With negotiations on pause for a new COVID-19 relief bill, it’s hard to say who will qualify for a second stimulus check. The Senate returned to work on Monday, but President Donald Trump is currently silent on the matter. However, President-elect Joe Biden has a coronavirus stimulus plan that includes another check.
However, while we don’t know when another payment could arrive or exactly how much money you’d personally get, we do know who made the cut for the first stimulus check and how some key requirements might change.
We’ve also examined the recent proposals for a new stimulus bill and can therefore take an educated guess as to who might not be eligible for a second relief payment. Read on for what we know and don’t. And here are the stimulus check myths and facts you should know. This story was recently updated.
Single taxpayers whose AGI is over $99,000
Your adjusted gross income is the sum of money you earn in one year, minus approved deductions. The IRS uses your AGI to determine if you qualify for all, some or none of the $1,200 stimulus check. Under the CARES Act, your AGI cutoff as a single taxpayer is $99,000 per year to qualify for a stimulus payment. If you earned more than that through a paycheck or other assets, like stocks, the IRS wouldn’t send you a check.
If you make between $75,000 and $95,000, however, you would get a portion of the check, and likely will if the income rules don’t change. Here’s how to calculate how much money you could get.
Heads of household with an AGI over $146,500
Similar to the single-taxpayer cutoff, heads of households (people who don’t file jointly and who claim a dependent) with an AGI over $146,500 were also excluded from the CARES Act — unless you qualified with this loophole. To get some of the stimulus money, you would need to make less than $146,500. To get the full amount, your AGI would need to be less than $112,500 as the head of household.
Married couples who make over $198,000 a year
If you’re a married couple filing jointly and have an AGI above $198,000, you likely won’t be eligible for a second stimulus payment, unless your children create a situation that appears to be an exception. To get the full payment of $2,400, your joint AGI would need to be less than $150,000. The amount you could receive will decrease if your AGI is between $150,000 and $198,000.
To determine your adjusted gross income, locate your 2019 tax statement. You’ll find your AGI on line 8b of the 2019 1040 federal tax form. If you didn’t file taxes in 2019, locate your 2018 tax document and navigate to line 7.
Uncertain: Teenagers over age 16 and college students under age 24
When the first round of stimulus checks was sent, millions of young Americans were excluded from receiving the payment — with these exceptions. Those who were between the ages of 17 and 24, who were also claimed as child dependents, didn’t get a check of their own due to the tax code definition of a child. So if you’re 17 or older, you’re not considered a child under the CARES Act, even if you still live at home.
While the House of Representatives passed a proposal that includes $500 in stimulus money for any person claimed as a dependent, regardless of age, the most recent White House proposal would keep the CARES Act definition, but increase the amount from $500 to $1,000. Even so, if someone claims you as a dependent on their taxes, you won’t get a check of your own. However, now that Biden is president-elect, it’s possible that the White House will withdraw that proposal and introduce something new. We should know more in the coming weeks……Read More>>