Section 6428B of the Internal Revenue Code was added by the American Rescue Plan Act of 2021. As part of President Joe Biden’s $1.9 trillion coronavirus stimulus programme, it authorised payments of up to $1,400 to qualifying individuals — $2,800 for joint filers — plus another $1,400 for each qualifying kid.
It was the country’s third major pandemic recovery bill.
Those payments were made at a time when the vaccine debate was heating up and inflation was beginning to climb. A lot of payment-related information got lost in the shuffle, and the consequences are still being felt today.
Hundreds of Millions of People Received Hundreds of Billions of Dollars
According to the Internal Revenue Service, the third batch of stimulus funds totaled roughly $390 billion. The great majority of payments (almost 138 million) were made electronically. Another 21 million or so were sent as paper checks, with a total of 4.56 million paid with debit cards.
In comparison to the previous round of checks, the third round increased access to payments for numerous populations, including 13.5 million additional dependents who qualified for their families’ payments. The income limitations were also tightened in round three. According to CNET, around 16 million people who were eligible for the second round of payouts are unlikely to be eligible for the third.
Hundreds of Millions of Dollars Were Sent Overseas
According to CNBC, more than 3.7 million payments totaling $5.5 billion were paid to more than one-third of the 9 million or more U.S. residents living abroad during the three rounds of stimulus. However, because it includes citizens of US territory like Puerto Rico, the word “overseas” might be deceptive. Many checks were also sent to military personnel stationed abroad and American residents residing in other countries.