The IRS has started sending out the $1,400 stimulus checks

The IRS has officially begun sending out the third $1,400 stimulus checks to American households but not everyone will get their money at once. The $1.9 trillion American Rescue Plan will send out one-time direct payments to Americans who qualify.

The first batch of the stimulus checks will be issued to people who submitted details for direct deposit when they filed taxes for 2019 or 2020, according to the Treasury Department.

President Joe Biden signed the American Rescue Plan relief bill on Thursday, after months of disagreements between the Trump-administration and Congress Democrats.

The next group to receive the payments are taxpayers who didn’t provide direct-deposit information but provided the IRS with payment information from other programs.

The IRS will make direct payment electronically to taxpayers who filed direct deposit or provided their bank account information. Paper checks or debit cards will be mailed to those whose bank accounts cannot be determined by the Treasury.

Information on 2020 tax returns will be used to determine the eligibility and check amount of recipients. To calculate how much you could receive, you can make use of personal finance calculator website Grow. You will be required to fill in your filing status, annual income, and number of dependents you have. The IRS also said it will put on its Get My Payment feature for tracking stimulus checks and to show the payment status of each individual.

The IRS will use 2019 tax records of households that are yet to file their 2020 taxes, including those who used the “non-filer portal” for previous payment rounds.

Full $1,400 payments will be offered to those with adjusted gross income of up to $75,000 for individuals, $112,500 for heads of households, and $150,000 for married couples filing jointly.

Those with income above the threshold will have their payments reduced. This category includes individuals earning $80,000, heads of households that earn $120,000, and $160,000 for married couples filing jointly.

Americans who lost their jobs and are unable to file a tax return are being offered a new tax break on unemployment benefits. The new Covid-19 relief waives taxes on up to $10,200 of unemployment benefits each individual received last year. Filing for unemployment claims may make one eligible for the stimulus check, however, such an individual must file a tax return as soon as possible to reflect the income to the IRS.

The White House said it will take weeks to send the entire stimulus checks to over 100 million Americans. According to the Treasury and IRS, the first batch of stimulus checks went out last weekend through direct deposits and physical checks or EIP cards. The IRS added that the payments will reflect as pending or provisional payments in their bank accounts before the official payment date of March 17.

Stimulus checks delivery dates

• First direct deposit sent: March 12 (pending), March 17 (official)

• First paper checks sent: Week of March 22

• First EIP cards sent: Week of March 29

• IRS deadline for sending all the checks: Dec 31, 2021 (as mandated by the bill)

• Last date to receive checks: January 2022

• Claims for missing stimulus money: 2021 tax season