The good news: Congress agreed on Monday to afor $600 as part of . The not-good news: President Donald Trump on Tuesday said the $600 payments were a “disgrace” and .
So what happens now? If Trump does sign the bill, how soon could you get it and what’s this about a? How much , and can you ? Which rules have changed in the that could make new people — or ?
We can help answer your questions about aand more, including which you’d be in and what we know today about a (yes, you read that right). We also walk you through your stimulus check rights and other key facts you need to know right now. This story recently updated with new information.
The new $900B stimulus bill with a $600 check is ready for Trump to sign but…
Late Monday, the House and Senate overwhelming passed, with a . The nearly 5,600-page piece of legislation is being prepared for to Trump to sign, or not sign.
…Trump wants Congress to bump the direct payment amount to $2,000 per person
A day after Congress approved the bill, on Tuesday, Trumpwith its “ridiculously low” $600 check and approve instead payments up to $2,000 per individual.
White House and Congressional leaders have thrown out a handful of dollar amounts for the second check over the last month. The administration has been pushing for a $600 payment for weeks, and some in the Senate recommended the bill include no check at all.
A proposal for a $1,200 check failed to gain traction last week, when Sens. Josh Hawley, a Republican, and Bernie Sanders, an independent, couldn’t bring a standalone bill (PDF) for a $1,200 stimulus check to a vote.
The $600 second stimulus check shifts key qualifications
TheCongress approved on Monday as part of the changes several things from the first check. To start, obviously, is the total amount you will get: Up to $600 per and $1,200 for married couples filing jointly — yes, this is , but more on that below.
Second, the amount of the payment is based on a sliding scale similar to what Congress used with the first stimulus check. The upper cut-off limit where you would not receive a is lower, however, so a single taxpayer would still get the full $600 with an, but they would not receive anything above $87,000, down from the $99,000 cap for the first check. See our guide for . A $2,000 stimulus check that uses the same formula would make more people eligible for a partial check.
Third, the new bill changes the amount of money you’d get for: $600 up from $500 per child dependent 16 years or younger. to estimate your household’s payment this second time around.
Fewer people could qualify for a second stimulus check
A side effect of the $600 upper limit actually changes qualifications by shifting the upper income limit that a person can hit in order to qualify for a check. In other words,from a $600-maximum stimulus check than they would a $2,000-maximum payment.
Also, there may be changes to your life circumstances in the past nine months that could mean you and your family.
Remember, with the first round of checks, Congress set income limits based on yourand a long list of fringe requirements besides. Read . And here’s you got for the first payment.
A third stimulus check in 2021 is already in the cards
No matter what happens with this current bill, Congress is expected to take up another relief effort in 2021, after.
“This bill is just the first step, a down payment,”on Tuesday of the $900 billion stimulus bill, promising to push for more aid in 2021. Biden also committed to a , but whether it happens or for how much depends on the to continue to support the economy.
The second check could arrive next week
With the first check, the IRS was tasked to create an online registration and payment tracking tool, as well as a payment schedule for more than 160 million people. It took 19 days before thewas delivered.
Now that the tracking tool is up and running and the system is in place, the first stimulus deliveries could go a week after a bill is approved, starting with. On Monday, Treasury Secretary Steven Mnuchin confirmed that those with banking information on file with the IRS will get their checks quicker.
“The good news is [direct deposit] is a very, very fast way of getting money into the economy” Mnuchin said. “Let me emphasize: People are going to see this money at the beginning of next week.” This promise won’t hold true if Trump doesn’t sign the bill.
If stimulus checks don’t arrive by Jan. 15, you’d have to claim them a different way
Although Mnuchin promised delivery of stimulus checks within three weeks of sending them, assuming the $900 billion stimulus bill became law, that may not be realistic — or even possible — for tens of millions of people. After all, the IRS can only process so many physical checks at once. (The rate is actually 5 to 7 million a week, according to a GAO report from June.)
Those whoor could begin to get their payments in the following few weeks. However, the new stimulus bills sets a hard cutoff date of Jan. 15, 2021 for the IRS to send out checks. Anyone who doesn’t get a check by that cut-off would need to .
Here’s what you can do now to help.
Your next check will likely be delivered in order of payment group
got the first stimulus money at different times, . Once the bill containing a second check is signed into law, the IRS will use a similar approach. For example, people with the IRS — an electronic transfer of funds into their bank account — will get their payment first, followed by the rest. Some people may experience a bigger holdup. Here’s a more detailed .
You can still claim missing money from your first stimulus check
Guess what?from the first stimulus check payout. It may be that for , or that an (this really happened). Or it could be that you fell through the cracks with your personal situation, that you didn’t think you qualified but you actually do and just need to take an extra step, or that some other error kept you from getting the total amount you were entitled to. Since , you’ll now need to wait until tax season in 2021 to register for a payment from the IRS. Stay tuned for more information as we get closer.
You don’t have to file your taxes to qualify for a payment
While, you don’t need to have filed a tax return to qualify for a check. If you’re over age 65, for example, and receive , you could still qualify for a stimulus check under the CARES Act. You might need to take an extra step to request your payment to get your check. We’ve asked the IRS for details.
Your 2020 stimulus check is not considered taxable income
The IRS didn’t receive everything you were owed this year, you can claim it as a credit on your 2020 federal income tax return by filing in 2021.. That means a payment you get this year won’t reduce your refund in 2021 or increase the amount you owe when you file your 2020 tax return. You also won’t have to repay part of your stimulus check if you qualify for a lower amount in 2021. The IRS said if you
There are important rule exceptions to know
Now that a second stimulus check is approved, there will be lots of small details, rules and exceptions that may be confusing. While some situations will be easy to understand, others concerning you and your dependents might make it unclear if you’re eligible and how much money you might receive because there are many fringe cases.
Certain, such as if you recently moved.
Your second stimulus money can’t be taken by a landlord and to cover debts
In most cases, your check is yours with the second check, the money can’t be used to pay past-due federal or state debts, and the payments are protected from bank garnishment and from private creditors or debt collectors.and it isn’t taxable. But there were a few situations where the state or federal government or a debt collector can take to cover a debt, such as if you . However,
This IRS formula helped decide the size of your first payment
Predicting what your payment could end up being isn’t straightforward. The IRS used afor the first check and is doing something similar for the second checks. Try our to get an idea of the size of your payment.
The calculation starts with your household’s total, adds on the money allotted to qualifying child dependents and then deducts from the total based on your income bracket.