According to the Senate Finance Committee, Congress is expected to order the IRS to use either 2019 or 2020 income to determine eligibility when checks are ready to be distributed.
The Senate approved a budget resolution on Friday morning that will allow President Joe Biden’s $1.9 trillion stimulus bill to pass without Republican support. However, lawmakers have agreed to restrict high earners from receiving the third stimulus check of up to $1,400 and indicated that eligibility rules could be stricter than past direct payments. The Internal Revenue Service (IRS) will likely determine eligibility for the checks and amounts to be distributed based on people’s latest tax return filings. Taxpayers must file their 2020 personal return by April 15, but those who saw their incomes fall last year due to the ongoing coronavirus pandemic may want to file early to obtain a larger check. Conversely, those who saw their incomes rise in 2020 could receive a higher payment if they wait and file after the checks are distributed. According to the Senate Finance Committee, Congress is expected to order administrators to use the latest individual income on file—either 2019 or 2020—when the checks are ready to be distributed.
