Stimulus checks: Biggest takeaways to know about your first and second payment

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This is what’s taking place with a second stimulus test.

Angela Lang/PJDM

Washington legislators proceed to bicker over the details of another stimulus package, one that’s nearly assured to comprise a second stimulus check. There’s nothing easy in regards to the back-and-forth state of affairs, or in regards to the checks themselves, and everything they have to do with your taxes, your kids and even in case you’d receive your payment weeks before or after your prolonged household and pals.

We are able to shift by means of all of the clues about how a second direct payment could work, based mostly on the first stimulus payment, sections of previous stimulus proposals from either side of the aisle and the newest particulars of a White House-authored stimulus bill.

This is what you have to know, in broad strokes. We regularly replace this story with new info.

1. Negotiations are nonetheless taking place

This is the fast model: Home Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin will continue to negotiate by means of the week. 

The longer model: Either side of the aisle are weighing the White Home’s $1.8 trillion offer, which arrived Oct. 9 and consists of one other direct payment for up to $1,200 for individuals — in addition to a change within the standing of dependents (extra under). As of Sunday, Pelosi known as the $1.Eight trillion White Home provide “wholly insufficient.” “Nonetheless,” she added, “I stay hopeful that the White Home will be a part of us to work towards a reduction bundle that addresses the well being and financial disaster dealing with America’s households and can accomplish that quickly.”

The White Home additionally pitched using money left over from the CARES Act as a fast approach to get some help out now, nonetheless the funds would not cowl a second test.

2. A change in eligibility guidelines may end in greater than $1,200

Whereas we count on a second stimulus test to largely comply with the identical tips as the primary, the requirements are topic to alter. That may even profit your loved ones. One method redefines who counts as a qualifying dependent and would give your loved ones $500 for every dependent you establish in your taxes, no matter age. 

The current $1.8 trillion proposal from the White House presents a $1,000 fee per baby dependent. We have damaged down how some families would benefit more from one approach versus the other relating to your complete fee. (This is how young people would qualify for their very own $1,200 test.)


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

Angela Lang/PJDM

3. US leaders actually need you to have one other stimulus test

Democrats need it. Republicans need it. And Trump additionally desires to ship one other spherical of checks out to Individuals. In actual fact, every stimulus proposal for the reason that first check started going out in April has included a second direct fee. 

Although a brand new fee is wrapped up in a invoice of 1 type 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.

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

The IRS has already gone by means of the rising pains of determining the way to mobilize and ship one spherical of stimulus cash. In idea, the company may velocity up the method of sending the primary batch of funds, when and in the event that they’re authorised. The monitoring device is already up and operating, the system is in place and it is seemingly that almost all of people that certified for a primary test will even obtain one other.

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

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Subsequent stimulus checks: What to anticipate


5. 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 right down to the way you’re getting paid. For instance, direct deposit — an digital switch of funds into your checking account — may occur weeks earlier than folks begin to obtain a paper test or prepaid EIP card in the mail. We recognized five priority groups based on the first stimulus checks.

6. A $1,200-per-person stimulus test is just a part of the story

The $1,200 most per particular person is a probable cap for a second stimulus fee, however there’s far more to know. Not everybody will get the total $1,200, and a dizzying set of rules decides your share (extra under). Nonetheless, if {qualifications} develop, households may get more money in the second round.

7. Cost particulars can get sophisticated, fast

When and if a second stimulus test does get authorised, the main points would require some unraveling. Whereas some conditions are easy, different problems about you and your dependents could make it unclear in case you’re eligible and for a way a lot. Fringe instances abound. 

For instance:

8. You possibly can already estimate your complete stimulus quantity

For those who’re still waiting for your first payment or wish to estimate how a lot a second test may embody, our stimulus check calculator is right here to assist. Do not forget that the principles are advanced and hinge on a wide range of components, like your AGI (here’s where to find it). Our calculator device does not retain your private particulars in any manner. 


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

Sarah Tew/PJDM

9. 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 fee you get this yr will not scale back your refund in 2021 or improve the quantity you owe while you file your 2020 tax return. You additionally will not should repay a part of your test in case you qualify for a decrease quantity in 2021. The IRS stated in case you didn’t receive everything you were owed this yr, you possibly can declare it as a credit score in your 2020 federal revenue tax return by submitting in 2021. This is everything to know about stimulus checks and taxes.

There’s far more to learn about different authorities funds in the course of the pandemic, together with a possible interest check from the IRS and the place the $300 federal unemployment benefit is now.

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Clifford Colby