A Second Stimulus Check Appears to Be On the Way
A second stimulus check seems to be on the way! After a breakthrough on Saturday night, it now looks like Congress will agree on a new COVID-19 relief bill that includes a second round of stimulus checks. While nothing is final, some preliminary details are available from various reports. We know you have questions. Here are some possible answers. (Nothing is final here either - legislators can change direction at any time before final adoption.)
Amount of your second stimulus check
Although higher amounts have been discussed, it looks like the second base amount for stimulus testing will be $ 600. That's half of the first-round payments approved by the CARES law back in March. Families are also expected to receive an additional $ 600 for each child. For example, a family of four could get a second stimulus check for $ 2,400.
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We don't yet know if children must be 16 years or younger to qualify for the additional $ 600 amount (as with the first round payments). We also don't yet know if other dependents - such as college students aged 23 or under, or older adults living with their children - are eligible for the additional $ 600 payment.
As with the first round payments, it appears that higher-income Americans are having their second stimulus check reduced or eliminated. According to the CARES law, the stimulus payments were suspended in the first round depending on your income and the status of the tax return. If your registration status was single, married filed a separate tax return, or eligible widow (s), your first incentive payment was reduced if your Adjusted Gross Income (AGI) was between $ 75,000 and $ 99,000 (you didn't receive a payment if your AGI was higher than $ 99,000). If you're married and filed a joint tax return, if your AGI was between $ 150,000 and $ 198,000, the amount of your first stimulus check will have decreased. And if you claimed householder status on your tax return, your payment was reduced if your AGI was down from $ 112,500 to $ 136,500. We expect a similar exit system for second stimulus tests to be introduced.
Time of the second stimulus test
The IRS began sending out round one stimulus checks approximately two weeks after the CARES Act came into effect. Since the IRS already has the payments infrastructure, it should be able to replicate this turnaround time - and possibly even improve it. However, we do not expect second stimulus checks to arrive before the end of the year. However, we expect the majority of eligible Americans to receive a payment in January.
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If the IRS already has your bank account information from a previous tax return that they used for a tax refund payment, you can expect to receive your second stimulus check sooner. This is because the IRS can deposit your payment directly into your bank account. You may also be able to use a direct deposit payment if they got your bank account from a tax payment you made to them. That was not allowed under the CARES law, but it could be allowed under the new economic law.
If you're getting benefits from the Social Security Agency, Railroad Retirement Board, or Veterans Administration, the IRS may also be able to add your second business boost to your performance-based account.
Social security numbers
One of the questions lawmakers debated was whether a social security number is required to receive a second stimulus check. Under the CARES Act, you usually had to have a social security number in order to receive payment. Spouses and children who qualify for the $ 500 additional payment also need a Social Security number.
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However, some legislators want to reject this requirement. Instead, they want to give anyone who has a tax identification number (TIN) a second stimulus check. Allowing payments to people with a TIN instead of a Social Security Number will allow certain non-US citizens who cannot get a Social Security Number to receive an incentive payment. This is a controversial move, so we don't know if this type of requirement will be included in the new invoice. It's more likely a Social Security number will be required - but we'll have to wait again.
Additional stimulus tests
As with the first round of checks, the new stimulus package only provides for one additional payment. However, some lawmakers see this latest package as a stopgap measure to remedy the situation pending further relief after the inauguration of President-elect Joe Biden. So will there be a third round of stimulus checks? It is a possibility.
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