Lawmakers are still hashing out some of the details for another coronavirus stimulus package, but they have agreed on distributing a second round of direct coronavirus stimulus payments to help those affected by the pandemic.
Who will get the second stimulus payment? How much will the payment be? And when could the stimulus checks start going out? We break it down below.
How much will a second stimulus check be?
It seems almost certain that the next round of stimulus payments will provide up to $1,200 for eligible recipients, and will be included in any coronavirus relief stimulus package passed by Congress.
Senate majority leader Mitch McConnell has confirmed that GOP senators do “want to send a second round of direct payments to American households.”
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An overview of their proposed CARES 2 stimulus package released late last week included a second round of stimulus payments, though it didn’t specify the amount or criteria. But White House advisor Larry Kudlow said on CNN Sunday, “There’s a $1,200 check coming. That is going to be part of the new package.”
More than two months ago, the Democratic-led House of Representatives passed legislation that would offer a potentially larger second stimulus payment than the CARES Act had provided. Under the HEROES Act—which was passed in May by House lawmakers but rejected by GOP senators, who are offering CARES 2 as an alternative—each qualifying household member would get $1,200, including children.
GOP senators, who carry the majority in the Senate, seem aligned on the amount of the payment, but there’s some disagreement on the income thresholds for eligible recipients.
Who will qualify for a second stimulus check?
Under the original CARES Act, single taxpayers who earned less than $75,000 last year could generally expect a payment of $1,200. Married taxpayers who filed jointly last year and earned less than $150,000 would get $2,400. And parents also got another $500 for each child under the age of 17.
For higher earners, the payment amount recipients were eligible for was reduced by 5 percent of the amount that adjusted gross income exceeded $75,000 (or $112,500 for taxpayers filing as head of household and $150,000 for taxpayers filing a joint return) until it reached $0.
Democratic lawmakers, who carry the majority in the House of Representatives, have supported a second round of payments with the same income thresholds, but with an increase in the potential payment amount for children from $500 to $1,200.
GOP lawmakers who control the Senate indicated initially that they wanted to target payments instead at those most in need, hinting at an income threshold of $40,000. Democrats are unlikely to support that though, so the final proposal will likely include a threshold that is closer or equal to that in the original CARES Act.
In fact, Treasury Secretary Steven Mnuchin told reporters that he expects Republican senators’ proposal will be “the exact same proposal” that was in the CARES Act, according to The Hill.
When Could the Next Round of Stimulus Checks Go Out?
For the entire article got to: www.forbes.com