We have to wait until Monday to hear from the Senate Republicans about their proposal for another economic stimulus package. We know the Senate plans to include, but we have no final answer for and who is entitled to receive it.
On Thursday, Treasury Secretary Steven Mnuchin told CNBC: “The president’s preference is to make sure we send out direct payments quickly so that people get more money in August. There’s no doubt that this worked earlier.”
But as people will meet the requirements will be part of the debate starting next week. It is uncertain whether a new incentive check would follow the eligibility guidelines set out in the CARES Act, but it is indeed an option. While the Senate has signaled a desire to tighten the income limit – which results in fewer people getting a check – the democratically led House of Representatives wants more people to qualify.
What we do know is that the House and Senate, working with the White House, will take into account age, citizenship, annual taxable income, marital status, and the number of relatives you claim. Here’s what we know so far. This story is frequently updated to reflect ever-changing information.
Could more people qualify for a 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 Congress reduce the requirements for another 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, Mnuchin said this week 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.
CARES 2 same as CARES Act? Here’s who did not receive the original incentive 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 limit: Is a $ 40,000 profit capital 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 complete the stimulus payment requirements?
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 .