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House Democrats were released yesterday a draft of the auxiliary laws This includes new details on the proposed $ 1,400 stimulus payments. No changes to the income threshold are currently required to qualify for the exemption exams. This time the relatives receive the full amount. Here is a summary of the plan that has yet to pass both Houses of Congress and is legally signed by President Biden.
A third round of stimulus testing
If approved, checks totaling $ 1,400 will be sent to individuals earning up to $ 75,000 per year (or $ 2,800 for married couples earning up to $ 150,000). In particular, unlike previous stimulus rounds, adult family members – including disabled adults and students – would be eligible for payments and all family members would be entitled to the full amount.
However, the payments expire faster than previous rounds of checks and hit $ 0 once individual income reaches $ 100,000 and married couples income reaches $ 200,000. The tables are based on the adjusted gross income (AGI) of taxpayers, which can be from either 2019 or 2020 tax year.
Republicans have opposed the cost of Biden’s plan, calling for “more targeted” relief – closer to $ 1,000 for those earning less than $ 40,000 a year. Democrat Joe Manchin, a key vote in a stalled Senate, has also criticized the proposed income thresholds. However, this week he said he would support the legislation if House Democrats “can show that $ 75,000 and $ 150,000 are really in need”. to Politico.
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When can you expect the third stimulus check?
House spokeswoman Nancy Pelosi wants the aid package in the The next two weeks with a process called Budget adjustmentalthough there is no certainty that this will happen. Other democratic lawmakers have specified They hope to let the aid package pass by middle of Marchwhen unemployment benefits expire without action by Congress. CNET predicts that a bill passed on March 2nd would mean direct deposits would be sent the week of March 12th and checks would be mailed the week of March 29th (you can More timeline projections can be found here).
What else does the proposed aid plan contain?
The legislation also proposes an increase in the federal government’s temporary increase in weekly unemployment benefit from $ 300 to $ 400. These benefits would also be extended until August 29, 2021.
Extended tax credits and benefits
House Democrats will increase that too Child tax credit Up to $ 3,600 for children 6 and under or $ 3,000 for children 17 and under (currently the child tax credit is $ 2,000 per child under 17). In particular, these would be payments paid monthly, not just as a credit that you would claim when filing your taxes. additionally Tax credit for children and dependents will be expanded to allow some families to claim up to half of their childcare costs.
The aid package will also improve the earned income tax credit for workers without children by nearly tripling the tax credit maximum credit and expanding eligibility.
Advanced health care cover
According to APThe bill would also cover 85% of the premium cost for workers attempting to maintain their work-related health insurance after they are laid off. The bill also provides funds to subsidize COBRA coverage until the end of the fiscal year. Health care grants are also promised for the unemployed who are not eligible for COBRA.
Increase in the minimum wage
The legislation is also included an increase in the minimum wage to $ 15 an hour, despite heavy opposition in Congress. Joe Biden did recommended that the measure may not make it into the final bill.
Funding for federal agencies, schools, and transportation
The package includes $ 130 billion for K-12 schools, $ 50 billion for FEMA $ 40 billion for colleges and universities and $ 39 billion for childcare providers. There is also $ 30 billion earmarked for difficult public transportation that has greatly reduced driver numbers due to the pandemic. Rental property owners and people at risk of homelessness would also receive $ 25 billion.