Second stimulus check: who won’t get a $600 check? – Community News
Stimulus Check

Second stimulus check: who won’t get a $600 check?

The second round of federal stimulus checks is now hitting bank accounts following President Donald Trump’s signing of the $900 billion stimulus bill last week. Last minute passage of aid legislation will provide modest lift to the 60% of Americans who have suffered financial hardship as a result of the coronavirus pandemic, yet millions may be disappointed to find that they are among the groups ineligible for the payment.

The checks will are $600 for each eligible adult and child — half the amount of the $1,200 checks sent earlier this year. The $600 per person payments are part of the stimulus bill passed by Congress in December and signed by Trump on the evening of December 27.

Efforts by Mr. Trump and Democratic leaders to increase so-called Economic Impact Payments to $2,000 per adult have stalled after Senate Leader Mitch McConnell in December blocked an attempt to vote on the issue. Wall Street analysts say the push has only a slim chance of moving forward, pointing to the additional hundreds of billions of dollars the larger payment would cost.

In drafting the latest stimulus bill, lawmakers have sought to rectify several issues that limited the payment of the first round of checks earlier this year. For example, checks are distributed to: immigrant families with mixed status — families where U.S. citizens are married to immigrants without a green card — a group that failed to receive the checks earlier this year. Children under 17 also receive the same $600 payment as adults, compared to $500 in the first round.

“Children are eligible for the same benefit amount as eligible adults, and families with members of mixed immigration status with a valid Social Security number for one spouse are also eligible for the payments, unlike the CARES Act rebates,” the Tax noted. Foundation on. .

However, the income limits in the most recent stimulus package are slightly different from the income limits set in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, leaving more middle-class families out of aid. And there are a few groups that were overlooked in the first round of checks, who will also miss a second check.

Chief among them: dependent children who are 17 years old and adults who are dependent on someone else’s tax return, as is common with students.

The IRS said on Dec. 29 that the “Get My Payment” website would be up and running “within days” allowing consumers to check the status of their payments and update their bank account information. But as of the morning of January 4, the site was still down.

Below are the groups of people who will not receive a $600 check in the second round.

Dependent child who are 17 years old

The $900 billion stimulus package will lead $600 to every child in a family — as long as they’re considered “eligible children” under the IRS’s Tax Code for the Child Tax Credit. Unfortunately for parents of older teens, the tax code defines “eligible children” as those who have not yet reached their 17th birthday.

In other words, the $600 will be spent on children 16 or younger.

The IRS will use 2019 tax returns to determine their incentive payments, meaning teens who reached their 17th birthday in the second half of 2020 — after tax returns were due to the IRS — could still qualify.

Adult dependents, from students to seniors

According to the Tax Foundation, no adult dependents are eligible for the $600 checks.

This means that most students, who are typically dependent on their parents, are not eligible for the checks. That annoyed some students, who expressed their frustration on social media. Many are grappling with a range of issues during the pandemic, from food insecurity to lost income from campus jobs curtailed due to COVID-19 restrictions.

Older adults, from seniors to the disabled, who are considered dependents are also excluded, a problem some on social media called “a slap in the face.”

Disabled adults and seniors who are claimed as dependents often face increased costs due to things such as higher medical costs.

Singles earning more than $87,000

The second round of checks will have the same type of income waiver as in the CARES Act, cutting incentive checks for income above $75,000 per single person or $150,000 per married couple.

According to the House Appropriations committee, the amount of payments individuals receive is reduced by $5 for every $100 in income earned above these thresholds.

But that formula, combined with the checks’ smaller $600 amount, means the income threshold for receiving money will be lower: Singles earning more than $87,000 don’t qualify — compared to the $99,000 phase-out threshold. for single filers in the CARES Act.

Couples earn over $174,000

For the same reason, married couples will have a lower income threshold for receiving the $600 checks. Couples earning more than $174,000 will not receive payment, compared to $198,000 in the CARES Act.

All in all, almost everyone in the bottom 80% of the US income distribution will receive a check, according to the Tax Foundation’s estimate. The proportion of filers who receive a check decreases for people whose income places them in the top 20% of earners, with very few taxpayers in the top 5% who qualify, the Tax Foundation estimates.