Tuesday, September 27, 2022

When Are They Sending Out The Second Stimulus Check

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Who Is Eligible And How Much Will You Get

Is a second stimulus check on the way?

According to the IRS: Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone elses income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced.

How Many Stimulus Checks Have Been Issued

  • 8:44 ET, Dec 16 2021

HOUSEHOLDS have been given stimulus checks worth thousands of dollars during the coronavirus crisis.

We explain all you need to know about the number of stimulus checks issued, and whether there are plans to send out more in the future.

Are Stimulus Checks Taxable

  • 12:29 ET, Jan 24 2022

WITH tax season beginning, many Americans are wondering whether their stimulus checks are subject to taxation.

In 2021, millions of Americans received a stimulus check worth up to $1,400.

This was the third round of stimulus checks issued amidst the ongoing Covid pandemic.

That payment was in addition to the child tax credit payments that began last July, offering up to $300 per month per child to qualified parents.

Some individual states also issued aid to residents.

The second round of California’sGolden State Stimulus program, for example, provided residents with 8.1million payments worth more than $5.8billion, a spokesperson for the California Franchise Tax Board told The Sun.

Below, we explain whether these stimulus checks are subject to taxation upon filing a return in 2022.

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What If I Owe Child Support Payments Back Taxes Money To Creditors Or Debt Collectors Or Federal Or State Debt

Both the first and second stimulus check cannot be reduced to pay any federal or state debts. Unlike the first stimulus check, your second stimulus check cannot be reduced if you owe past-due child support payments and is protected from garnishment by creditors and debt collectors.

If you use direct deposit and owe your bank overdraft fees, the bank may deduct these from your payment.

If you are claiming the payments as part of your 2020 tax refund , the payments are no longer protected from past-due child support payments, creditor and debt collectors, and other federal or state debt that you owe . In other words, if you receive your first and second stimulus checks as part of your tax refund instead of direct checks, it may be reduced.

Irs Will Be Able To Make Most Payments Faster Than First Round

Stimulus Check Almost A Sure Thing For Those Making Under ...

Most households are expected to receive the payment more quickly than they received the first stimulus check, because the IRS now has most eligible people’s bank account information or home address on file.

Those with their direct deposit information on file with the IRS are first in line to receive a payment. If the agency does not have your direct deposit information, it will mail you a paper check or send a pre-paid debit card to the address it has on file for you. This will take longer, though payments are expected to begin in the next few weeks.

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Amount Of Third Stimulus Checks

Question: How much money will I get?

Answer: Everyone wants to know how much money they will get. You probably heard that your third stimulus check will be for $1,400 but it’s not that simple. That’s just the base amount. Your check could actually be much higher or lower.

To calculate the amount of your check, Uncle Sam will start with that $1,400 figure. If you’re married and file a joint tax return, then both you and your spouse will get $1,400 . If you have dependents, you get an additional $1,400 for of them. So, for example, a married couple with two children can get up to $5,600.

Now the bad news. Stimulus payment amounts will be phased-out for people at certain income levels. Your check will be gradually reduced to zero if you’re single with an adjusted gross income above $75,000. If you’re married and file a joint tax return, the amount of your stimulus check will drop if your AGI exceeds $150,000. If you claim the head-of-household filing status on your tax return, your payment will be reduced if your AGI tops $112,500. You won’t get any payment at all if your AGI is above $80,000 , $120,000 , or $160,000 .

Also note that the IRS, which is issuing the payments, will look at either your 2019 or 2020 tax return for your filing status, AGI, and information about your dependents. Because of this, the amount of your third stimulus check could depending on when you file your 2020 tax return.

Are More People Eligible Now For A Payment Than Before

Under the earlier CARES Act, joint returns of couples where only one member of the couple had a Social Security number were generally ineligible for a payment unless they were a member of the military. But this months new law changes and expands that provision, and more people are now eligible. In this situation, these families will now be eligible to receive payments for the taxpayers and qualifying children of the family who have work-eligible SSNs. People in this group who dont receive an Economic Impact Payment can claim this when they file their 2020 taxes under the Recovery Rebate Credit.

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How Quickly Can The House And Senate Vote On The Stimulus Bill

In theory, both the House and Senate could vote to approve a stimulus package as soon as an agreement is reached and the final text of the bill is approved. At this point, both the House and Senate should know that they have the votes to pass the legislation. Otherwise, negotiations would continue. But of course, there are no guarantees.

With the CARES Act, it took two days. A deal was announced on March 25th, and the Senate voted 96-0 to approve the bill later that evening. It wasn’t smooth sailing, however. Some Senators thought the legislation didn’t do enough. Some thought it did too much. Nevertheless, it went through the Senate in a matter of hours. It moved to the House and was passed two days later on March 27th.

