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New incentive check: All essential facts to know about payment size, qualifications and more



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Here’s what happens to a second stimulus check.

Angela Lang / CNET

Congress continues negotiate all the details in another coronavirus help package — and that the second incentive payment it would probably come with it. Progress has been stable but slow, and we still do not know exactly what a final bill would look like. It means everything from whom would be entitled to a second incentive check to when it could come to all the other ins and outs are still up in the air, like Presidential election 2020 fast approaching.

We may not know exactly if or how another stimulus bill will be collected, but we can provide comprehensive information on stimulus checks, including whether you may be among the first or last to receive a second check if you are approved, and how the IRS calculates how much stimulus money you get.

Here is the most important information we know right now about stimulus controls, including how your taxes affect your payment and the role your children and relatives playalso. We update this story regularly.

Stimulus negotiations are becoming more urgent every day

Pressure is mounting for Congress to adopt another stimulus bill that provides more immediate support to eligible Americans: The The election on November 3 is just over two weeks left, new unemployment rates are rising, there are more than 8 million known coronavirus cases in the United States and millions of people live in poverty coronavirus pandemic. Despite the fact that both political parties support sending a second stimulus check, negotiations have been troublesome.

On October 9, the White House prepared one $ 1.8 trillion incentive offer, which includes another payment of up to $ 1200 for individuals, along with a change in how much people can get for dependent (more on that below). Since then, House Speaker Nancy Pelosi and Finance Minister Steven Mnuchin have spoken daily, saying they are making progress on language, funding and other details in the bill. Meanwhile, President Donald Trump has called on Congress to “go higher” than the $ 1.8 trillion package. But Senate Majority Leader Mitch McConnell has fired back.

“He’s talking about a much larger amount than I can sell to my members,” McConnell told reporters in Kentucky last week. When the Senate returns on Monday, it will vote on a new stand-alone bill to repay the paycheck program – which does not include money for stimulus checks – which could potentially create a split between the Senate Republicans and the White House. (Here is everything you need to know about the Senate’s upcoming voteand what it can mean for you.)

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High unemployment and a tight economy underline the need for more support.

Angela Lang / CNET

2. Stimulus payment mathematics works like this

You may be interested in knowing that The IRS has a formula for calculating how much stimulus money you can get, and that’s what determines if you get the full amount, a down payment or much more than $ 1200 if you have children.

It also explains how you can still get some incentive money, even if your family’s annual income exceeds the limit indicated by CARES Act in March. The calculations start with the total amount of your household adjusted gross income, add on money allocated to qualified personsand then start deducting the amount, based on your income class (as defined in the CARES Act).

You can calculate how much you can get in a stimulus check now, including for a second check.

Most people saved their incentive money or paid their debts

A new study this week on how people in the US used their first stimulus control sheds light economic reality of the effects of coronavirus. The survey by the Federal Reserve Bank of New York examined 1,300 households between June and August. The study showed that of the 89% who reported receiving stimulus control ($ 2400 median total):

  • 29% spent the stimulus money (on essentials, non-essentials and donations).
  • 36.4% saved their stimulus money.
  • 34.5% used it to pay off debts.

When asked what they would do with a second check for $ 1,500, 45% of respondents said they would save money, 30.9% said they would apply it to debt and 24.2% said they would spend it. somehow.






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4. There can be 5 different payment waves

Qualified Americans get their checks at different times, often because of how they get paid. For example, people who have direct deposit – an electronic transfer of funds to their bank account – set up with the IRS can receive their checks weeks before those who receive a paper check, or prepaid EIP card in the mail. We identified five priority groups based on the first stimulus controls.

5. New changes to the authorization means that you can get more money

It is likely that a second stimulus control would largely follow the same rules and guidelines as the first. But qualifications for who can get money may change in ways that can benefit your family. A proposed bill redefines which is considered a qualified addict, and would give your family $ 500 for each dependency you apply for your tax, regardless of age.

The current $ 1.8 trillion proposal from the White House offers a $ 1000 payment per children dependent. We have explained how some families can benefit from one bill versus the other in terms of a total payment. (Here is how young people can qualify for his own $ 1200 check.)

A new survey by Liberty Street Economics broke down how people reported using their first check: 18% of the funds went to significant expenses, 8% went to non-significant expenses, 36% went to savings, 35% was used to pay down debts, and 3% was donated. When asked to share how participants expected to spend a potential second stimulus check, they said that on average 45% would go to savings, 14% would go to significant expenses and 31% would pay down debt.

6. You can get money from a second payment faster

With the first check, the IRS learned how to mobilize and deliver stimulus money and calculated many of the plant pains in the plan. If a second check is approved, it is likely that the agency can speed up the process of sending out the first set of payments. The tracking tool is already running, the system is in place and it is likely that most people who qualified for a first check will also get another.

The timeline is constantly changing, but we have done it mapped potential dates a check can be sent if approved before – or after – the election.

7. The IRS may still owe you money

If you are still waiting for your first incentive payment, there are several ways to hunt it. As many as 9 million people was considered eligible for an initial check but did not receive it, as it requires registration with the IRS – an extra step that most people did not have to take. The deadline is November 21 and we show you how to do it. Some people with relatives received only a partial payment and still owe money. The deadline to get it in 2020 passed on September 30, but we explain how you can claim it with next year’s tax.

8. There are lots of confusing exceptions and rules

If and when a second stimulus check is approved, there will be lots of small details, rules and exceptions that can be confusing. While some situations are easy to understand, others around you and your loved ones may make it unclear if you are eligible and for how much money. The edge falls are many.

For example:

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Less than a quarter of eligible recipients received their payment as a check in the mail.

Sarah Tew / CNET

9. You do not have to pay tax on your incentive money

IRS does not consider incentive money to be income. This means that a payment you receive this year will not reduce your repayment in 2021 or increase the amount you owe when you submit your tax return in 2020. You will also not have to repay part of your incentive check if you qualify for a lower amount in 2021. The IRS said that if you did not get everything you owed this year, you can claim it as a credit on your federal 2020 income tax return by filing in 2021. Here is everything to know about stimulus checks and taxes.

There is much more to know about other government payments during the pandemic, including a possible interest rate check from the IRS and there $ 300 federal unemployment benefits is now.


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