We help you calculate the maximum amount that could end up in your pocket if another stimulus payment comes your way.
Angela Lang/CNETA second stimulus check worth $1,200 might still be approved this year if Congress can restart talks to pass a larger bill, or if a future executive action draws money from existing pandemic programs to help eligible adults and their dependents, who can't get their own stimulus check.
"I'm optimistic," House Speaker Nancy Pelosi said Friday about the prospects of passing legislation that incorporates a second stimulus check. "I do think that we should have an agreement. That's what we all want." Pelosi's public outlook contrasts with Senate Majority Leader Mitch McConnell, who has expressed that he has little faith in an agreement being finalized before the Nov. 3 election.
What remains constant is that both sides of the aisle approve of another direct payment and that the funding should cast a wider net for more people than the first economic impact payment, as the stimulus money is officially known. In that spirit, we've detailed some typical scenarios below that illustrate how you much you could get based on factors like your yearly income, and how it could even be larger than the first bill. This story updates often.
Read more: These 9 million people who didn't get their first stimulus check can still get paid
Your total payment could exceed $1,200. Here's how to calculate it
Piecing together how much stimulus money you and your family could receive can get tricky, but we'll help you estimate. The $1,200 figure for individuals is based on guidelines from the last stimulus bill and two proposals, and uses your adjusted gross income, or AGI, and a set of rules to determine the total you could personally expect.
Watch this: Next stimulus checks: What to expect
3:03
But there are also allowances for your whole family, including up to $2,400 if you file jointly with your spouse, as well as more money for dependents. In the first stimulus check, only dependents aged 16 or younger could qualify for an extra $500 each toward the family total. There's bipartisan support to include more people this time, which means you could potentially receive more from a second round of payments than from the first.
We lay out some potential scenarios below, based on our stimulus check calculator, which you can also use to get a more specific estimate for your particular situation.
Stimulus check calculations
| Scenario 1 | Scenario 2 | Scenario 3 | Scenario 4 | Scenario 5 | |
|---|---|---|---|---|---|
| Filing status | Single | Head of household | Married | Married | Married |
| 2018 or 2019 tax AGI | $75,000 | $90,000 | $100,000 | $100,000 | $200,000 |
| Dependents under 17 (CARES Act) | 0 | 1 | 2 | 2 | 2 |
| Dependents over 17 (HEALS Act) | 0 | 0 | 0 | 2 | 0 |
| Estimated check amount | $1,200 | $1,700 | $3,400 | $4,400 | $900 |
The most money your family could expect with a second check
Depending on how negotiations shake out, the total amount your family may get could change. Here's a look at the caps put in place to give you an idea of what government leaders are thinking.
CARES Act: With the CARES Act from March, there was no limit to the number of children who could count as dependents, as long as they were under 17 and claimed by the taxpayer on the tax return, according to the Tax Foundation. Each dependent would garner the taxpayer $500. Theoretically, a family in which two adults and six children under 17 were eligible for the full amount could receive $5,400.
HEALS Act: Similarly to the CARES Act, the HEALS Act put forth by Republicans doesn't mention a cap on the amount a family may receive. The difference is that it doesn't limit dependents to those under 17 to qualify for the $500 payment.
Heroes Act: The Heroes Act, put together by the Democratic-led House and which has never been taken up by the Senate, would place a cap of $6,000 on households of five or more. Essentially, it proposes $1,200 for each adult and dependent, with a maximum of three dependents per family.
The amount of stimulus money you could get in a second round of checks is still undecided.
James Martin/CNETHow the IRS could send your stimulus payment
While there's no official plan yet, it's likely that receiving this second stimulus check would work much like it did the first time around.
Direct deposit: If you filed taxes in 2018 or 2019 and included direct-deposit banking information, it's likely you can receive your check as a direct deposit. Even if you didn't file your direct deposit information with the IRS during tax season, you should still be able to opt in. If you asked for an extension on your taxes, you can still file them before the Oct. 15, 2020, deadline and choose to share your direct deposit information with the IRS. If another round of stimulus payments is authorized, the IRS is likely to reopen the online tool it used for the first round and let you log your information then.
A paper check in the mail: If you don't register your banking details with the IRS, you'll likely receive a paper check in the mail, which you can deposit or cash. If you've recently moved, make sure to file your change-of-address paperwork. The IRS will use your last known address, which could hold up delivery of your check or otherwise cause a delay.
EIP card: Under the CARES Act, about 4 million people were also sent money in the form of a prepaid economic impact payment card, a payment that you can spend like cash on a debit card. The cards came in plain, unmarked envelopes.
How Americans used their first stimulus checks
A recent survey looked at how Americans are using their stimulus checks. According to research from the National Bureau of Economic Research:
- 15% of recipients said they spent or would spend most of their checks.
- 33% said they mostly saved.
- 52% said they paid down debt.
In general, the report found that lower-income households were significantly more likely to spend their stimulus checks, higher-income individuals were more likely to save it and those with mortgages or who were renters were much more likely to pay off debt.
Looking for more stimulus check information? Read up on all the finer points of the stimulus payment here. If you're still waiting for your first stimulus check, here are 10 possible reasons for a delay, what you can do if you think your payment was lost or has fallen through the cracks and if you could receive two refund checks from the IRS.
Shelby Brown contributed to this report.
from CNET https://ift.tt/2ZzIWGV
via IFTTT
No comments:
Post a Comment