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Home / Tips and Tricks / The second stimulus check is only guaranteed. But who qualifies for round 2?

The second stimulus check is only guaranteed. But who qualifies for round 2?

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The proposals for who may or may not qualify for a second incentive check are dizzying.

Angela Lang / CNET

Senate Republicans are expected to unveil their proposal for another economic stimulus package in the coming days. In addition to a commitment that the next bill will include a second stimulus check by August, we are far from getting final answers how much money a second stimulus check can bring and who will be able to get 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 benefit is still unknown. It is uncertain whether a new incentive check would follow the guidelines for eligibility set out in the CARES Act. While the Senate has signaled a desire to tighten the income limit, which results in fewer people receiving a check, the House of Representatives wants more people to qualify.

What we do know is that discussions are taking place that take into account payment requirements based on 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.

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Will Congress reduce the requirements for another payment?

Senate Majority Leader Mitch McConnell has said that if the Senate, which his Republican Party controls, passes another relief proposal that includes more stimulus controls, the focus will be narrow. Based on speculation is here that may not be eligible for a second stimulus 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.

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It will soon be clear who can qualify for another stimulus check.

Sarah Tew / CNET

Here is who did not receive the first incentive payment

Let’s examine who rejected 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 profit capital of $ 40,000 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.”

cash out of money change dollar wallet empty

Is an income limit of $ 40,000 per year part of the next stimulus package? It’s too early to tell.

Sarah Tew / CNET

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 what the deadline for the congress is and when a check could be sent.

For more, here’s what we know about major proposals for a second stimulus package. We also have information about unemployment insurance, what you can do if you have lost your job and what to know about drafts.

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