The White House has signed a $1.9 trillion Covid-19 relief package called the American Rescue Plan. This would include a $1400 stimulus check, some unemployment benefits and annual child tax credits. And yes, green card holders are eligible! *
What Is The New Covid-Relief Package – Third Stimulus Check?
With Covid-19 pandemic, many in the U.S. lost jobs, and lives. This led to a major economic downturn for the country and severe financial distress of individuals. As a means to provide some support, President Biden signed an economic relief package for financially distressed individuals and families yesterday. This would release a third round of checks to the amount of $1400 for eligible individuals with a social security number.
Officially the IRS is expected to start rolling out the checks by March 17, 2021. But many who are eligible based on their 2019 tax returns might start getting it sooner, perhaps even by this weekend.
Who Qualifies For The Third Stimulus Check? And How Much To Expect?
Primary criterion is to have a social security number. And an income slab has been defined which decides if you are eligible to receive this check. Those who make more than the incomes defined below will not receive a check.
Green card holders and permanent residents in the U.S. are eligible to get the check if they fall under the category below –
- $1400 for individuals making under $75,000;
- Less than $1,400 for individuals who make between $75,000 to $80,000;
- $1400 for heads of households who make less than $112,500;
- Less for heads of household making between $112,500 to $120,000;
- $2,800 to married couples who make less than $150,000;
- Less than $2,800 for couples making between $150,000 to $160,000.
- Joint filers up to $160,000 will get some money but not the full amount;
- Up to $1,400 per dependent, including adult dependents;
- $300/week as jobless benefits until Sept. 6, 2021;
- Annual child tax credit up to $3,600 for children up to age 5 (details below) and
- $3,000 for children aged 6 to 17 (details below).
How Will You Receive The Stimulus Check?
Since most of those who qualified for the last two rounds of stimulus checks have received it directly into their bank accounts, this is how everyone eligible this time can expect to receive their checks as well.
For some others, IRS is also considering releasing physical checks in the mail. Keep an eye out for your check in the mail.
Special Consideration For Parents In The Stimulus Package
The Biden administration has given a special consideration for parents in this round of economic support from the U.S. government. Not only minors but also adult children claimed on their tax returns as well as kids with permanent disabilities will be eligible for a check.
Parents under financial duress will get some relief in the form of a child tax credit. Currently, it amounts to $2,000 per child under 17 for single parents or heads of household earning less than $200,000 or married couples making less than $400,000 annually.
The new relief package expands it to $3,600 for kids under the age of 6 for single parents earning less than $75,000 annually, $112,500 for head of households, and $150,000 for married couples.
It is slightly lesser for children aged between 6 & 17 years and amounts to $3,000 per child/year.
Again, this includes adult children including college students and children with permanent disabilities.
How Will Eligible Parents Receive The Extra Money?
The IRS may send out monthly checks from July to December 2021. This means monthly payments will arrive in the amounts of $300/per child under 6 years of age and $250/child between 6 and 17 years of age.
The remaining half would come in once the taxes are filed this year. They have until August 2021 to file their taxes.
Important To Know
Different eligibilities this time: Not everyone who received the stimulus check last time will get it this time. Unlike last time, IRS will not be issuing checks to individuals who make between $80,000 and $100,000 as well as married couples who make between $160,000 and $200,000.
Tax Filing in 2021: Individuals who dealt with lower incomes or loss of employment in 2020 will have an important consideration when filing their taxes this year. if filed before April 15, 2021, you will get the maximum amount of the stimulus check, else it will be calculated based on 2019’s tax filings.
Tax free: The stimulus check amount is tax free
ITIN does not qualify: An Individual Taxpayer Identification Number does not replace the need to have an SSN. To be eligible, you should have an SSN
SSN for kids: The same is true for eligible minors/children. Only kids with an SSN would get a payment, and those who lack one would be excluded.
The Third Economic Relief Bill Also Supports
- $14 billion for vaccine distribution;
- $49 billion for Covid-19 testing, contact tracing and personal protective equipment
- $125 billion for K-12 schools and $40 billion for high education to be able to reopen schools;
- $39 billion in child care grants;
- $25 billion in rental assistance and
- $30 billion for public transit.
