President Trump has signed a massive COVID- relief bill authorizing a second round of government stimulus checks. Read on for more information on what the package incudes, if you qualify for it, and when you should be receiving it.
What are the Government Stimulus Checks?
The 900-billion-dollar coronavirus aid package will include a second round of government stimulus checks starting at $600, renewed funding for Paycheck Protection Program small business loans, $300-per-week unemployment benefits, and money for COVID-19 vaccines and testing.
What you Should Know Before Receiving the Stimulus Check
1. How much are the Payments?
Each household qualifies for $600 per adult and $600 a child, compared to $1,200 per adult and $500 per child that was given in the first round of stimulus checks. The Senate will start the process for a vote that increases checks to $2,000. If the payments aren't increased to $2,000, Americans will still receive the second stimulus checks in the amount of $600.
2. When Should your Second Stimulus Check Arrive?
Taxpayers whose bank-account information is filed with the IRS should receive their direct deposits by January 4th. For those who haven’t provided their bank information to the IRS in recent years will either receive payments by mail in the form of a check or debit card. The IRS can’t send the second government stimulus checks after January 15, 2021.
3. What are Some of the Income Limits?
The numbers for stimulus payments are based off 2019 income, the stimulus checks start to decrease or stop as individual’s income exceeds $75,000, when head-of-household income exceeds $112,500, or when income for a married couple filing jointly exceeds $150,000. Stimulus checks also start to cease for individuals whose income is $87,000 or more and for married couples who don’t have children and make $174,000 will receive zero.
The IRS has already sent out 150 million stimulus checks, which totals out to about $290 billion. The second round of government stimulus checks have been up in the air for the last few weeks, due to agreements that a $600 check was not enough to sustain an American household. Over the next few weeks the Senate will determine if they will increase the $600 stimulus check to $2,000.
During these uncertain times, trying to figure out if you qualify for the second round of stimulus checks can be stressful and confusing. The financial experts at Satty, Levine & Ciacco, CPAs, P.C can assist you with any questions you may have. Visit our website today to view our services!