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Stimulus check: Who will receive $1,400 and who won't?

Last week, the House approved a budget that would allow President Joe Biden to move forward with a new Covid-19 relief package. However, there's potential for things to be different this time around

Stimulus check: Who will receive $1,400 and who won't?

US President Joe Biden waves as he boards Air Force One before departing from Andrews Air Force Base in Maryland on February 5, 2021

(Photo by MANDEL NGAN/AFP via Getty Images)

It looks like Americans can expect a third round of stimulus checks, but some individuals might be surprised at the amount they're receiving. On Monday, House Democrats proposed $1,400 in direct payments to individuals as part of President Joe Biden's $1.9 trillion COVID-19 relief package to battle the Covid-19 pandemic.

However, there's potential for things to be different this time around.

For starters, Congress is considering lowering the income eligibility threshold tremendously. Democrats are proposing lowing the threshold from $75,000 per individual to $50,000, and from $150,00 to $100,00 for married couples. Individuals earning $50,000 or less would receive the full $1,400 payment, and married couples earning up to $100,000 would receive the full $2,800 payment.

Parents with children would receive an additional $1,400 per child.

Similar to the first two checks, individuals earning more than the annual threshold still qualify for half the amount. For example, if you filed individually, and your annual income was more than $50,000, you would only receive $700 instead of the full amount of $1,400.

According to a summary of the proposal, the third round of stimulus checks would be based on taxpayers' 2019 or 2020 income returns. Because Congress will likely tell the IRS to use 2019 or 2020 income, filing your taxes early this year might be wise as opposed to waiting until the deadline.

Many Republicans lawmakers have suggested another round of stimulus checks is not necessary and should only go to the families who have been hit the hardest. However, the Biden administration argues a third round of stimulus checks is crucial in ensuring Americans have enough money to buy food, pay rent and get the medical care they need during a pandemic.

On Friday, the House voted 219-209, approving a budget that would allow Biden to move forward with a new Covid relief package. However, the third round of $1,400 payments would not go out until after Congress passes its relief package. House Speaker Nancy Pelosi said she hopes to pass Biden's stimulus package within two weeks.

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