Content ofwill be unveiled on Monday, when Republicans plan to introduce their full proposal on the Senate floor. We know that will be part of the plan, but we will not find out it may contain or – decisively – who is entitled to payment of economic effect until it happens.
In a possible scenario, the same eligibility guidelines set out in the CARES Act, which awarded up to $ 1,200 for individuals and $ 6,000 for families, may apply. In another, Senate Republicans could tighten the income limit, which would lead to fewer people getting anything at all. Conversely, the democratically led House of Representatives wants to broaden the requirements so that more people become eligible.
To determine eligibility requirements, White House counselors and congressmen will take into account factors such as citizenship, age, annual taxable income, marital status, and the number of relatives required. We also have an idea.
This story is updated frequently to reflect new information.
Would more people be entitled to the second stimulus check?
The largest eligible parameters so far come from the Heroes’ Act (PDF), which was proposed by the House of Representatives in mid-May. It has been strongly opposed by Senate Republicans and President Donald Trump, who called it the DOA. We can look at this bill to help create the conversation about the upper limits of who can qualify for a broad proposal:
- Individuals who earned less than $ 99,000 according to the adjusted gross income from their taxes for 2018 or 2019 (depending on what was last filed).
- Students, family members over 17, disabled relatives and taxpayers’ parents.
- Families of up to five people.
- SSDI recipients.
- People who are not U.S. citizens and file tax returns, pay taxes, and otherwise follow federal tax laws using an individual taxpayer’s identification number instead of a social security number.
Will the Senate limit the requirements for the next payment?
While Senate Majority Leader Mitch McConnell has suggested that if the Republican-controlled Senate passes another relief proposal with more stimulus control, the focus will be narrow. However, US Treasury Secretary Steven Mnuchin said this week that the Senate is considering an identical payment structure as with the CARES law.
“Our proposal is exactly the same provision as last time,” Mnuchin told reporters on Thursday, according to Bloomberg.
Based on the conflicting signals, here’s who might be not be entitled to a second incentive check.
No one qualifies: An incentive package could be signed into law that provides tax breaks and other incentives for companies. It is possible that some people may get a travel or dinner credit, but not a check.
People who make “too much” money: If another round of incentive payments goes, but the distributions are smaller for IRS payments, it is likely that income limits may be stricter. You may need a lower maximum annual income (AGI on the tax form) to qualify.
In other words, people who earn more than a certain amount (that’s lower than the current $ 99,000 rebate for individuals) could potentially be left out of a second round. An example is an income cap of $ 40,000 per year, first raised by McConnell (more below).
Exemption from transfer from the current CARES law: Young people between 18 and 24, people who are not US citizens but pay taxes and people who are imprisoned.
Is CARES 2 the same as the CARES Act? Here’s who did not get the first payment
Let’s examine who passed the first round:
- Individual taxpayers with an adjusted gross income over $ 99,000.
- Managers for households with an AGI over $ 136,500.
- Married couple with an AGI over $ 198,000.
- Children over 16 and students under 24.
- Non-resident aliens, as defined by the US Government.
Income: Is a $ 40,000 profit limit still being discussed?
It has been suggested that the next stimulus check should only go to people earning $ 40,000 a year or less. The assumed income limit – which is not final – came from remarks by McConnell on July 6, who answered a reporter’s question about the second stimulus check by saying: “I think the people who have been hit the hardest are people who make about $ 40,000 per year or less. Many of them work in the hospitality industry. So that may well be part of it. ”
Speaker Nancy Pelosi questioned McConnell’s proposed salary capability. “I do not know where the $ 40,000 came from,” she told a news conference on July 9. “I think families earning over $ 40,000 probably need help, depending on their situation.”
That figure is not scaled in all US markets. In San Francisco, for example, the US Department of Housing and Urban Development defines “very low income limits” at $ 60,900 for a single employee and $ 87,000 for a family of four, based on 50% of the metro area’s median income by 2020. That would be well above any $ 40,000 cutoff.
That the $ 40,000 quote quoted by McConnell may have come from an open letter published June 16 from over 150 economists, led by Ben Bernanke, the former chairman of the Federal Reserve, who stated that “among people who worked in February Nearly 40% (PDF) of those in households earning less than $ 40,000 a year had lost their jobs in March. ”
When will Congress decide on demands for incentive payments?
After the Senate has presented its proposal, with the commitment of the White House, negotiations begin with the House. Once an agreement has been reached, the stimulus proposal will not enter into force until the President has signed it into law. We will not know anything for sure until a stimulus bill comes into clearer focus, but we have a good idea.
For more, here’s what we know about. We also have information about , and .