Second stimulus check – when will I get it?
STIMULUS checks are a lifeline for many Americans as millions have lost their jobs and continue to face months of unemployment due to the country-wide coronavirus lockdown.
Below is a breakdown of what stimulus checks are and who is eligible for them.
What is a coronavirus stimulus check?
The first round of checks were part of the $2.2trillion economic relief package passed by Congress in March.
The package was a response to the economic impact of COVID-19.
Under the CARES Act, individuals received up to $1,200, while couples took home $2,400, plus an extra $500 per child 16 and under.
Payouts declined above the $75,000 to $150,000 mark, ending at $99,000 for individuals and $198,000 for married couples.
Who is eligible for a stimulus check?
To be eligible for the full amount, a person's most recently filed tax return must show that they made $75,000 or under.
If a person makes more than $75,000, the amount given goes down incrementally by $5 for every $100 increase in salary.
Will there be a second stimulus check?
Republican and Democratic lawmakers have yet to agree on the terms of a new coronavirus relief package.
The key issue dividing the parties is how much money they want to spend on a new package.
Democrats initially proposed a $3 trillion package while the Republicans proposed $1 trillion.
However, the proposed round of checks could give $1,200 to individuals, $2,400 to couples, and $1,200 per child – a bump from the $500 per child in the first round of payments.
Democrats put forward the Health and Economic Recovery Omnibus Emergency Solutions Act as a follow-up to the first round of stimulus checks.
March's CARES act - which stood for the Coronavirus Aid, Relief and Economic Security Act - provided for $1,200 checks to be sent to every adult whose income was under the threshold.
Children under 17 were eligible for $500 each.
The new HEROES act proposes another one-time check of the same amount for adults, subject to the same income limits.
But this time the amount for children matches that for their parents, and high school seniors and college students over 17 are now included.
So adults earning up to $75,000 ($150,000 for a couple) and up to three dependent children would get a further check for $1,200 each, capped at $6,000 per household.
The payments taper to zero for anyone earning above the income limits.
Immigrants are also included for the first time.
Unlike CARES, which required a social security number, to be eligible under HEROES you only need a taxpayer identification number — which is used by immigrants to pay taxes.
You can find out how much you could be in line to receive with this online calculator.
When will SSA stimulus checks be deposited?
That remains unknown as it is still not clear if the bill will become law.
HEROES passed in the Democrat-dominated House of Representatives, but has yet to pass the Republican-led Senate.
Senate majority leader Mitch McConnell insisted any second stimulus package would be smaller than the first.
Even if it did pass Congress, it could be vetoed by President Trump.
The Wall Street Journal reported the Trump administration is working on its own plan.
How will I know if you get the full amount?
It depends on your income.
Single adults who have an adjusted gross income of $75,000 or less will get the full amount, according to the NYT.
Taxpayers who are head of their household will get the full payment if they earned $112,500 or less, the Times reported.
However, residents with certain income levels will not be eligible.
For example, a family with two children will not be eligible for payments if its income surpassed $218,000, according to The Times.
Do we repay stimulus checks?
The payments are a no-strings-attached government aid that you won't need to repay.
According to Business Insider, there's no clawback provision in the CARES Act that enables the IRS to demand repayment.
The reason for not having to repay back the stimulus check is that technically it is a refundable tax credit which reduces your 2020 tax bill on a dollar-for-dollar basis.
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You usually cannot claim tax credit until you file your taxes since you don't know what you owe until the year is over.
Because of the severity of the national crisis, the government is giving the qualified taxpayers their credit early in the form of this stimulus checks.
It's an advance of a refundable tax credit — not an advance of your tax refund itself.