While lawmakers have failed to come to an agreement on a new coronavirus relief package, Americans continue to hold out on the possibility of a second stimulus check.
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin agreed to resume negotiations, a good sign that financial aid may soon reach the hands of those suffering from the effects of the pandemic, reported CNET.
On Monday, House Democrats released a new proposal for a $2.2 trillion coronavirus relief package that includes another round of $1,200 stimulus checks. While it could see a vote this week, there’s still no guarantee that the proposal will pass.
In the meantime, here are seven details to keep in mind regarding the status of a second stimulus check.
Bipartisan support for a second stimulus check
Both Republicans and Democrats have voiced support for including direct payments in coronavirus relief packages. Second stimulus checks have been included in previous proposals from both parties. President Trump has also said he wants a package that includes a second stimulus package.
Stimulus checks are not taxed
The Internal Revenue Service doesn’t see Economic Impact Payments as income, so you will not owe any money from any stimulus check you receive on your 2020 tax return. The aid also won’t reduce the amount of any refund you are owed.
Second stimulus checks could arrive very quickly
The first round of stimulus checks which were part of the CARES Act were dispersed in less than 3 weeks. In August, Mnuchin said he could get payments out as quickly as a week after a bill is signed, reported Bloomberg News.
Eligibility requirements could change
Since a new bill has yet to be signed, it’s unclear if eligibility requirements for a second stimulus check will be the same as the first round. Requirements will most likely consider one’s adjusted gross income, as well as whether or not you file income taxes. The eligibility requirements for dependent children could also affect whether qualifying recipients get more or less money this time around.
Who gets a check first?
In the process of dispersing the first stimulus checks, those that received it via direct deposit got their payment the fastest. Getting the Economic Impact Payments via a physical check in the mail or a prepaid EIP card took longer. Should a second round of checks be approved, the IRS is expected to reopen their online portal to sign up for direct deposit.
How much will you get?
It all depends if lawmakers keep the same eligibility requirements. For the first stimulus check, individuals had to make less than $75,000 per year ($150,000 for a married couple filing jointly) to receive the full $1,200 payment.
Earlier this year, the IRS had delays in dispersing stimulus checks due to glitches in their overloaded systems. By September, up to 9 million had still failed to register to receive their first check. Others with dependent children failed to get their full payments. While a different process was set up for those individuals who receive Social Security Disability Insurance. Although many of the issues may have since been fixed, qualifying individuals shouldn’t be surprised if delays persist if a second check is approved.