A next round of stimulus is imminent. The questions is, when it will come? It seems there is universal agreement that there will be a second round of $1,200 stimulus checks, and this round will be more direct for Americans.
In March, stimulus checks included up to $1,200 per individual or $2,400 per married couple, plus $500 per child under the age of 17. Full payments were sent to individuals who earned up to $75,000, heads of household with up to $112,500 in income and married couples who file jointly making up to $150,000.
But those payments were gradually reduced for income above those limits, and phased out completely for individuals with adjusted gross income above $99,000; heads of household over $136,500; and married couples above $198,000. From the initial signs, it appears this round will have some variations from the first round of stimulus in March.
What’s Being Proposed
There are a few different proposals on the table for the second round of stimulus. The Democrats have proposed giving $1,200 checks but have suggested raising dependent money up to $1,200 for a maximum of three children. Families would then be eligible for up to $6,000. The plan further calls for eliminating the age cap on dependents and also wants nonresident aliens to be eligible for the money.
Republicans have proposed a bill that calls for $1,200 checks for adults and $500 for dependents. This plan also calls for eliminating the age cap for dependents.
The real question is: when will the stimulus package be approved? Congress needs to come to agreement on the larger coronavirus stimulus package first. The stumbling block seems to be the total dollars being allocated for the proposed package between $1 trillion and $3 trillion.
Congress has a September 30th deadline to approve a new budget for the next fiscal year, and when lawmakers resume talks, it appears that stimulus checks will remain part of the package. It also seems Americans will get those funds faster this round because of the direct deposit access, meaning that if you have direct deposit information on file because of taxes, social security or other support, you will receive stimulus more quickly.
There could, however, still be some delay for others. So while it may be appropriate for those who received a stimulus check in the first round to figure a second payment into their long-range planning, don’t spend it just yet. You should also consider if your household is set to receive electronic payments and take the appropriate steps to ensure you receive your funds as quickly as possible.
If you have questions or would like to discuss further, please reach out to Scott Norcross at firstname.lastname@example.org or 216.736.7264.