Over the weekend, President Trump signed four actions meant to provide speedy relief to Americans suffering from the economic consequences of COVID-19.
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Included in this new package are as much as $400 in enhanced unemployment benefits for out-of-work Americans, a payroll tax holiday for those earning less than $100,000 per year, additional relief for student borrowers, and assistance for people struggling to make rent or their mortgage payments.
The additional $400 in unemployment benefits may prove especially helpful to those who are still unemployed, as the $600 in weekly additional unemployment benefits included in the CARES Act expired more than 10 days ago on July 31st.
However, many Americans are still left wondering when they’ll receive their next $1,200 stimulus payment, or whether they will receive another amount instead. Many are also left guessing which version of stimulus payments will ultimately make the cut, whether that includes the $1,200 payment per individual and $500 per dependent suggested in the HEALS Act, or whether each dependent (up to three) will be eligible for a $1,200 payment as was suggested in the HEROES Act.
When to Expect Your Next $1,200 Stimulus Payment
Before you can start the countdown to receiving your next stimulus payment, Congress will need to reach a broad agreement on a full stimulus package. Negotiations were still at a standstill as of Monday, August 10th, yet both Republicans and Democrats appear to be working toward a good halfway point between their respective proposals.
One major point of contention among Republicans and Democrats has been a potential extension of the $600 in additional unemployment benefits that expired last month. Democrats would like to see this benefit last through the end of 2020, but Republicans have argued that added unemployment benefits disincentivize people to get back to work.
While some uncertainty lingers, it’s still possible you could receive a second $1,200 stimulus check (and checks for your dependents) by the end of August. This is predicated on the idea that Congress reaches an agreement this week, which President Trump can then sign into law.
Keep in mind that the CARES Act passed on March 27, 2020, and the first wave of stimulus payments were deposited into American’s bank accounts by April 13th. Some payments took longer, however, since many requested paper checks and some people owed a stimulus check do not file taxes each year.
It’s reasonable to believe payments could come quicker this time around since the framework that didn’t exist before the CARES Act is already built. For example, the Internal Revenue Service (IRS) notes that many people who opted for a paper check from the government got a debit card instead last time, which they had to make plans for. We can presume another round of stimulus payments could use the same system that pumped out those debit cards and got them in the mail in a short amount of time.
Do I Qualify for a Second Stimulus Check?
While nobody knows for sure if any changes will be made in terms of eligibility for stimulus payments, both the HEALS Act and the HEROES Act relied on the same income thresholds included in the CARES Act. Presumably, the same income caps will apply for a second check, although we’ll have to wait and see.
If thresholds remain the same, individuals could receive a full stimulus payment with an income of $75,000 or less, while that amount is doubled to $150,000 for couples filing joint returns. Meanwhile, heads of household filers can receive a full stimulus payment with an income up to $112,500.
Note that, last time, stimulus payments were phased out based on income above these amounts with individuals, couples filing jointly and heads of household disqualifying for stimulus payments once they earn an adjusted gross income (AGI) over $99,000, $198,000, and $136,500 respectively.
The Bottom Line
If you received your first stimulus check promptly, then you don’t have to do anything to receive another payment using the same method. For the first round of stimulus, you didn’t need to take any action if you had already filed your tax returns for 2019. If you hadn’t filed your taxes for 2019 yet but you did file tax returns for 2018, however, the IRS used your 2018 income to determine your stimulus payment amount or eligibility.
If you have little or no income or you didn’t file a tax return and you haven’t received the first stimulus payment yet, the IRS says you should use their non-filer tool as soon as possible to register for your stimulus payment.
If you’re counting down the minutes until your next stimulus payment arrives, you’re certainly not alone. But, like the rest of America, all you can do is make sure you’re eligible and wait it out.
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