The third test of incentives: ways to get more money this time
Washington is bringing the payment of the third incentive closer to reality. Here’s how Congress can potentially put more money in your pocket.
While the Senate is focusing on Donald Trump’s impeachment trial starting Tuesday (here’s how to watch for free), the House of Representatives is spending a week converting President Joe Biden’s $ 1.9 trillion stimulus proposal into a bill, including details for third check of incentives. As expected, the maximum payment will be $ 1,400 per person, but the new rules could bring your family a lot more money.
Depending on how Congress chooses to target new checks – for example, if there is an absolute income cap to claim – tens of millions of families could see the size of their next balloon. Others will receive less money in the third check, or none at all. Until the House and Senate discuss the final version of the bill, we won’t know all the details, including whether or not the $ 1,400 incentive check will adopt a new payment formula.
In addition, a change in incentive qualification or new life circumstances can also lead to a larger third test than you received in the second round. We will look at some hypothetical situations that might occur. This story has recently been updated.
Each dependent can count on $ 1,400
Dependent children do not receive their own checks, but in the first check they calculated $ 500 apiece, and in the second round, households received an additional $ 600 per child aged 16 and under. The Washington Post reported that a third incentive check could increase that figure to $ 1,400 apiece, which is close to the family’s total. So, in theory, a family of four meeting all income requirements could get a total of up to $ 5,600 (calculate your estimate here). It is unclear if there will be a limit on the number of dependents you can qualify for in this situation.
More dependents can qualify for a third check
Who is considered a dependent? The definition in the next stimulus package may change the response. At the first and second check-ups, a dependency was defined as any child aged 16 and under. But a growing chorus of voices, including Biden’s, are seeking to broaden the definition to include anyone you can claim on your tax returns, such as children over 16 and the elderly in your care. This will include dependent children of any age with disabilities. This week the House of Representatives is considering expanding the definition to include all dependents.
If Congress approves of Biden’s proposal – and again, this is still changing – it could bring your family more money by increasing the total number of dependents. It is unclear if the new qualifications will only apply to people excluded in the first two rounds as a surcharge, although this was not part of the public comment.
If you have a new dependent, your family can get more money
If you have given birth or adopted a new child, if an older relative is moving in with you, or for whatever reason you have received a dependent since the last checkout, you may see a larger checkout because you added a new dependent since the last incentive cycle. This time, families considered mixed may qualify for the payment.
According to Biden’s incentive plan, more families that are considered blended will be eligible for incentive testing. The second payment expanded the rules for the first check, allowing families of one of the spouses to be a U.S. citizen to be eligible for a check. Biden’s proposal will work with a lot of scenarios; for example, it could potentially provide cash incentives in the form of checks for a family of US citizen children with non-citizen parents.
If your work situation changes this year, it could affect your pay
If you become unemployed this year or your wages fall, this may lower your adjusted gross income, which is used to determine your benefit. For example, if you received a partial payment by the first or second check, the third check might bring you full payment if you no longer work.
What if you just got married and are filing a joint registration for the first time?
Depending on several variables, which include the registration status of your spouse and new dependents, a change in marital status may result in a larger check. For example, if you were single and filed alone, you received at most $ 1,200 the first time.