(PatriotWise.com)- The White House is acting quickly in getting the $1,400 direct stimulus payments into Americans’ bank accounts.
On the same day that President Joe Biden signed his $1.9 trillion economic relief package, White House press secretary Jen Psaki said people may start receiving their direct stimulus payments in their bank accounts by this weekend.
Those payments would be “just the first wave,” while many more will be issued over the weeks to come. Roughly 158.5 million households are expected to receive the direct stimulus checks, which will total $1,400 per person for every qualifying person.
The process for distributing these stimulus payments will be streamlined, since it is the third time in the last year that they are being given out. They will be processed with similar lightspeed fashion to the $600 payments given out under former President Donald Trump in December.
The IRS started to send those payments immediately after Trump signed the bill, and they started hitting people’s bank accounts only a few days later.
Those who receive the checks first will be people who have their bank account on file with the IRS. That includes people who file their taxes and either have their refunds deposited electronically or pay any taxes due electronically.
This third round of stimulus payments will be a little more targeted than the first two rounds. The income limits have been reduced, and the complete phase out of payments was sped up.
People who file their taxes as single filers can earn an annual adjusted gross income up to $75,000 and still qualify for the full $1,400. Heads of households earning up to $112,500 and married couples earning up to $150,000 are also eligible for the full payments.
These same taxpayers will also qualify for an additional $1,400 for each dependent. That means a family of four who qualifies for full payments will receive $5,600.
If your income is higher than that, the payments will start to phase out quickly. Single filers who earn more than $80,000 will receive no payments at all. Heads of households earning $120,000 or more and married couples earning $160,000 or more won’t receive a payment at all.
Taxpayers who earn income between those levels will see a reduced payment amount. For single filers, there’s a 28% phase out rate. In other words for every $1,000 they earn above $75,000, they’ll get $280 less. So, for example, if they earn $77,000, they’ll receive a check for $840.
Married couples who have no dependents have the same phase out rate, but couples with one dependent have a 42% phase out rate.
It’s a complicated formula to figure out, for sure. The income levels will be based on the 2020 adjusted gross income for taxpayers who have already filed their taxes from last year. If not, the income will based on their 2019 income tax return.
In addition to meeting the income requirements, a taxpayer must have a Social Security number in order to qualify for this third round of stimulus payments.