Second stimulus check: House GOP nullifies a $2,000 proposal, leaving a $600 deal in limbo – Community News
Stimulus Check

Second stimulus check: House GOP nullifies a $2,000 proposal, leaving a $600 deal in limbo

If a deal is reached, experts say it will take at least two weeks for the Treasury to deposit funds into individuals’ bank accounts after new legislation is signed.

“The timing could be more challenging this time around, but the IRS could probably start disbursing the money in January,” said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.

In March, Congress provided individuals with $1,200 direct payments and couples with $2,400 plus $500 per child under the $2 trillion CARES Act.

As with that first round, the $600 payments included in current legislation would be phased out for individuals with adjusted gross incomes over $75,000, and those earning more than $99,000 will receive nothing. For couples, the income thresholds are doubled.

It took two weeks after the first bill was passed for the IRS to start distributing the money — but some eligible recipients still haven’t received it months later.

Who will get the money the fastest

The payments do not all go out at once. Those whose bank details are those registered with the IRS are likely to get the money first because it is deposited directly into their account. Others receive paper checks or prepaid debit cards in the mail.

About 90 million people — more than half of those eligible — received their payments within the first three weeks of April after the March deal was signed. Most people had their money within two months.
Still, about 12 million eligible Americans risked not getting the money at all because the IRS couldn’t reach them. While most people received the money automatically, very low-income earners who don’t normally file tax returns had to register online before Nov. 21 to provide their address or bank account number.

Tax authorities under pressure

If Congress keeps the eligibility requirements the same as it did for the first round of checks, the process could be almost as simple as pressing a button. But it can complicate things if the parameters are changed, especially if: Congress adds restrictions in addition to income.

Additional checks may be delayed the start of the 2020 tax return season. A second stimulus check will require the agency to make changes to the declaration forms, some of which have already been sent to the printers.

“I believe the IRS will deliver the stimulus checks in a timely manner. It may well come at the cost of filing season start date,” said Chad Hooper, the executive director of the Professional Managers Association, which advocates for more than 30,000 nonprofits . – IRS workers’ union.