We can’t know if the second stimulus package will move as quickly. There are a number of Senate Republicans who have expressed strong concern over the amount of spending that’s being proposed. That being said, once agreement is reached, we’ll assume it gets through both chambers in at most three days.

Another Stimulus Check More Direct Payments Are Going Out In These States

Another Round of Stimulus Checks to be Sent Out

Although another round of federal stimulus checks appears unlikely to be approved, some states are sending out additional direct payments to many residents as the economic fallout from the COVID-19 pandemic persists.

Congress previously approved three rounds of stimulus checks to be sent out to the majority of Americans. The first, for $1,200, was approved back in March 2020 as the nation locked down in an effort to curb the spread of COVID-19. Congress approved another round of $600 direct payments in December 2020 and President Joe Biden pushed through an additional $1,400 stimulus check as part of his $1.9 trillion American Rescue Plan approved by House and SenateDemocrats this past spring.

While millions of Americans have signed online petitions urging the federal government to provide more aidincluding reoccurring monthly payments of $2,000Congress is not currently considering any such legislation. However, California and some other states have approved stimulus payments for many of their residents.

California

More than 1 million stimulus checks and direct payments of up to $1,100 are set to go out in California on Friday and early next week as part of the Golden State Stimulus approved earlier this year. California residents who earned up to $75,000 in 2020 are eligible to receive $600 payments as well as an additional $500 for a qualifying dependent.

Georgia

Connecticut

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Automatic Second Stimulus Payments

Second stimulus check payments are automatic for eligible taxpayers who filed a 2019 tax return. In addition, people who receive Social Security retirement, survivor or disability benefits , Railroad Retirement benefits as well as Supplemental Security Income and Veterans Affairs beneficiaries who didn’t file a tax return will also receive a second stimulus check automatically. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.

Payments are also automatic for anyone who successfully registered for a first-round stimulus check online at IRS.gov using the agency’s Non-Filers tool by November 21, 2020, or who submitted a simplified tax return that has been processed by the IRS.

Is There A Deadline To Get My Second Stimulus Check

All second stimulus checks were issued by January 15, 2021. If you didnt get a second stimulus check by then , you can claim your second stimulus check as the Recovery Rebate Tax Credit on your 2020 tax return or use GetCTC.org if you dont have a filing requirement.

If youre required to file taxes:

The deadline to file your 2020 tax return was May 17, 2021. The tax filing extension deadline is October 15, 2021. Many tax filing software programs close after this date. If you can find an online tax filing program that is still accepting 2020 tax returns, you can file a tax return to get your stimulus checks even though the deadline has passed.

If you dont owe taxes, there is no penalty for filing late. If you owe taxes, you may be subject to penalties and fines for not filing or not paying taxes. The government may reduce your tax refund to pay for any taxes you owe and other federal and state debts.

To learn more about your options if you think you owe taxes, read Filing Past Due Tax Returns and What to Do if I Owe Taxes but Cant Pay Them.

If youre not required to file taxes:

The deadline to use GetCTC.org is November 15, 2021. You can get the Recovery Rebate Credit using GetCTC.org, a simplified tax filing portal for non-filers. GetCTC is an IRS-approved service created by Code for America in partnership with the White House and U.S. Department of Treasury. You can use the portal even if youre not signing up for the Child Tax Credit advance payments.

Also Check: Where’s My Stimulus Refund Irs.gov

Why Is The Second Stimulus Check Only $600

Good question. The original $1,200 number was thought to be linked to federal minimum wage. It roughly equals $7.25 an hour times 160 hours of work in a month. The $600 sum is half of that, of course, but also matches the weekly enhanced unemployment checks approved by the CARES Act earlier this year.

The two parties have spent months fighting over the overall cost of the package and how targeted the relief should be. Just days before Democrats and Republicans agreed on the final package, as negotiations were winding down, Trump was privately pushing for stimulus checks of up to $2,000.

Earlier that week, the Post reported that lawmakers decreased the bill’s unemployment benefits in order to provide stimulus check money.

The tradeoff immediately sparked backlash from Democrats on social media. Rep. Alexandria Ocasio-Cortez, D-N.Y., criticized the situation as “barbaric,” while Sen. Ron Wyden, D-Ore., tweeted that “the notion that Congress cant give Americans direct checks AND unemployment benefits is a lie.” The $600 figure, meanwhile, was widely deemed as insufficient and inspired severaloutragedstimuluscheckmemes.

Will There Be More Stimulus Checks In Future

You Can Get A Stimulus Check Worth Up To $8,000, But You ...

As things currently stand, a fourth federal stimulus round appears to be unlikely.

