The Internal Revenue Service has claimed that it has dispatched coronavirus relief stimulus checks to more than 90 million Americans under President Joe Biden’s American Rescue Plan.
The first batch of payments was distributed mainly by direct deposits. Some eligible candidates have reported that they had received pending payments in their bank accounts before Wednesday which was the official payment date. The IRS has started rolling out $1400 stimulus checks also known as ‘Economic Impact Payments’ in successive batches, called ‘tranches’.
As of Wednesday, all the recipients will be able to access their funds who have received direct deposits, an official of IRS declared.
An initial payment of $242 billion was sanctioned for the first round of $1400 stimulus checks, going primarily to all the taxpayers who had provided their direct deposit information on the 2019-2020 tax returns.
The taxpayers’ list also included people who might not have filed a return but provided information to the IRS last year through its online tool specifically generated for non-filers.
Another 150,000 paper checks worth $442 million were mailed to eligible Americans by the Treasury Department.
IRS has claimed that additional payments are scheduled to be processed in the coming weeks by direct deposit, via mail, or through debit cards.
Under the COVID-19 Relief Plan, individuals are eligible to receive $1400 stimulus checks if their gross income is less than or equal to $75000, and for a couple, the income should not exceed $150,000. They can receive an additional payment of $1400 for each dependent child.
The phase-out amount for individuals is $75,000 and this time around the cut-off is at $80,000 for individuals. For the couples filing jointly, the phase-out starts at $150,000 and the cut-off amount is $160,000. For those filing as head of household, the phase-out amount starts at $112,500 and the cut-off amount is $120,000.
