Treasury Dept. submits to IRS distribution plan for $1,400 incentive
Treasury Secretary Francisco Parés submitted Thursday to the Internal Revenue Service (IRS) and the US Department of the Treasury, the plan to distribute the new $1,400 economic stimulus signed by President Joe Biden, which could reach $3.5 billion and benefit some 2.6 million people.
“With the rescue plan converted into law and at the urging of Gov. Pedro R. Pierluisi for the aid to arrive, we submitted to the IRS and the US Treasury the first draft of our distribution plan for the economic impact payment of $1,400,” Parés said.
“The process prior to final approval should take about four weeks and we’ll use that time internally to prepare and initiate disbursements as soon as we receive the go-ahead,” he said.
The millionaire financial aid package will be distributed to individuals residing in Puerto Rico, with a valid Social Security, who have not been claimed as dependents and have not died before Jan. 1, 2021.
“This aid program is more comprehensive than the first ones we worked with, because it will benefit all members of the family, regardless of age. For example, a married couple with two children could receive a stimulus of $5,600 or $1,400 for each member,” Parés said.
The American Rescue Plan Act of 2021 establishes that individuals with incomes up to $75,000 or $150,000, in the case of married individuals filing jointly will benefit. Heads of households with a salary of $112,500 will also be eligible.
Disbursements will be based on the 2020 Income Tax Return, in the case of those who have already filed or the 2019 return, if not.
In the case of people who do not have the obligation to file a return, Treasury will use the information from the alternate form that was prepared to send the aid in 2020. It is estimated that most payments will be made in four or five weeks, after the plan is approved.
The deadline to complete disbursements is Dec. 31, 2021.