The CARES Act included a one-time stimulus check of $ 1,200 per qualifying adult, with an additional $ 500 per qualifying dependent, age 16 and under. Most of those stimulus checks have already been issued and the money spent a long time ago.
However, many Americans are still struggling, so many ask if there will be a second stimulus check and, if so, who will qualify and how much it will cover.
Right now, we don’t have those answers. But we can guide you through everything we know so far, including the stimulus verification details found in the HEROES Act, which passed the House and is awaiting a vote in Congress. We will also cover the various official stimulus proposals that have been made and additional information on another stimulus verification based on statements made by government officials.
As for a schedule, we may not have any official information until mid or late July. What happens from time to time regarding coronavirus numbers, unemployment numbers and the economy will greatly affect the likelihood of a second stimulus check.
Finally, keep in mind that this is an election year. Several reports say President Trump is in favor of a second stimulus check, with the understanding that a second stimulus check may help his chances of another election. After all, he had his signature added to the Memo section of authorized financial aid payments under the CARES Act, even though they were not mandatory and he delayed the initial mailing date of the checks.
The first stimulus control under the CARES Law
Many of the second stimulus verification proposals are based on the CARES Act stimulus verification eligibility criteria, so we will cover this as our baseline. As we covered earlier, the CARES Act authorized stimulus payments of $ 1,200 per qualifying adult and $ 500 per qualifying dependent child age 16 and under.
Ratings were based on the following:
- Whether or not you have a social security number
- If someone can claim you as a dependent on your tax return, and
- Your adjusted gross income (AGI) from your most recent tax return (2018 or 2019).
Income limits were based on your AGI for the most recent fiscal year on record: 2018 or 2019:
- Adjusted gross income was less than $ 75,000 ($ 150,000 for married couples filing jointly).
- The payment is gradually reduced for income between $ 75,000 – $ 99,000 for individuals ($ 150,000 – $ 198,000 for married couples).
- Those with an AGI greater than $ 99,000 ($ 198,000 for married couples) are not eligible for a stimulus check.
- Additional $ 500 for each qualifying child age 16 and under.
- No stimulus verification for dependents over the age of 17 if claimed as dependents on their parents’ tax return.
There are several important points about eligibility:
- People were not eligible if they did not have a Social Security Number. Many married couples were excluded if one spouse had an individual taxpayer ID, even if the other spouse had an SSN.
- Dependents over the age of 17 would be excluded if they could be claimed on someone else’s tax return, even if they worked and paid taxes, leaving millions of high school and college workers.
Most of the proposals for a second stimulus check worked to correct these problems.
Second stimulus check proposals
There have been several notable stimulus verification proposals to date. Let’s start with the largest one, the HEROES Act, which is a $ 3 billion stimulus bill that includes a stimulus check as well as a “wish list” of other line items. For the purposes of this overview, we will only cover the stimulus test portion of the HEROES Act.
We will also cover the other proposals to date and discuss where they are and the likelihood of their approval.
HEROES Act Stimulus Verification Proposal – Probability of approval, not excellent (but there is hope; see notes)
The HEROES Act was passed by the House and is currently awaiting a Senate vote. Includes a stimulus check of $ 1,200 per adult and $ 1,200 per qualifying dependent, up to three dependents per family, for a maximum of $ 6,000 per family.
Unlike the CARES Act, the HEROES Act provides stimulus verification for all dependents, regardless of age, up to 3 per family. This means that dependents 17 years of age and older who were excluded from the CARES Law would be included in the stimulus verification program of the HEROES Law. The HEROES Act would also provide stimulus payments for dependent adults who also fell outside the CARES Act.
Those who have an individual taxpayer identification but do not have a social security number are also included in the HEROES Act (these people were also excluded from the CARES Act).
Income eligibility was the same as the eligibility requirements for the CARES Act.
Odds of passing: Not good. The HEROES Act is simply too massive and contains many additions that are not necessary. Senate Republicans compared him to a Democratic “wish list” and Senate Majority Leader Mitch McConnell declared him “dead on arrival” in the Senate.
