House lawmakers will take up the Biden administration's $1.9 trillion stimulus proposal this week, moving toward approval of a bill containing a third stimulus package worth $1,400 and an increase in unemployment assistance for the time being.

Under the current proposal hammered out by nine different House committees on Friday (February 19), taxpayers with up to $75,000 and joint filers with up to $150,000 would receive the full $1,400 directly.

Taxpayers up to $100,000 and $200,000, respectively, would receive a pro-rated check, while those above that amount would not. In addition, children and adult dependents would receive the full $1,400.

The DPW bill also increases the weekly subsidy for federal unemployment benefits from $300 to $400 and extends the program through August 29. The current federal assistance program ends in mid-March.

The bill also includes a number of other Democratic priorities, including raising the federal minimum wage to $15 by 2025.

The income cap for receiving stimulus checks is slightly higher than the first round of checks under last spring's CARES law and the second round of checks under legislation passed in December.

The main reason for this is that the amount paid this time is $1,400, not $1,200 or $600. However, the pro-rated formula for reducing check size when income is above the base amount is more aggressive this time around.

Had the formulas of the first two stimulus bills been applied to Biden's plan, the final income cut would have been $103,000 for individuals and $206,000 for joint taxpayers.

The new formula reduces the stimulus by 5.6 cents for each dollar of income above the $75,000/$150,000 threshold, rather than 5 cents per dollar as in the first two bills.

In other words, an individual with no dependents and adjusted gross income of $90,000 on his/her last tax return would receive a check for $560 instead of $650. Click here for a third stimulus check calculator to calculate how much you would receive in your situation.

The new bill will first be considered by the House Budget Committee, perhaps as early as today (February 22). If it passes the committee as expected, it could be voted on by the full House as early as next week.

The bill is then expected to face an uphill battle in the Senate, where most Republicans have made it clear they do not support the plan.

Democrats are using budget reconciliation to promote the bill. This is the process by which certain types of legislation are passed through the Senate by a simple majority vote, rather than the usual 60% bipartisan vote. In other words, Democrats do not need Republican votes for a bill if all Democrats vote for it.

However, some centrist Democrats may oppose certain provisions, such as raising the minimum wage. Republicans may also argue that raising the minimum wage is not subject to the budget-focused reconciliation process and has little to do with pandemic relief.

Despite concerns in Congress about the size of the bill, a recent poll of 3,000 Americans found that 72% of respondents support Biden's $1.9 trillion stimulus package.

The next direct payments will be based on 2019 or 2020 tax returns. If your 2020 income was less than your 2019 income due to unemployment, furloughs, or underemployment, you could get a larger stimulus check if you file your 2020 return in the next few weeks.

If you do not receive a second stimulus check and believe you qualify, you may claim a credit on your 2020 return for the amount paid. Use the Recovery Rebate Credit on Form 1040 or Form 1040-SR, line 30.