This Is Why You May Not Get the Third Stimulus Check
A new plan will shut out many Americans from receiving new payments.
Stimulus checks have come to the aid of many Americans over the last year, as the coronavirus pandemic has left the country in financial disarray. The federal government has sent two stimulus checks so far—one last spring and one in the winter—and as spring rolls around again, residents are awaiting the third. Congress is currently in the middle of negotiating and approving a third stimulus check for $1,400, as promised by President Joe Biden. However, there is a chance that you may not actually get the third stimulus check at all. Read on to find out if you no longer qualify for the next payment, and for more guidance on the stimulus, If You're Waiting on a Stimulus Check, Read This Before Filing Your Taxes.
You won't get a stimulus check if you make more than $80,000.
On March 3, Biden agreed to stricter income limits on the third stimulus checks, according to The New York Times. The new proposal says that no individuals making more than $80,000 and no couples with incomes exceeding $160,000 will receive payments. Single parents who make more than $120,000 will also be barred from receiving a payment. This is $20,000 lower than the income caps were for the last stimulus checks. And for more financial news, This Popular Department Store Just Filed for Bankruptcy.
You won't receive the full stimulus check if you make more than $75,000.
Under this plan, only individuals making $75,000 or less will receive full $1,400 checks. Couples making a combined income of $150,000 or less and single parents making $112,500 or less will also receive the full amount. However, if you make more than this, your payment will gradually decrease depending on how much more you make. It will cap out completely at the $80,000-, $120,000-, and $160,000-mark for individuals, single parents, and couples, respectively. And for advice on savings, check out these 15 Money-Saving Tricks Only Walmart Insiders Know.
Biden's original proposal had higher income caps.
This was not the plan Biden originally proposed, however. Under his initial proposal, the income caps would have been set at $100,000 for individuals, $150,000 for single parents, and $200,000 for couples. This plan was passed in the House (which currently has a Democratic majority) on Feb. 27, but The New York Times says Biden agreed to the new, narrower proposal in order to pass the legislation through a more evenly split Senate. And for more up-to-date information, sign up for our daily newsletter.
This will keep millions of Americans from receiving the third stimulus checks.
While some may not see these new income caps as that much lower, the new proposal will keep many Americans from receiving a third stimulus check. According to estimates from the Institute on Taxation and Economic Policy, nearly 11.8 million people won't receive the third stimulus check with this new plan, but would have under the plan that was originally passed by the House. And for more on your finances, This Is the State Where Your Money Is Worth the Least.