The latest batch of stimulus checks will go out to 1.8 million homes under the American Rescue Plan. The IRS announced this Wednesday that the stimulus check has an effective payment date of May 26 were sent out in the past two weeks. The total value of the payments made to date under the Economic Impact Payment stands at $391 billion from 167 million payments.
Close to half of the total payment of $1.9 billion was sent to people who have filed the 2020 tax returns recently. Many plus-up payments were also sent.
These follow-up payments are mostly sent to people who have freshly filed their 2020 returns just before the extended last day on May 17. Around 900,000 people are up for a plus-up payment this week.
The total plus-up payments sent to date are around 5 million with payments of around $9.1 billion.
Stimulus Checks Based On Adjusted Gross Income
All payments are based on the Adjusted Gross Income of the last tax filings and the eligibility has been pared down for the third stimulus payments. Individuals earning under $75,000 are eligible for the full $1,400 checks. For married couples filing jointly, the maximum amount is for those earning below $150,000. The payments phase out if individual earnings cross $80,000. Families earning more than $160,000 will not receive any stimulus payment.
Around 87% of the total $450 billion marked for direct relief have already been sent, the IRS said in a press release.
Weekly Payments To Continue
The IRS will continue the weekly round of payments. Most payments will now go to people who have filed their tax returns for the first time. They might get their first check or qualify for additional payment, also called plus-up payments.
Other than a fresh calculation based on the 2020 tax returns, a follow-up payment may also be sent if a child was welcomed into the family in 2020. The addition of any new dependents could also increase the stimulus check amount by $1,400 for each additional individual.
