You may know that Washington lawmakers are stillthe details of that would include a , but do you also know , with a second stimulus payment and exactly ?
We’ve sifted through the stimulus bill proposals, the IRS websites and watched a whole lot of C-Span seeking answers to pressing questions about theand a potential follow-up. We don’t have every answer for you, but we can help demystify and . Keep reading for the most important takeaways. This story updates often.
1. The status of stimulus negotiations: Urgent
With the new unemployment figures on the rise, coronavirus cases nearing 8 million in the US, according to Johns Hopkins University and millions more people in poverty, the pressure is on to bring more aid immediately. However, nothing about the next stimulus bill has been fast or easy.,
President Donald Trump continues to urge Congress to pass a bill. Meanwhile, House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin speak daily and say they’re making progress on language and funding for the White House’s Oct. 9 , which includes another , as well as a change in the status of (more below).
At the same time, Senate Republicans are prepping to vote on a new standalone bill to refund the Paycheck Protection Program on Oct. 19, which would not include a stimulus check. Senate Majority Leader Mitch McConnell, however, has committed to pass a larger package, even if it’s after the election.
Mnuchin said Wednesday he isn’t confident that a larger stimulus bill will pass before the Nov. 3 election, and others have expressed doubt the Senate would pass a larger stimulus bill, preventing it from becoming law. Here’s more .
2. IRS’ stimulus payment math is not simple
Did you know that in some cases you can still get stimulus money if you have kids, even if your family’s yearly earnings?
We go into more depth here about, but the bottom line is that the IRS lumps together your household’s total and adds on the and then starts deducting from the total, based on your income bracket as defined by the CARES Act.
You can(including for a second check), but the bottom line is that even if your family income exceeds the limit — let’s say you’re married, filing jointly and have a $200,000 , with one qualifying child you can still see a $400 check. Without children, you wouldn’t be eligible for a check at all.
3. Certain eligibility changes could bring you more money
While we expect a second stimulus check to largely follow the same guidelines as the first,are subject to change. That might even benefit your family. One approach redefines and would give your family $500 for each dependent you identify on your taxes, regardless of age.
Theoffers a $1,000 payment per child dependent. We’ve broken down how when it comes to your total payment. (Here’s for their own $1,200 check.)
4. A second stimulus check isn’t guaranteed, but likely
Democrats want it. Republicans want it. And Trump also wants to send another round of checks out to Americans. In fact,since the began going out in April has included a second direct payment.
Though a new payment is wrapped up in a bill of one form or another that has to pass both chambers of Congress and get the president’s signature, this is one element on which all sides seem to agree.
However, a standalone bill like the one now being floated in the Senate will not include another check (see the negotiations section above). This proposal is not expected to pass the House, but the passage of any standalone aid wouldn’t necessarily mean a second stimulus check isn’t coming — it would, though.
5. The IRS could get you your stimulus money faster
The IRS has already gone through the growing pains of figuring out how to mobilize and deliver one round of stimulus money. In theory, if a second check is approved, the agency could speed up the process of sending the first batch of payments. The tracking tool is already up and running, the system is in place and it’s likely that the majority of people who qualified for a first check will also receive another.
The timeline is constantly shifting, but weif approved before — and after — the election.
6. Different people would get paid at different times
Not everyone gets their checks at the same time and some of that comes down to how you’re getting paid. For example,— an electronic transfer of funds into your bank account — could happen weeks before people start to receive a paper check or . We identified .
7. The IRS still owes millions of people a first check
If you’re, there are several ways to hunt it down. As many as were estimated to be eligible for a first check, but that requires registering with the IRS, an extra step most people didn’t have to take. The deadline is Nov. 21 and we show you how to do it. Some people with dependents . The deadline to get that in 2020 passed Sept. 30, but we explain how you can claim it with next year’s taxes.
8. The rules and exceptions are downright dizzying
When and if a second stimulus check does get approved, the details will require some unraveling. While some situations are straightforward, other complications about you and your dependents may make it unclear if you’re eligible and for how much. Fringe cases abound.
9. You won’t have pay taxes on your stimulus money
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. Here’s ., and 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 check if you qualify for a lower amount in 2021. The IRS said if you
There’s much more to know about other government payments during the pandemic, includingand where the is now.