The U.S. Congress is slated to approve the third round of direct stimulus payments in less than a year, meaning that most Americans can expect another cash infusion in the coming weeks. Once President Joe Biden signs the measure into law, the Internal Revenue Service will send more than $410 billion to low- and middle-income households, the largest batch of direct household payments yet during the pandemic. Democrats say that these $1,400 payments, combined with $600 approved in December, is fulfilling a pledge made late last year to send $2,000 checks to American households. The hope is that the payments can help families cover costs while hundreds of millions of people wait to be vaccinated and return to more normal daily routines.
Individuals who earn as much as $75,000, or couples making $150,000, plus their children or adult dependents, qualify for the full $1,400 per person. Single parents with at least one dependent who earn $112,500 or less also get the full amount. Families in which some members have different citizenship and immigration classifications are also eligible for a payment, if at least one person has a Social Security number. The payments phase out much more quickly than in previous rounds: An individual with income of $80,000, or a couple with $160,000, get nothing. That’s the result of a last-minute compromise to maintain the support of moderate Democrats who wanted to more narrowly target the money. Read more…