Americans are just a few days away from receiving their third and the largest coronavirus stimulus cheque after President Joe Biden officially signed the $1.9 trillion American Rescue Plan into law on 11 March 2021.
The bill directs the Internal Revenue Service (IRS) and the Treasury Department to immediately send $1,400 direct payments to each American adult who is eligible.
“This historic legislation is about rebuilding the backbone of this country and giving people in this nation — working people, middle-class folks, people who built the country — a fighting chance,” Biden said at the Oval Office while signing the bill. “That’s the essence of it.”
The initial push for the third stimulus cheque already began in December 2020, even before the second round of $600 payments were authorized.
When will the third stimulus cheque arrive?
The official payment date was last 17 March, but the payments might take longer to be cleared in some banks. Along with this, the subsequent batches of the direct deposits will arrive over the coming weeks.
However, not everyone will receive the third stimulus cheque as it has steeper cut-offs and stricter eligibility requirements than previous ones.
Here is a little information you need to know about the payments, including the eligibility, and how much you will receive.
Stimulus payment: Who is eligible to receive the $1,400 payment?
Adults will receive $1,400 per individual in their household if they are eligible and this includes the adult dependents such as college students and elderly relatives.
This payment differs from earlier payments, as the dependents under the age of 17 were qualified for the stimulus cheques. So now this new inclusion means 13.5 million more people will receive the stimulus cheque, according to the Census Bureau.
However, the eligibility criteria are stricter than the previous rounds. The basic rule is if you received the payment last time in full (or you were eligible for one but still waiting for it) you will receive the full $1,400 amount this time.
These are the following amounts you will receive:
|
Eligibility |
Amount |
|
Individuals making less than $75,000 in their Adjusted Gross Income (AGI) |
The full amount of $1,400 |
|
Married filers who earn a combined $150,000 |
$1,400 or $2,800 payments |
|
Each dependent child under the age of 17 |
$1,400 |
|
Head of household making less than $112,500 |
$1,400 |
|
Each qualifying adult dependent |
$1,400 |
|
Individuals making $80,000 a year |
Won’t receive any amount |
|
Married couples earning $160,000 |
None |
|
Head of household making $120,000 |
None |
When will the cheque arrive?
While the official start date for payment distribution is on 17 March, the bill still gives the IRS and Treasury Department until 31 December 2021 to distribute the third round of the stimulus cheque. However, you don’t have to wait this long as the IRS said some people may see their payments by direct deposits before then.
You don’t need to wait so long because both agencies were experienced sending two economic impact payments and they have worked out many delays.
The Biden administration previously pledged to send cheques out to millions of Americans before the end of March and to accelerate the process. The president will not attach his name or signature on the cheque, instead, they will be signed by an official at the Bureau of Engraving and Printing.
“We are doing everything in our power to expedite the payments and not delay them; which is why the president’s name will not appear on the memo line of this round of stimulus cheques,” said Jen Psaki, White House Press Secretary.
These stimulus cheques will be submitted either through direct deposit or will be distributed by mail via a cheque or debit card. The electronic debits will be much quicker, while the mailed money might take much longer to hit your wallet.