New stimulus check: Families are getting MORE money for each child – and payments WON’T be taxed
FAMILIES are getting more money for each child under the new $900billion relief deal and payments won't be taxed, reports say.
Dependent children will get the same $600 stimulus checks as adults under the new deal, which was passed by on Monday, with families of four pocketing $2,400.
The paperwork is on its way to 's desk with confirming that – meaning hard-hit households could get this payment within weeks.
The $600 payment for dependents is up from the $500 checks that children received through the Cares Act earlier this year.
But the $600 will be directed toward each dependent child under 17 years old, meaning dependents like college students and older high school students won't qualify for the checks.
Because the IRS doesn't consider stimulus payments to be income, Americans won't be taxed on these checks, reported .
Additionally, the IRS won't use it to pay back any taxes you owe so it won't decrease your 2021 tax refund in or up the amount you owe when you're filing.
The individual payout for people earning $75,000 and married couples earning $150,000 has been slashed in half, reported .
The amount of payment people will get is reduced by $5 for every $100 of income earned above those thresholds, per the House .
Another change is that couples who include an immigrant without a Green Card would also qualify for the checks unlike the Cares Act controversy.
People claimed denying people payouts because of their parent's or spouses immigrant status was unconstitutional and prompted lawsuits.
The package summary noted this "successfully pushed for a provision, which is retroactive to the Cares Act, to expand these direct payments to mixed-status households, importantly providing immigrant families across the country with access to this financial relief."
On Monday, Treasury Secretary said checks could land in bank accounts starting early next week.
"The good news is this is a very, very fast way of getting money into the economy. Let me emphasize: People are going to see this money at the beginning of next week," Mnuchin said.
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This is significantly quicker than the Cares Act which took a whopping 19 days to roll out – and some people didn't receive theirs for months.
As well as the , it includes an extra $300 weekly federal unemployment benefits, small business aid, and funds for schools and universities.
People who are out of work will get their regular state unemployment payments as well as $300 on top of that through March 14, 2021.