Treasury Secretary Steve Mnuchin said Wednesday he hopes the federal government can deliver checks to the American people by April 15 – the same day Americans would normally be sending the federal government their cash.
Under the coronavirus stimulus bill set to be passed by the Senate, Mnuchin said many Americans would receive stimulus checks “within the next three weeks.”
The $2 trillion bill is expected to provide $1,200 direct payments to many Americans, up to $3,000 for a family of four.
“Our expectation is within three weeks we will have direct payments out where we have depository information. We’re looking to get a lot more information and we have procedures to do that,” Mnuchin said.
“Our expectation is this bill passes tonight,” Mnuchin said of the Senate’s plans.
Mnuchin said the amount an individual receives will be delivered via direct bank deposit for those who have it set up with the Internal Revenue Service or via check for those who don’t.
“Under the latest proposal, adults would receive a lump-sum check of up to $1,200 ($2,400 for joint tax returns), and those with little or no tax liability would get at least $600 ($1,200 for joint returns),” USA Today writes.
“Families would receive an additional $500 for each qualifying child,” according to USA Today. “The amount you receive would be decreased by 5% of the amount your income exceeding $75,000, and individuals earning more than $99,000 wouldn’t qualify at all.”
NY1 set out some guidelines:
Single adults earning up to $75,000, heads of households earning up to $112,500, and married couples filing jointly earning up to $150,000 per year in gross adjusted income will receive a one-time payout of $1,200, plus $500 for each child.
That amount decreases by $5 for every $100 in yearly income above that amount.
Single adults earning $99,000 per year or more, and couples earning $198,000, would get nothing. Your income will be based on your 2018 tax returns.
Trump also said at his daily briefing that Democrats are playing politics.
“I think there are certain people who would like it not to open so quickly, and they think that would be very good as far as defeating me at the polls,” Trump said. “I think it’s very clear that there are people in your profession that write fake news.”
But the president – who earlier this week said he could see relaxing the 15-day guideline he set in place March 16 for Americans to self-quarantine – raised possibility that he could extend the deadline.
“I’m not going to do anything rash or hastily,” he said. “I don’t do that.” Trump also said, “America continues to gain ground in the war against the virus.”
Trump implored Congress, which has been gridlocked over the stimulus bill, to move swiftly.
How you receive your cash depends on how you get your tax refunds. If you have direct deposit with the IRS, you’ll get your money faster than if you have to wait for a check to be mailed.
When you get your money is a bit more up in the air. According to New York Sen. Kirsten Gillibrand, checks should be sent out two weeks after the bill passes. Treasury Secretary Steven Mnuchin said it would take three weeks for payments to be sent. Keep in mind, the Economic Stimulus Act was passed on February 13, 2008. The first payments went out in late April.
One more thing to consider: we don’t yet know if the money will be considered a loan or a gift. If it’s a loan, you may have to pay at least part of it back in a future tax filing. If it’s a gift, it could be taxable income.