With the majority of the first coronavirus stimulus payments distributed, the question of whether a second round will happen is mounting.
The House on Friday passed another coronavirus relief package, dubbed the HEROES Act, sending it to the Republican-dominated Senate where it’s expected to face stiff opposition. The new legislation is worth $3 trillion and would provide up to $1,200 per individual with a maximum amount of $6,000 per household.
The $2.2 trillion CARES Act included stimulus payments up to $1,200 per qualifying adult, plus $500 bonus for children under 17.
Here’s what else you need to know about the stimulus payments in the HEROES Act.
The new bill will provide payments worth nearly $600 billion, with the average payout of more than $3,000 to families in all but the highest income levels, according to The Institute On Taxation and Economic Policy (ITEP).
Similar to the first stimulus payments, single adults with income up to $75,000 will get the full $1,200 payment. Married couples with income up to $150,000 will get $2,400. Single parents who file as head of household with income up to $112,500 will get the full $1,200 check.
Reduced checks will be available for those who earn above those income thresholds. The payment would be reduced by 5% for every 5% increase in income above $75,000 for individuals and $150,000 for married couples. Eligibility will be based on a taxpayer’s adjusted gross income from their latest tax return.
The benefit is available not only to those who have filed taxes, but also to Social Security, railroad retirement recipients and others, according to the bill.
Will I get additional payment for dependents?
Yes, and it would be bigger. The new bill will give Americans $1,200 for each dependent for up to three dependents. In the first wave of stimulus checks, there was an additional $500 per child dependent, with no limits.
Under this legislation, taxpayers would receive the dependent bonus for any dependent they claimed on their tax return may be eligible. The first stimulus bill provided the additional $500 payment only to dependents aged 16 or under.
Would more people be eligible?
The second wave of payments would extend to Individual Taxpayer Identification Number (ITIN) filers and their families. This change means that more than 4.3 million adults and 3.5 million children would be eligible for the payment, according to ITEP.
The CARES Act required every member of a household to have a Social Security number, leaving millions of undocumented immigrants and their children and spouses, many of whom are citizens, without a payment.
The HEROES Act also includes retroactive changes to the initial stimulus payment, meaning those individuals would likely get the first stimulus payments, too.
Do you have to pay the stimulus check back?
No. Like the first wave of payments, the second stimulus check would be a refundable credit against your 2020 tax liability and would be paid out as an advanced refund. That means you wouldn’t have to wait to file your 2020 taxes to get the money.
Will it pass the Senate?
Republican Senators like Sen. Lindsey Graham (R-SC) and Sen. Ron Johnson (R-WI) doubt there will be a second round of payments. Additionally, Senate majority leader Mitch McConnell dismissed the bill saying: “House Democrats are cobbling together another big laundry list of pet priorities.”
While the bill likely won’t pass the Senate, experts said another stimulus package may be in the offing and could include another stimulus payout.