How much and when?

A look at possible stimulus payments as vote nears

With possible exception of how to get the COVID-19 vaccine, the latest stimulus package to come out of Washington — and what it will mean for their pocketbooks — is top of mind for many Connecticut residents, particularly those who are low-wage or unemployed workers.

If approved by the House of Representatives this week, this will be third stimulus package since COVID-19 rocked the nation’s economy. Once the bill becomes law, the Internal Revenue Service will process more than 100 million payments, which will be sent out via one of several delivery methods.

Here are some answers to frequently asked questions about the next round of checks.

Who is eligible to receive the checks?

For single taxpayers, anyone who has an adjusted gross income of less than $75,000 is eligible for the full $1,400, according to Sara Spodick, director of the Tax Clinic at Quinnipiac University, a group that helps low income individuals deal with their problems with the IRS.

If your gross adjusted income is between $75,00 and $80,000, the $1,400 is reduced through what is called a “phase-in.” For individuals who file jointly, the adjusted gross income is capped at less than $160,000. The IRS will base the size of your stimulus payment on the information contained in an individual’s 2019 tax returns.

How much can I expect to receive?

For an individual taxpayer, the typical amount you can receive is $1,400, Spodick said. Because rules governing the third stimulus payments are still in flux, it’s difficult to determine the minimum amount someone could receive.

Do individuals get more than $1,400 if they have any dependents?

Yes. For example, a single person with a dependent child would get $2,800 in stimulus money.

In previous rounds, college students were not considered dependents. This time, an additional $1,400 goes to individuals who filed the 2019 tax return for each college student.

One caveat, Spodick said, is that if a college student collected unemployment last year, the money would go to them instead of the individual who filed the taxes.

What if I had a baby in 2020?

If you had a baby during 2020, the child would be declared as a dependent. Spodick said the tax filer would be eligible to be claimed as a Recovery Rebate Credit on the 2020 federal income tax filing next spring.

When am I likely to receive my stimulus check?

That depends on when the latest bill is signed into a law, which is likely to happen by March 14. If so, the first payments will be sent out before April 1. Those who have direct deposit capability at their banks and credit unions will likely get the first payments.

Those receiving a stimulus payment via a physical check or an economic impact payment (EIP) card will start seeing their money from the government later in the month.

These estimates come with a caveat: The IRS could get bogged down in process of issuing checks, which could push the arrival of government payments into May.

“This is a busy period for the IRS,” Spodick said. “They are processing 2020 tax returns in addition to sending out the stimulus payments.”

Who do I contact if my payment doesn’t arrive?

About two weeks after the IRS has sent out your payment, you should get a letter from the agency confirming the payment and telling how to contact the agency if there are any problems.

If you don’t receive your payment or a confirmation letter from the IRS, Spodick, you’ll likely have to file for the money as a Recovery Rebate Credit in your next tax filing.