President Joe
Biden signed $1.9 trillion Covid-19 economic relief package with benefits
including a third round of stimulus payment into law on Thursday afternoon.
It will provide
those households with up to $1,400 per qualifying person. For the millions of
Americans who have lost income due to COVID, this will provide at least some
relief. For others, it will help meet needs that they would otherwise struggle
to afford.
How Much Can I Receive from the New Relief Package?
According to
cnbc.com, American families who meet the income thresholds will receive a $1,400 stimulus check, the
definition of a qualifying dependent has broadened to include both children and
adults of any age who fit the legal criteria.
An average
family of four (two parents and two dependents) could receive a total $5,600.
Here are the
income limits for receiving a full $1,400 stimulus check:
- Single
taxpayers with an adjusted gross income below $75,000 (phases out completely at
$80,000 or above)
- Head
of household taxpayers with adjusted gross income below $112,500 (phases out
completely at $120,000 or above)
- Married
taxpayers filing jointly with adjusted gross income below $150,000 (phases out
completely at $160,000 or above)
When Will My Payment Arrive?
Americans will
start seeing stimulus checks in their bank accounts as early as this weekend.
The checks will
begin to hit bank accounts this weekend for those who have their direct deposit
info on hand at Treasury and the IRS. Be aware that the volume of users
sometimes overwhelms the site.
How Would People Spend the “Free” Money?
U.S. Census
Bureau data showed many Americans, especially in lower-income households, used
their checks in the same way: to pay for daily essentials like groceries, gas
and utilities.
- The
average U.S. household spends $21,378 per year on bills, or about $1,782 on
expenses each month, according to bill pay service doxo’s latest research.
- The
largest chunk of that spending is on housing: The average American spends about
$1,268 a month on mortgage payments or $1,023 on rent.
- The
average car payment, for instance, is about $374 a month, while utilities tend
to average about $290 a month.
- About
10% of Americans are planning to use the stimulus payments to pay off credit
card debt.
More than
one-third of respondents in a Bloomberg/Morning
Consult survey
said they will save a significant amount of the money if they get the third
stimulus check.
That compares with 23% who said
they did so in April last year, when the government sent out $1,200 checks
under the Cares Act, and 26% of those who got the $600 checks Congress approved
in late December.
Of the households earning less than $50,000 a year, only 17% of
respondents said they saved money from the checks last spring—but 29% expect
they will be able to do so this time.
References:
- cnbc.com
- abcnews.go.com
- bloomberg.com
- cnn.com
- nytimes.com
