Stimulus Payments Could Be Sent This Week If House Passes Bill

The House is expected to pass President Joe Biden's $1.9 trillion American Rescue Plan this week, which means the Internal Revenue Service will likely begin sending out a third direct stimulus payment to many Americans.

The Senate narrowly approved Biden's wide-ranging relief package on Saturday and sent it back to the lower chamber for passage. House leaders say that vote will occur Tuesday. It is then expected to be sent immediately to Biden's desk.

Most Americans who earned up to 80,000 in their 2019 or 2020 federal tax return, whichever they have filed more recently, would receive a payment under the new package. For those who earned between $75,000 and $80,000, the amount will be gradually scaled down from $1,400.

The $1,400 amount is effectively a fulfillment of the $2,000 payment Democratic and some Republican lawmakers unsuccessfully sought to give in December when President Donald Trump was still in office and the Senate was still under Republican control. Instead, the GOP-controlled chamber eventually authorized a $600 payment that went out at the end of December.

Once Biden signs the bill, the IRS will begin sending out the new payments within days, perhaps as soon as this weekend.

"By next weekend, a couple making less than $160,000 could well have $2,800 deposited into their checking account," Chris Krueger of Cowen & Co. told CBS News.

Americans with direct deposit information already on file with the IRS will receive the payments first before those who receive paper checks.

There are a few eligibility differences with the new payment compared with the previous two.

The new payments will go to most Americans if they earn less than the capped income amounts. Biden and moderate Democrats in the Senate agreed last week to impose new restrictions on income limits, largely because the moderates had the power to block passage of the bill. That led the bill to phase out payments entirely for people making between $80,000 and $100,000, who would have received a payment under the initial plan.

One of the significant changes for the new payment is that parents will receive $1,400 for both child and adult dependents, which was not something the first two payments covered. This includes college students and some people with disabilities.

Also, Americans who owe back child support payments would be eligible for the new stimulus payment, something they did not qualify to receive for the first payment a year ago.

Additionally, qualifying Americans will also receive an increased tax credit of $3,000 per child under the proposed package.

Who is eligible for a stimulus payment (under the bill passed by the Senate):Single filers who earn up to $80,000 per year (full payment up to $75,000)Head of Household filers who earn up to $120,000 (full payment up to $112,500)Couples earning up to $160,000 (full payment up to $150,000)Child and adult dependents of qualifying earners ($1,400 each)Qualifying U.S. citizens living abroad and in U.S. territoriesSocial Security Disability Insurance recipientsAmericans who owe back child supportAmericans who owe back taxes

Who is not eligible for a stimulus payment:Non U.S. citizensMigrants who pay taxes but are not naturalized citizens

Eligibility unclear/to be determined:"Mixed" households, or homes headed by one U.S. citizen and one noncitizenIncarcerated Americans

Missing from the final bill passed by the Senate and taken up by the House is a measure to increase the minimum wage nationwide to $15 per hour. A Senate parliamentarian ruled that the raise could not be included in a bill being passed under the budget reconciliation process, which has allowed Democrats to pass Biden's rescue plan without any Republican support.