Second stimulus check: 7 biggest takeaways you need to know right now
Washington lawmakers continue to say they want to pass athat could include . In the most significant development on more financial aid for Americans in nearly two months, House Speaker Nancy Pelosi and Secretary of the Treasury Steven Mnuchin have agreed to resume negotiations.
“We are having our conversations with the administration. It is in good faith,” Pelosi said on CNN’s State of the Union on Sunday. “I am hoping for a deal. I’d rather have a deal to put money in people’s pockets than to have a rhetorical argument.”
As talks inch forward (and thebegin this week in the run-up to ), we can hone in on the most important details to know right now, including where the bill stands today, how fast you may receive and how those are reflected on your taxes. We recently updated this story.
Everyone wants to give you another stimulus check
There’s strong bipartisan support to provide another direct payment(more on that below). Republican and Democratic lawmakers, and President Donald Trump, all want a solution that includes a second stimulus check, among (like .)
In fact, provisions for a second check have been part of a new and smaller rescue bill Pelosi has instructed House Democrats to draft. The House of Representatives could vote on the new proposal Oct. 2., one authored by Democrats and one by Republicans. And another stimulus check is also expected to be in
You won’t pay taxes on stimulus money
The IRS doesn’t consider stimulus money to be income, and a payment you get this year will not reduce your refund in 2021 or increase the amount you owe when you file your 2020 tax return. You also won’t have to repay part of your check if you qualify for a lower amount in 2021. The IRS said if you didn’t receive everything you were owed this year, you can claim it as a credit on your 2020 federal income tax return by filing in 2021.
The IRS could speed the process to send checks
The IRS and Treasury Department sent theto recipients in 19 days. Treasury Secretary Steven Mnuchin has said he could send them much faster this time, once new legislation is signed.
“I could get out 50 million payments really quickly,” and start making payments a week after a bill is signed, Mnuchin said in August. We .
Eligibility rules could change to your advantage
While we think a second stimulus check would largely follow the same guidelines as the first,are subject to change. It might even benefit your family, if a new stimulus bill redefines .
Other notes on eligibility:
The IRS has a plan for who receives a check first
With the first check, the IRS and the Treasury Department sent checks three ways: direct deposit, physical checks and June), this is how the nearly 160 million payments break down:. According to the most recent numbers from the Treasury Department (in
- Direct deposit: 75%, or 120 million payments
- Paper check: 22%, or 35 million payments
- Prepaid EIP debit card: 3%, or 4 million payments
It’s expected you’ll receive your money fastest with direct deposit, followed by the check and then the EIP card. Read. The IRS automatically picks the payment method, but is likely to reopen its portal to if new legislation passes.
We already think we know how much money you could get
If you’reor are looking for an estimate for how much a second check could include, you can use our to get an idea for how much you, your family and could expect to receive, especially if qualifications shift with another stimulus check. Our calculator tool doesn’t retain your personal details in any way.
Payment details can get complicated, fast
When and if a second stimulus check does arrive, the details will require some unraveling. While some situations are straightforward, other complications about you and your dependents could make it unclear if you’re eligible, the size of a check you should expect and when it’s coming. Fringe cases abound.
There’s much more to know about other government payments during the pandemic. Here’s what you need to know about, the and .