However, there is hope for this framework. The framework for the stimulus verification part of the bill could easily be used for another stimulus verification if Congress decides to pass one. Look out for the details of this program, as this is the most likely stimulus verification proposal to date.
$ 2,000 monthly stimulus check proposals
There have been several other notable stimulus verification proposals, several of which requested a $ 2,000 monthly stimulus verification during the Covid-19 crisis.
Here are the proposals to date, with a brief description and links to further reading.
- the Emergency money law for the people would provide a $ 2,000 monthly stimulus check for up to one year. Here is a complete description of the Emergency Money for People Act.
- the Law of Automatic Promotion to the Communities (ABC) would provide a $ 2,000 monthly stimulus check for at least 12 months during the pay period, with an additional $ 1,000 monthly payment for the following 12 months. Adults and dependents would receive the same amount each month and there would be no income limit for the stimulus payment. Complete summary of the ABC Law.
- The Monthly Economic Crisis Support Act would provide a $ 2,000 monthly stimulus check for individuals and up to three dependents for at least six months. The income limits for this proposal are different from those of the CARES Law. You can get more information in this Overview of the Monthly Economic Crisis Support Act.
These proposals would offer welcome financial relief for many people, but would come at a huge cost. We have estimated that a $ 2,000 monthly stimulus check could cost between $ 3 billion and $ 10 billion.
Odds of passing? Next to zero. The cost of these programs is simply too high. And while a monthly stimulus check would provide ongoing support, there are more efficient and cost-effective methods of sending money to those in need, rather than sending it to everyone. Here are more reasons why these $ 2,000 monthly stimulus checks are unlikely to pass.
Other current stimulus proposals
There have been several other proposals in Congress. These are some of the most outstanding proposals to date:
- The Rent and Mortgage Cancellation Act would cancel rent and mortgage payments for an individual’s primary residence for up to one year, with a limit of one per household. Rent and mortgage payments would be paid by the Rental Property Assistance Fund and the Housing Lender Assistance Fund, both created by law and administered by the Department of Housing and Urban Development. You can learn more in this overview of the Rentals and Cancellations Act.
- The American Return to Work Act would provide a payroll tax refund that covers 80 percent of payroll expenses, making it easier for companies to hire and retain employees. You can read the proposal here.
- The United States Tax Incentive and Refund Program Act (TRIP) would offer a tax credit of $ 4,000 per adult (plus $ 500 per qualifying child) for taking vacations at least 50 miles from home.
Odds of passing? The Rent and Mortgage Cancellation Law and the TRIP Law have little chance of being passed. However, there have been several discussions of payroll tax exemptions and similar tax cuts to promote the hiring and retention of employees. This bill, or a similar proposal, has a chance of being passed in the next stimulus package.
Other possibilities for the next stimulus package
Several government officials have made statements or hinted at what they believe the next stimulus package will include. While there is support for a second stimulus check, it is not universal. In general, Democrats are more in favor of a second stimulus check, while Republicans are more inclined to provide relief through other means, such as proposals designed to improve employment.
Here is some of the coverage we have on this topic:
President Trump Supports Another Stimulus Control: Will Congress Endorse It?
What your next stimulus checkup would look like
Isn’t there a second stimulus check? Mnuchin says next stimulus package to focus on employment
HEROES Act Proposal – $ 1,200 stimulus check for individuals and up to $ 6,000 for families
Stimulus Payment Round 2: A summary of the 5 current stimulus proposals
Stimulus proposal: $ 2,000 monthly payment plus $ 1,000 per month up to 1 year after the crisis ends
New $ 2,000 Monthly Stimulus Payment Proposed by Senators Harris, Sanders, and Markey
Proposed: $ 2,000 monthly stimulus checks and canceled rent and mortgage payments for 1 year
Trump’s economic adviser proclaims that another stimulus bill will come “sooner rather than later”
$ 2,000 monthly stimulus check? 5 reasons why it can’t happen