Who Would Get the Second Stimulus Check and Who Would NOT?
|Stimulus checks are intended to stimulate the economy by providing consumers with some spending money. Photo: Forbes|
Millions of Americans are now expecting to receive a second stimulus check. But if nothing shows up in your bank account or mailbox, it might be because you're not eligible for a second payment. When the news first broke about the second round of stimulus checks, some people may have gotten the impression that everyone was entitled to one. Unfortunately, that's just not the case.
Just as a second stimulus check was on the brink of passing into law, another complication arose: President Donald Trump did not like the $600 maximum, CNet cites. The president indicated Tuesday night he would not sign the $900 billion stimulus bill -- which is attached to a more than trillion spending bill to find the government -- if Congress does not amend the size of the check to a $2,000 per person limit.
|President Donald Trump called on Congress to approve $2,000 stimulus checks. Photo: NJ.com|
"I am asking Congress to amend this bill and increase the ridiculously low $600 dollars to $2,000, or $4,000 for a couple," Mr. Trump said in the recorded message, as cited by CBS News.
The $600 checks directed by the relief bill would represent half of the $1,200 directed toward most adults in the first round of stimulus checks. Critics had said the aid would be helpful, but not enough to tide over families who have suffered income or job losses since the coronavirus pandemic shuttered the economy in March and caused unemployment to spike.
According to CBS News, almost 6 in 10 consumers say they have suffered a financial hit due to the pandemic as of the end of November, according to a recent study from TransUnion, which also found that 40% of those households had been banking on the prospect of another stimulus check to help them pay their bills.
Mr. Trump's pushback is raising new questions for millions of Americans who are awaiting the next round of checks.
The calculations are different with a $600 second check
Some things changed with the second stimulus check that Congress approved Monday, including a $600 maximum per adult (down from $1,200 per person) with another $600 per child dependent (up from $500). One thing that did not is the formula the IRS uses to calculate your stimulus check total.
The result of some decently complex stimulus check math is that more people will phase out of qualifying for a stimulus check payment, especially if they don't have children 16 and under, the designated age for a qualified dependent, CNet cites.
So for example, if you're a single tax filer, don't have qualified child dependents and your adjusted gross income (AGI) on our 2019 taxes is between $75,000 and $95,000, you would have received a portion of the first ($1,200 max) stimulus check. But at a maximum of $600 per adult, you would phase-out of the second payment once you hit $87,000. Read up more in our second stimulus check calculator and try it for yourself.
To determine your adjusted gross income, locate your 2019 tax statement. You'll find your AGI on line 8b of 2019 1040 federal tax form. If you didn't file taxes in 2019, locate your 2018 tax document and navigate to line 7.
$600 for each "dependent" child
Aside from the smaller stimulus checks for adults, the other major change under the bill passed by Congress is the amount provided for dependent children: $600 for each child, up from $500 in the CARES Act.
However, the bill states says the $600 would be directed toward each dependent child under 17 years old, which means that adults who are nevertheless claimed as dependents — such as college students and older high school students — wouldn't qualify for the checks.
|Photo: The New York Times|
Adult dependents, such as seniors who are claimed as dependents on their adult children's tax returns, also wouldn't qualify for the checks. Excluding college students and other adult dependents was a matter of debate with the first round of checks, with some families arguing that older dependents should also qualify for the payments.
A family of two parents with two child dependents could receive up to $2,400 under the provision, lawmakers said.
Couples who include an immigrant without a Green Card would also qualify for the checks, a provision that is retroactive to the CARES Act, the summary said.
This is important to many families because the first round of stimulus checks only went to American citizens or immigrants with resident alien status, also known as a Green Card. Legal immigrants without a Green Card, as well as undocumented immigrants, were excluded — and American citizens married to immigrants without a Green Card were also excluded, as well as their children, even if the young dependents are citizens.
Denying checks to U.S. citizens due to their spousal or parental relationship to an immigrant prompted lawsuits earlier this year over what plaintiffs claimed was an unconstitutional action.
How about Social Security recipients?
One glitch in the first stimulus payments was a slower rollout for Social Security recipients, as well as Supplemental Security Income recipients, Railroad Retirement Board beneficiaries and Veterans Administration beneficiaries.
But the new bill would ensure that those recipients would receive the $600 checks automatically, according to Senator Maggie Hassan of New Hampshire, who worked on a bipartisan stimulus bill that became the framework for the latest negotiations.
Millions of Social Security, SSI, VA and Railroad Retirement benefits wouldn't risk missing out on receiving the payments.
Who's NOT getting a second stimulus check?
There are a few reasons why you could be left without a second stimulus check. It could be because of your income, age, immigration status, or some other disqualifying factor.
Second-round stimulus checks start at $600 per eligible person ($1,200 for married couples who file a joint tax return). If you have children who qualify for the child tax credit (basically, kids 16 years old or younger), there'll be an extra $600 tacked on for each child. So, for example, a married couple with two children can get up to $2,400.
If you can be claimed as a dependent on someone else's tax return (whether or not you're actually claimed as a dependent), you won't receive a stimulus check. That means no payments to children living at home who are 17 or 18 years old, or to college students who are 23 or younger at the end of the year who don't pay at least half of their own expenses.
Other dependents won't receive stimulus payments, either. For example, an elderly parent living with an adult child is out of luck and won't get a check.
A person who is a nonresident alien in 2020 is not eligible for a second stimulus check. Generally, a "nonresident alien" is not a U.S. citizen, doesn't have a green card, and is not physically present in the U.S. for the required amount of time.
People without a social security number
Generally, you must have a Social Security number to get a stimulus check. To get the extra $600 for a qualifying child, your son or daughter must also have a Social Security number. If they don't, then you probably won't get the additional amount.
There are, however, a few exceptions to this rule. First, an adopted child can have an adoption taxpayer identification number (ATIN) instead of a Social Security number. Second, for married members of the U.S. armed forces, only one spouse needs to have a Social Security number. And, third, if your spouse doesn't have a Social Security number, you can still receive a second stimulus check, including any extra money for qualifying children, if you have a Social Security number.
It may seem obvious that a deceased person isn't eligible for a second stimulus payment. However, only people who died before 2020 are ineligible. Essentially, they're treated as if they don't have a Social Security number. In addition, the extra $600 for each qualifying child is not available if the parent died before 2020 or, in the case of a joint return, both parents died before then.
On the other hand, it seems as if anyone who died in 2020 is still entitled to a second stimulus check. The IRS may send a check to the decedent's address on file or deposit payment in his or her bank account. A surviving spouse filing a joint 2020 tax return could also claim a recover rebate credit for the amount on their return.
People who the IRS doesn't know about
The IRS will automatically send a second stimulus payment to people who filed a 2019 federal income tax return. People who receive Social Security, Supplemental Security Income, Railroad Retirement benefits, or veterans benefits will receive a second payment automatically, too.
However, if the IRS can't get the information it needs from your tax records, or from the Social Security Administration, Railroad Retirement Board, or Veterans Administration, then it can't send you a check.
For more update information, check out KnowInsider website regularly!
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