The possibility of a second stimulus check is being considered. The first stimulus check was a one-time payment of up to $1,200 per individual and $2,400 per couple that was sent to eligible Americans as part of the CARES Act in March 2020. The first stimulus check was intended to help Americans cope with the economic impact of the COVID-19 pandemic. The second stimulus check, if approved, would likely be similar to the first check, but the exact amount and eligibility criteria have not yet been determined.
Economic Impact Payments Updates
The latest news and updates regarding the second round of Economic Impact Payments (EIP2):
- The Consolidated Appropriations Act, 2021 was signed into law on December 27, 2020, authorizing a second round of EIPs.
- The payments are worth up to $600 per eligible individual and $1,200 per eligible couple.
- Payments are being distributed via direct deposit, paper check, or EIP Card.
- The IRS began issuing payments on January 4, 2021.
EIP2 Eligibility
To be eligible for an EIP2, you must meet the following criteria:
- Have a Social Security number
- Not be claimed as a dependent on someone else’s tax return
- Meet the income limits (see table below)
| Filing Status | AGI Limit |
|---|---|
| Single | $75,000 |
| Married Filing Jointly | $150,000 |
| Married Filing Separately | $75,000 |
| Head of Household | $112,500 |
Please note that the income limits are based on your Adjusted Gross Income (AGI) from your 2019 tax return or your 2020 tax return if you have already filed it.
EIP2 Payment Amounts
The amount of your EIP2 will be based on your filing status and AGI:
- Single: Up to $600
- Married Filing Jointly: Up to $1,200
- Married Filing Separately: Up to $600
- Head of Household: Up to $1,200
If you have eligible dependents, you will receive an additional $500 per dependent.
EIP2 Delivery
The IRS is sending EIPs via direct deposit, paper check, or EIP Card.
- Direct deposit: If you have provided the IRS with your bank account information, your payment will be deposited directly into your account.
- Paper check: If you do not have direct deposit information on file with the IRS, you will receive a paper check in the mail.
- EIP Card: The EIP Card is a prepaid debit card that can be used to make purchases or withdraw cash from your account.
The IRS will send you a notice in the mail informing you of the payment method and the date it will be delivered.
EIP2 FAQs
Here are some frequently asked questions about EIP2:
- When will I receive my EIP2?
- How can I check the status of my EIP2?
- What should I do if I don’t receive my EIP2?
- Can I claim the EIP2 as a tax credit on my 2020 tax return?
For more information on EIP2, please visit the IRS website.
Legislative Progress on Stimulus Package
The legislative process for a second stimulus package has been ongoing since May 2020. Here’s an overview of the key developments:
Phase 1: The CARES Act
- Passed on March 27, 2020, providing $2 trillion in relief measures
- Included one-time stimulus payments of up to $1,200 per adult and $500 per child
Phase 2: The HEROES Act
- Passed by the House of Representatives on May 15, 2020
- Proposed a second round of stimulus payments of $1,200 per person
- The Senate did not vote on the HEROES Act
Phase 3: Negotiations on a Compromise Package
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Negotiations between the Trump administration and Democratic leaders began in July 2020
A compromise package was announced on July 31, 2020, but negotiations stalled
Negotiations resumed in October 2020, but no agreement was reached before the 2020 election
Phase 4: Stimulus Package as Part of Government Funding Bill
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In December 2020, a $900 billion stimulus package was incorporated into a government funding bill
The package included one-time stimulus payments of $600 per adult and $600 per child
Phase 5: Biden’s Proposed Relief Package
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President Biden proposed a $1.9 trillion relief package in January 2021
The package includes a third round of stimulus payments of $1,400 per person
Negotiations on the package are ongoing, with a vote expected in the House of Representatives in late February or early March 2021
Eligibility and Qualification Criteria
- For Individuals:
- Must have a Social Security number.
- Must have an Adjusted Gross Income (AGI) below $75,000.
- Cannot be claimed as a dependent on someone else’s tax return.
- For Married Couples Filing Jointly:
- Must have a Social Security number.
- Must have an AGI below $150,000.
- Cannot be claimed as dependents on someone else’s tax return.
- For Dependents:
- Must have a Social Security number.
- Must meet the income requirements listed above for individuals or married couples filing jointly.
- Cannot be claimed as a dependent by two different taxpayers.
Note: Individuals who receive Supplemental Security Income (SSI) or Social Security Disability Insurance (SSDI) will automatically receive a stimulus check. They do not need to file a tax return.
Qualification Criteria:
In addition to meeting the eligibility requirements, individuals must also:
- Be a U.S. citizen, U.S. national, or a resident alien.
- Have lived in the United States for at least 30 days during the past year.
- Not have been incarcerated for more than 90 days during the past year.
| Income | Stimulus Amount |
|---|---|
| $0 – $75,000 | $1,200 |
| $75,000 – $99,000 | $1,200 (phased out) |
| $99,000 + | $0 |
Estimated Timeline for Distribution
The timeline for distribution of a second stimulus check, if approved, is still uncertain. However, based on the process of the first round of payments, we can make some estimates:
- Approval by Congress: Once a stimulus package is approved by Congress, it will move to the President for signing into law.
- Internal Revenue Service (IRS) Processing: After the President signs the bill, the IRS will need to update its systems to handle the new payments.
- Distribution: Once the IRS has updated its systems, it will begin processing and distributing the payments.
The distribution process will likely follow a similar timeline to the first round of stimulus checks:
| Payment Method | Estimated Timeline |
|---|---|
| Direct Deposit | Within 2-3 weeks after the payment is authorized |
| Paper Check | Within 4-6 weeks after the payment is authorized |
Well folks, that’s all the tea we have on the second stimulus check for now. We’ll keep our ears to the ground and update you with any new info as soon as we get it. In the meantime, hang in there and stay safe. Thanks for reading, and we’ll talk again soon!