Stimulus Q&A: Who gets $1,400 and when? Can my stimulus money be garnished for debts?
At what salary levels to do the payments phase out? Can they be garnished to pay off debts?
Who’s getting a third stimulus check in 2021?
The third round of $1,400 payments would be slightly different under President Biden’s changes on Wednesday, Mar. 3.
The Senate’s version of the legislation would send reduced payments to Americans making more than $75,000 and $150,000 for joint filers, and cap payments at adjusted gross income of $80,000 and $160,000, respectively, The Associated Press reported.
Under the House bill, payments would have been gradually phased out and cut off for individuals making $100,000 and couples making $200,000.
It’s possible the final stimulus plan will change before it’s brought to a vote, which is expected this week.
“Until it’s signed, there’s always room for change,” said Lisa Borrelli, wealth tax and estate planner at WSFS.
Why the phaseout?
America’s lower-wage workers suffered most. Pew Research Center defines middle-income households as those making $48,500 to $145,500 in 2018. In a survey around the pandemic, Pew found that 36% of lower-income adults and 28% of middle-income adults reported losing a job or taking a pay cut due to the pandemic, compared with 22% of upper-income adults.
Will dependents get checks this time?
Yes. President Biden’s proposal would earmark an additional $1,400 per child dependent, to be added onto the checks of their parents or guardians, according to the latest version, said Borrelli.
This could mean money for around 13.5 million college students.
This contrasts with the first stimulus, where some claimed as a dependent, age 16 or under, got no money.
When will we get our money?
Possibly late March.
The House of Representatives is expected to bring the proposal to a vote. The Senate then has to vote, and any final package likely will be signed by Biden.
Days after signature, checks and debit cards go out in the mail or into banks accounts through direct deposit.
“Congress wants the money in our hands as soon as possible,” said Karolyn Banks, managing associate and CPA at Drucker & Scacetti.
Whom do I call about my stimulus check?
Visit the IRS website first. There’s a special link to find out if you’re eligible and how much you should receive: www.irs.gov/coronavirus/get-my-payment.
You’ll be asked for your Social Security number or taxpayer ID number.
Calling the IRS could take much longer.
“You’re better off just going to the website,” said Banks. “The IRS has been backed up for months and many [employees] are still working remotely.”
Why another round of stimulus checks?
After receiving the most recent $600 checks, lower-income households significantly increased spending, according to a paper by Opportunity Insights Economic Tracker pinpointing how stimulus payments help consumers.
Some small business owners are surviving on stimulus checks as well, said Jennifer Rodríguez, president and CEO of the Greater Philadelphia Hispanic Chamber of Commerce.
“In my discussions with commercial corridor managers, I learned that many of the business owners were relying on stimulus checks to support them because they were either not eligible or unable to access relief funds,” she said.
Potential tax rebates
Didn’t get any stimulus money in 2020? You may be entitled to a tax rebate.
Did you qualify for Economic Impact Payments and not receive any money in 2020?
Up to eight million households were entitled to payments but didn’t get those due to processing delays and problems with their applications, a recent Treasury fact sheet estimated.
If you didn’t receive the first or second round of stimulus, and were eligible under the income limits, you’re allowed to take a credit against your 2020 taxes, said Mary Lew Kehm, a CPA in Whitehall, Pa., and tax expert who blogs at www.speakingoftaxes.net.
It’s up to taxpayers and their accountants to determine how much.
Can my stimulus money be garnished for overdue child support?
No. The latest bill removed that garnishment.
“Any other debts, such as back taxes, can’t be reasons to garnish your check” either, said Banks.
Will Social Security recipients receive a third stimulus check?
“This is for everyone who has earned income and filed taxes and there’s language in the bill to expand to non-citizen spouses who are U.S. residents,” Borrelli said. “But that’s not final.”
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