Coronavirus Stimulus Bill Approved: Lawmakers Agree To $2 Trillion Deal
The coronavirus stimulus check has officially been approved. Lawmakers agreed to a $2 trillion stimulus deal early Wednesday that includes sending checks directly to individuals amid the pandemic.
According to CNN, the plan states that single Americans will receive $1,200, married couples would get $2,400, and parents would see $500 for each child under age 17.
However, the payments would start to phase out for individuals with adjusted gross incomes of more than $75,000, and those making more than $99,000 would not qualify at all. The thresholds are doubled for couples.
The funds are on the way but it will likely take until at least May before the money goes out.
About 90% of Americans would be eligible to receive full or partial payments, according to estimates by the Tax Policy Center. Lawmakers set aside $250 billion for the so-called recovery rebates.
Qualifying income levels will be based on 2019 federal tax returns, if already filed, and otherwise on 2018 returns. (Treasury Secretary Steven Mnuchin earlier this month delayed the filing deadline until July 15.)
There are provisions in the bill to include those who don’t earn enough to file returns, but some people may be missed, said Howard Gleckman, a senior fellow at the center.
It’s likely that Americans would receive the stimulus payments faster this time around because more of them file electronically and provide the IRS with their bank information, Gleckman said. Some 88% of individual returns were filed electronically in 2018, compared to 58% in 2008.
But there are other factors that may slow the process. During the coronavirus pandemic, the agency is working with a smaller budget and less staff. They had to shut down its in-person taxpayer assistance centers located across the country at a time when people are sure to have questions about the emergency checks and other changes.
Additionally, Congress created a new tax credit designed to refund businesses that are offering their employees coronavirus-related paid leave.
We’ll update as more information comes available.
