A third stimulus payout on its way! President-elect Joe Biden has announced that a new $1.9 trillion coronavirus relief package that will be available for millions of Americans. This tops off the second stimulus checks (up to $600 per person, with an additional $1,400 payment).
To help you to find out if you are eligible for the pay-out, we have summarized the latest information below.
How Much Will You Receive?
On January 14th, Biden announced that he is creating a $1.9 trillion relief package. This will increase stimulus payments from $600 to $2,000 for millions of eligible Americans.
What this means for you:
If you are currently receiving a $600 stimulus check, you may be eligible for an additional payment of $1,400.
Are You Eligible?
If the third relief package follows the same criteria as the first two stimulus payments, your third stimulus check will be dependent on your tax filing status and income level.
The IRS has previously used the following AGI limits to determine eligibility:
- Single filer checks phased out at AGIs over $75,000.
- Married and joint filer checks phased out at AGIs over $150,000.
- Head of household checks phased out at AGIs over $112,500.
How Soon Could You Receive the Third Stimulus Check?
The Senate is currently evenly divided 50-50 between Republicans and Democrats.
Democrats are able to use a process tool known as “budget reconciliation” to speed up the third stimulus check legislation in the Senate. This means that bills could be passed with a simple majority.
The good news is that Democrats have voted in favor a stimulus increase. It is, however, still unclear whether the third stimulus pay-out will have enough support to get approved. It is possible that Moderate Democrats and Republicans could oppose another stimulus payment because of the rising costs of the relief packages.
A stand-alone bill such as the CASH Act might be the quickest way to get a third stimulus check approved.
President-elect Biden is prioritizing the action if the stimulus pay-out. But he will need Congress to approve the rescue plan so that it can become law.
What Can the Funds be Used For?
Times are extremely challenging, and every situation is different. However, the majority most recipients who got the first stimulus check spent their payment on household expenses.
In a 2020 Census, adults with incomes between $75,000 and $99,999 said that they would use the funds to pay off debt or top up their savings. Adults making less than $25,000 said they would use their stimulus to pay for expenses.
For households that spent their first stimulus checks, the study shows that:
- 80% used it on food.
- 77.9%used to pay their rent, mortgage or bills.
- 58.2% used it on household supplies and personal care products.
- 20.5% used it on new clothing.
- 8.1% used it on household goods such as electronics and furniture.
Whatever your circumstances, the money is there to help you.
We hope you find this post useful. We will keep you updated as more developments come to light. In the meantime, keep checking back to our blog for more financial advice, support and assistance.
We are all in this together.
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