Currently, Mr Biden’s Build Back Better Agenda does not include stimulus payments.

And in May, White House secretary Jen Psaki told reporters that the stimulus checks were not free and that another round wasnt in Bidens plans.

Along with getting Biden on board, two corporate Democrats Joe Manchin and Kyrsten Sinema would need to get convinced as well.

This is unlikely because the US is no longer in the heights of the pandemic and is dealing with inflation, as there is huge consumer demand that the supply is not meeting.

Stimulus checks serve the purpose of giving taxpayers a financial boost during an economic downturn.

And that isn’t happening at the moment.

But there has been some mounting pressure to do so 50 Democratic members of the House of Representatives wrote a letter suggesting recurring direct checks, also known as universal basic income.

It read: Another one-time round of checks would provide a temporary lifeline, but when that money runs out, families will once again struggle to pay for basic necessities.

“One more check is not enough during this public health and economic crisis.

It was backed by US Representative for New York Alexandria Ocasio-Cortez and Minnesota’s Ilhan Omar.

Democrats have backed a figure of $2,000, although there aren’t currently any official bills debating a fourth round of checks.

We explain how to track down the latest $1,400 stimulus check.

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Are You Eligible For The Stimulus Check

The 2nd Golden State Stimulus check is quite different from the first edition. The second one is an expansion of 1 stimulus check and not a round of stimulus payments. Quite similar to the Federal stimulus program.

The first round of Golden State Stimulus went to those earning under $30,000, the second payment goes to those earning up to $75,000, with those who got a first payment ineligible for the second, unless they meet certain requirements.

The taxpayers who got their first stimulus checks and claimed a dependent have qualified for another $500 payment.

You need to be a resident of the state for more than half of 2020 and must be the same when the payment is to be received. You also need to fill in your 2020 tax returns by October 15. In order to qualify, you also cannot be claimed as a dependent by someone else.

The standard Golden State Stimulus Check II is a payment of $600.

If you qualified for the first payment and claimed credit for 1 or more dependants the amount will be $500. If you didnt qualify for the first payment and claimed credit for 1 or more dependants the payment will be $1,100.

If you have an ITIN then your payment can be $1,000 if you qualified for the 1st payment and claimed credit for dependents.

Number Of Third Stimulus Checks

Question: How many third-round stimulus checks will I get?

Answer: As with the first two round of checks, the legislation authorizing the third round of payments only calls for one payment. This is not a “recurring” payment situation.

However, some people will receive a supplemental payment if their 2020 tax return is filed and/or processed after the IRS sends them their regular third stimulus check. The IRS is calling these “plus-up” payments, and they’ll only be sent if your regular stimulus check would have been higher if it was based on your 2020 tax return . So, for example, if you received a $700 third stimulus check based on the information found on your 2019 return, filed your 2020 tax return later, and your third stimulus check would have been for $800 if it was based on information from your 2020 return, then the IRS will send you a second payment for the $100 difference.

Some married couples could also get two payments. If a joint tax return is filed, a married couple could get two separate third stimulus payments. Half may come as a direct deposit and the other half will be mailed to the address the IRS has on file. Each spouse should check the IRS’s “Get My Payment” tool separately using their own Social Security number to see the status of their payments.

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Seniors Living With An Adult Child

Question: Will seniors who live with an adult child get a third stimulus check?

Answer: Again, anyone who is claimed as a dependent on someone else’s tax return doesn’t qualify for a third stimulus check. So, elderly people living with an adult child won’t get a check if they can be claimed as a dependent on their child’s tax return.

However, as with college students and young adults living with their parents, an adult child supporting an elderly parent will get an extra $1,400 added on to his or her third stimulus check if the elderly parent is a dependent. Again, the age of the dependent doesn’t matter for third-round stimulus checks like it did with earlier stimulus payments.

When You Can Expect To Receive The $600 Stimulus Check

IRS Sends First Wave Of Stimulus Checks, Second Wave Expected This Week

Now that President Donald Trump has signed off on the $900 billion coronavirus relief bill, many Americans can expect to receive a second stimulus check in the coming weeks, a welcome development for households across the country that could not afford to celebrate this holiday season.

As of last week, direct deposits from the IRS were expected to hit bank accounts before Dec. 31, with paper checks and debit cards sent out to all eligible households by Jan. 15. But with the president’s delay in signing the bill, the payments may take slightly longer to arrive.

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That said, it is possible that direct deposits could still start being deposited under the same timeline, “as soon as this week,” according to a spokesman for Rep. Don Beyer, D-Va., since the Treasury Department was already preparing to make the payments under the assumption that the bill would be signed last week.

Treasury did not immediately return a request for comment, but an official told CNBC that the timeline is expected to be the same.

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