U.S. taxpayers who opted for direct deposit when filing their tax returns for 2019 and 2020 will receive the first round of $1,400 stimulus checks, NBC News reports.
The $1.9 trillion American Rescue Plan offers one-time direct payments to those who qualify — the third round of stimulus checks since the pandemic began.
This happened after President Joe Biden signed the Covid relief bill.
A small group of Americans will receive stimulus checks as soon as this weekend, the White House announced Thursday. The IRS could also distribute checks to taxpayers who withheld direct deposit information but whose information on other programs came through.
A calculator created by the personal finance website Grow factors in your filing status, annual income, and several dependents to help you determine how much relief you could expect to receive.
Those who file tax returns with direct deposit or bank account information will receive money electronically, and those without a bank account will accept checks or debit cards.
For those households that haven’t yet submitted their taxes for 2019, the IRS will use their 2019 records – including those who used the “non-filer portal” for previous payments.
With the legislation, taxpayers with an adjusted gross income of up to $75,000 will receive a total of $1,400 payments, while heads of household will receive $112,500, and married couples will receive $150,000.
Also, income above these limits is reduced. Payments are capped at $80,000 in income for individuals, $120,000 for heads of households, and $160,000 for married couples.
An unemployment benefits tax break has complicated the timing of filing a tax return for those who lost their jobs.
Individuals receiving jobless benefits last year can defer paying tax by delaying filing their 2020 tax returns by up to $10,200.
Since then, it might be tempting to file a tax return quickly to show that income to the IRS, however, if a loss of income in 2020 would qualify someone for a stimulus check.
