[Updated following Biden Economic Plan] With Democrats winning both Georgia Senate seats and effectively gaining control of the Senate, thanks to the Democratic VP Kamala Harris being the tie breaker vote, new Senate Democratic Leader Chuck Schumer has said that one of the first things he wants to do as Senate Majority Leader is “renew call for the $2,000 stimulus checks.” This is in line with what President Elect Biden has stated as a priority in his first 100 days in office and outlined in his $1.9 trillion American Rescue Plan.
Third Stimulus Check
This third stimulus check ($1400) would be on top of the $600/$1200 second stimulus checks recently paid out and cost over $400 billion if it includes another round of dependent stimulus checks as well – likely $600 in line with the second economic impact payments (EIP). Income thresholds and other eligibility will likely stay in line with the second stimulus check and would likely be based on 2019 or 2020 tax return information. Using 2020 tax returns would allow tax payers to have the latest dependent and payment information for the IRS to administer the payments. You can file your 2020 tax return now with Turbo Tax to ensure your bank account and dependent details are up to date.
When Will I Get The Biden Stimulus Checks?
If the new Congress and President approves this by mid-February, after hashing out details, the third round of stimulus check payments could be paid by the IRS in early to mid March 2021. Given the IRS has now paid out two rounds of stimulus payments, the process to pay the third stimulus checks is now well established. For those who have not filed their 2020 return or request an extension they could claim the $1400 stimulus check (and any past missing stimulus payments) as a recovery rebate. Non-filers will likely have an opportunity to update their details via their main benefits agency (e.g. SSA for Social Security recipients) prior to this third payment.
This is a developing story and no formal legislation has been put forward. I expect there to be a lot of debate in Congress around other items in Biden’s new stimulus plan so the amounts and eligibility thresholds could change in the final legislation. See more in this video update on the $1400 payments and stay tuned for updates.