More cash per dependent is one of the key elements of the new package before Congress for consideration.
At least four reasons could make the stimulus check being pushed by the Biden Administration as part of the $1.9 trillion coronavirus economic package represent much more money for recipients compared to the previous two.
Increase in base amount
For starters, the base amount per person is $1,400, which more than doubles the second round’s base figure of $600.
In that sense, the upcoming third check has been announced as an addition to the $600 to reach the $2,000 figure, even though more progressive Democrats prefer the base amount of the third check to be $2,000 rather than $1,400.
In the first round under the CARES Act, the initial amount was $1,200.
However, the figure contemplated in the stimulus package before the federal Congress means much more money up front if the person is income-eligible.
Dependent credits
The second item that will make the next “economic impact payment” larger is the dependent credits. The bill being pushed by Joe Biden and his team provides for $1,400 for each dependent regardless of age.
Past bills have set lower amounts per dependent and left out seniors such as college students and disabled adults. But, if the current proposal passes, more people would fall into this category, which would increase the size of the third check for thousands of recipients.
In the first round, only recipients with minor dependents were eligible for the $500 credit up to a maximum of three children.
In the second bill, the credit was extended to $600 with no limit on the number of minor dependents per household.
Extension of aid to mixed marriages
Another detail that implies more money for families benefiting from the coronavirus financial aid approved by Congress is that mixed marriages, where one spouse is a citizen and the other is not, will receive the funds.
As part of the first round of $1,200 payments – both documented and undocumented – were excluded from the assistance.
In the second bill, provisions were included so that Americans who file a joint tax return with a spouse who uses an Individual Taxpayer Identification Number (ITIN), rather than a Social Security number, will be eligible for the funds, and can also apply for the previous $1,200 check plus dependent credits.
As part of the third round, that clause is expected to remain in place.
Tax returns and drop in reported income
A fourth element that would increase the amount of money a taxpayer receives is a decline in income levels in 2020 as a result of the pandemic.
Over the past year, millions of Americans have lost their jobs due to the economic crisis caused by the pandemic.
This could mean not only a more generous refund at tax time, but the possibility that even those who were not eligible for the first stimulus payments will now be eligible if their income reflects a decline in 2020.
The bill being handled by Democrats provides that, initially, the Internal Revenue Service (IRS) will examine eligibility and payment amount based on 2019 and 2020 tax returns or the most recent one available.