The payments are based on your 2020 income if you've already filed your tax return. "It goes to the parents, really, it doesn't necessarily mean the college student is going to get this check".
It is estimated that 85% of Americans will be eligible for the payments and the goal is to have millions of the payments disbursed in the next few weeks.
Biden said Thursday that the relief bill, which Republicans uniformly opposed as exorbitant, will give "the people of this nation, working people, the middle-class folks, people who built the country a fighting chance".
Individuals making less than $75,000 per year or couples making less than $150,000 combined per year are eligible to receive the full stimulus payments of $1,400.
For individuals, stimulus checks decrease to zero if you make $80,000 or more per year. In that case, there's no reason to worry - the IRS will use your 2019 tax return to determine how much you should receive. The IRS said it distributed more than 22 million stimulus payments previous year that weren't based on filed tax returns. The bank, Current, said customers were receiving their stimulus payments faster because some had updated their bank account information with the IRS when they filed their 2020 tax returns - and added that some accounts had received stimulus payments as high as $9,800.
Officials said in the interest of speeding up the relief payments, the IRS will use the latest tax return available, either the 2019 return filed previous year or the 2020 return that is due by April 15.
The check will be distributed by the IRS, likely by direct deposit if the agency has your banking information.
People should file an electronic return in 2020 to ensure faster processing of their taxes, as well as their refunds and stimulus payments, IRS and Treasury officials said on Friday.
For the CARES Act passed in March 2020, mixed-status households that included family members with different immigration or citizenship classifications were excluded from receiving payments.
Those with incomes above these limits will have their payments gradually phased out. In the $900 billion relief package passed in December, Americans and green card holders were made eligible through a bipartisan agreement to receive stimulus checks, even if they filed a tax return with an undocumented spouse.
Single parents with at least one dependent who earn $112,500 or less also get the full amount.
If that person hasn't filed their 2020 return yet, they won't receive a stimulus payment because the IRS will base its calculation on their 2019 return, which showed they aren't eligible.
The IRS and Treasury Department will begin sending out checks as soon as this weekend, but it could still take weeks for some Americans to receive their payments, CNET reported.