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Second stimulus check: 8 key facts to know about the next payment

Here is what’s occurring with a second stimulus verify in the present day.


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The trail to a second stimulus check retains zigging and zagging. As of Thursday, President Donald Trump indicated that he needs Congress to pursue a invoice to ship a second stimulus payment to qualifying Americans

It is the newest shift in an erratic week that noticed Trump — who’s taking the steroid dexamethasone after being hospitalized for COVID-19 — trying to call off negotiations for a new stimulus bill after which re-establish talks to cross a broad economic relief package. One other direct payment for up to $1,200 is on the agenda, with Treasury Secretary Steven Mnuchin and Speaker of the Home Nancy Pelosi talking nearly every day.

Stimulus checks are something however easy, particularly in terms of {qualifications}, calculating your full estimate and determining how taxes slot in. We lower by the ever-changing chaos with the principle takeaways it is best to know. Here is the latest status on stimulus talks and once we suppose the IRS could send a new check. This story updates usually.

1. Prime US leaders need you to get one other verify

For the reason that first stimulus check started going out in April, there have been several proposals for additional stimulus — they usually all embody a second direct cost. Trump has been particularly smitten by getting one other spherical of checks out to People. 

Whereas a brand new cost is wrapped up in a invoice of 1 kind or one other that has to cross each chambers of Congress and get the president’s signature, that is one aspect on which all of them agree.

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Excessive unemployment charges and a faltering economic system underscore the necessity for extra assist.


Angela Lang/PJDM

2. The IRS would possibly ship stimulus funds to you quicker

The IRS has already gone by the rising pains of determining the best way to mobilize and ship one spherical of stimulus cash. In idea, the company might pace up the method of sending the primary batch of funds, when and in the event that they’re accredited. The monitoring software is already up and operating, the system is in place and it is possible that almost all of people that certified for a primary verify may also obtain one other.

The timeline is continually shifting, however we mapped out potential dates a check could be sent if accredited earlier than — and after — the election.

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Subsequent stimulus checks: What to anticipate



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3. There are completely different precedence teams for sending funds

Not everybody will get their checks on the identical time and a few of that comes all the way down to the way you’re getting paid. For instance, direct deposit — an digital switch of funds into your checking account — might occur weeks earlier than individuals begin to obtain a paper verify or prepaid EIP card in the mail. We recognized five priority groups based on the first stimulus checks.

4. A $1,200-per-person stimulus verify is barely a part of the story

The $1,200 most per particular person is a probable cap for a second stimulus cost, however there’s rather more to know. Not everybody will get the total $1,200, and a dizzying algorithm decides your share. Nevertheless, if {qualifications} increase, households might get more cash within the second spherical.

5. A change in eligibility guidelines might end in greater than $1,200

Whereas we predict a second stimulus verify would largely observe the identical pointers as the primary, eligibility requirements are topic to alter. It’d even profit your loved ones, if a brand new stimulus invoice redefines who counts as a qualifying dependent and offers your loved ones $500 extra for individuals you establish in your taxes.

6. Fee particulars can get sophisticated, fast

When and if a second stimulus verify does get accredited, the main points would require some unraveling. Whereas some conditions are simple, different issues about you and your dependents could make it unclear in the event you’re eligible and for the way a lot. Fringe instances abound. 

For instance:

7. You possibly can already estimate your whole stimulus quantity

In case you’re still waiting for your first payment or wish to estimate how a lot a second verify might embody, our stimulus check calculator is right here to assist. Keep in mind that the principles are advanced and hinge on quite a lot of components, like your AGI (here’s where to find it). Our calculator software would not retain your private particulars in any approach. 

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Lower than 1 / 4 of eligible recipients obtained their cost as a verify within the mail.


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8. You will not pay taxes on the cash irrespective of when it arrives

The IRS doesn’t consider stimulus money to be income, and a cost you get this yr will not scale back your refund in 2021 or improve the quantity you owe whenever you file your 2020 tax return. You additionally will not should repay a part of your verify in the event you qualify for a decrease quantity in 2021. The IRS stated in the event you didn’t receive everything you were owed this yr, you may declare it as a credit score in your 2020 federal revenue tax return by submitting in 2021. Here is everything to know about stimulus checks and taxes.

There’s rather more to find out about different authorities funds through the pandemic. Here is what you want to find out about a possible interest check from the IRS, the $300 federal unemployment benefit and the administration’s payroll tax cut.

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Clifford Colby