon as you can file a simplified tax return even when you are not generating income so the office can process the payment. In the same document, you can request any credit owed from the past two rounds of payments of $ 1,200 and $ 600, respectively.
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Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.