Using direct deposit will make a big difference as the new round of the IRS stimulus will begin with those who use the service for their taxes.
The United States federal government is rolling out the latest stimulus payments. After the $1.9 trillion American Rescue Plan was successfully passed, payments are now beginning to arrive.
However, they aren’t coming at the same time for everyone. For those who use direct deposit when filing taxes, specifically in the 2019 and 2020 tax years, they’ll be getting the $1400 payment first.
This was confirmed to NBC by an official in the U.S. Treasury Department. Payments are hitting bank accounts as soon as the weekend of March 13 and March 14, per the White House.
Additionally, the payments are in fact coming in a lump sum. The full $1400 will hit accounts all at once.
After those with direct deposit information receive their checks, the next group with priority are those who the IRS has their payment info through other programs. For those who haven’t offered that information, the IRS stimulus will come through checks or debit cards, per CNBC.
More Information on IRS Stimulus
The primary source that the IRS is working off of are 2020 tax returns. This will not only determine who is eligible for the IRS stimulus, but also the amount they will receive.
The main factors are how much a person’s yearly income is and also the designation of the taxpayer. For the full payment, an adjusted income of $75,000 or less is required. For heads of households, the amount is $112,500 and for joint-filing married couples, it’s $150,000.
The max amount of reported income that keeps a taxpayer eligible for the IRS stimulus is $80,000. That translates to a max of $120,000 for heads of households and $160,000 for joint-filing married couples.
While there is momentum in terms of U.S. citizens getting vaccinated, the U.S. government has steadily continued working towards the stimulus package. That comes to a head as citizens begin receiving the $1400.