Will the stimulus check be taxable?
THE American Rescue Plan Act was passed on March 11, 2021, meaning citizens will start to see stimulus money in their accounts. The landmark bill was passed as 220 to 211 votes, with all Republicans and one Democrat, Representative Jared Golden, voting against the bill. Will the stimulus check be taxable? President Biden’s Covid relief bill includes a […]
THE American Rescue Plan Act was passed on March 11, 2021, meaning citizens will start to see stimulus money in their accounts.
The landmark bill was passed as 220 to 211 votes, with all Republicans and one Democrat, Representative Jared Golden, voting against the bill.
Will the stimulus check be taxable?
President Biden’s Covid relief bill includes a new round of stimulus checks worth $1,400 to get the US economy moving.
The latest round of cash will start to be phased out for individual taxpayers who earn $75,000 a year.
But once you hit the $80,000 annual gross income (AGI) limit, you won’t be able eligible for the help at all.
Moderates forced tightened eligibility for couples hoping to obtain stimulus checks, now phased out completely at pairs making $160,000.
However, those that fit the bill will receive $1,400 if they are single, and $2,800 if they are in a married couple.
This also means that a family of four could see a package of up to $5,600.
Neither of the two previous stimulus checks delivered in 2020 were considered taxable, and according to the IRS, the third check won’t be taxable either.
″…the Payment is not includible in your gross income. Therefore, you will not include the Payment in your taxable income on your Federal income tax return or pay income tax on your Payment,” the website read.
“It will not reduce your refund or increase the amount you owe when you file your 2020 Federal income tax return.”
The payment will also not impact eligibility for federal government assistance or benefit programs.
When will I receive my stimulus check?
Biden’s bill allows for the checks to be sent by the end of the year.
White House Press Secretary Jen Psaki has already confirmed that the checks will be sent as soon as possible.
She said: “We’re doing everything in our power to expedite the payments and not delay them.”
She went on to confirm that this is the reason why President Biden’s name will not appear on the memo line “of this round of checks.”
Instead, Psaki confirmed that the checks will be signed by a career official.
She added: “This is not about him, this is about the American people getting relief.”
She said that some citizens could start to see checks in their direct deposit as early as this weekend.
What did Biden say about passing the bill?
Signing the bill on March 11, President Biden said “this historic legislation is about a fighting chance.
“Tonight, and the next couple of days, I’ll be able to take your questions,” he told reporters. “But in the meantime, what I’m going to do is sign this bill and make the presentation tonight.
“Then there will be plenty of opportunities to be on the road not only talking about what I’m talking about tonight, which is the impact [of] the virus and how to end this pandemic.
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“We’re going to talk about all the elements of the bill beginning Friday, Saturday, and all through the week. So, thank you for being here,” he added as he signed the bill.
On Twitter, Biden went on to say that “85% of American households will get direct checks from the American Rescue Plan.”
“For so many Americans, that means they can pay the rent. That means they can put food on the table.”