Negotiations around a new stimulus package are expected to pick up momentum this week, as the Senate returns to work and Democratic and Republican lawmakers say they plan to prioritize relief efforts. That means a second stimulus check of up to $1,200 for eligible Americans is still on the table.
We won’t know exactly who will be qualified to get a second stimulus check or when to expect it until a final package is approved — either before the end of the year or after the Jan. 20 inauguration of President-elect Joe Biden. (Here’s Biden’s coronavirus stimulus plan, which does include direct payments to eligible Americans.)
Whatever happens, it’s likely that the structure of another stimulus check would closely model the guidelines from the first stimulus payment, which was set in the CARES Act passed in March. However, there may be some changes to the eligibility rules that mean certain groups of people may not be able to receive a payment this time around.
We’ve broken down the highlights from recent proposals for a new stimulus bill to look for clues on who might not be eligible for another stimulus payment. We regularly update this story with new information.
Single taxpayers who have an AGI 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.
However, if you make between $75,000 and $95,000, 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 households who have 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……..Read More>>