Are you ready for a second stimulus check?
Here’s what you need to know.
The first batch of stimulus checks have been sent to millions of Americans. Have you received your stimulus check? Treasury Secretary Steven Mnuchin estimates that approximately 80 million Americans have received their stimulus check this week through direct deposit. The stimulus check, or Economic Impact Payment, is part of the $2.2 trillion stimulus package intended to help Americans in the wake of the COVID-19 pandemic.
Why you haven’t received a first stimulus check
If you haven’t yet received a stimulus check, there may be several reasons, including:
- You may not qualify for a stimulus check;
- You haven’t filed a federal tax return in 2018 or 2019;
- You filed a federal tax return, but your tax return has not been processed;
- You didn’t provide your direct deposit information to the IRS;
- You recently shared your direct deposit information through the Non-Filer online portal, but it hasn’t yet been processed;
- You shared your direct deposit information through the Get My Payment online portal, but it hasn’t yet been processed;
- You receive Social Security or other benefits (although you’ll receive a stimulus check automatically, your information has not yet been added to the Get My Payment tool);
- Your identity couldn’t be verified; or
- You tried to enter your direct deposit information, but could not due to a technical glitch or one of the reasons above.
Did you go to the IRS website and get the error message “Payment Status Not Available?” The reason why may be due to one of the reasons above. The IRS says it plans to update the tool each day as more information and tax returns are processed. If you haven’t provided your direct deposit banking information to the IRS, you will receive a paper check. The IRS will start mailing paper stimulus checks on April 24 and plans to send approximately 5 million checks per week. If that pace is correct, it may take several months for some Americans to receive their stimulus check. The IRS will first send a paper stimulus check to taxpayers with the lowest adjusted gross income on their federal tax return.
A second stimulus check?
Some members of Congress and President Donald Trump have commented that a one-time payment of $1,200 is not enough money for many Americans who have lost their job or faced financial hardship. The CARES Act is the third stimulus bill related to Coronavirus passed by Congress, and a fourth stimulus bill could be possible. During the 2008 financial crisis, for example, the IRS sent two rounds of stimulus checks. What will a second stimulus check look like? Well, here’s one possibility: two congressmen want to give monthly cash payments to Americans who have been impacted by the COVID-19 pandemic. Representatives Tim Ryan (D-OH) and Ro Khanna (D-CA) introduced new congressional legislation — the Emergency Money for the People Act — to provide monthly cash payments to eligible Americans until employment returns to pre-COVID-19 levels.
Emergency Money For The People Act
If passed by Congress in its current form, the Emergency Money for the People Act would work like this:
- Eligible Americans would receive $2,000 in cash per month guaranteed for at least six months.
- These monthly cash payments would continue until the employment to population ratio for people ages 16 and older is greater than 60%.
- The monthly cash payments would not count as income.
- The monthly cash payments would not adversely impact anyone’s ability to qualify for an income-based federal or state assistance program.
Who Would Be Eligible
As with the $1,200 stimulus check (Economic Impact Payment), not every American would be eligible for a stimulus check under the Emergency Money for the People Act. Here’s who would get a monthly cash payment under this legislative proposal:
- Every American adult age 16 and older making less than $130,000 annually would receive $2,000 a month;
- Married couples earning less than $260,000 would receive at least $4,000 per month;
- Qualifying families with children will receive an additional $500 per child, with funds capped at a maximum of three children.
- College students and adults with disabilities who are still claimed as a dependent would be eligible. The individual would receive the monthly payment and their parent or guardian would receive the dependent credit.
- Individuals who are unemployed or who had no earnings would be eligible.
Individuals who were not eligible based on 2018 or 2019 tax returns could be eligible based on 2020 adjusted gross income by submitting two months of consecutive paychecks.
Source: Forbes – Money