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Wednesday, December 2, 2020

5 Things You Need To Know About The Second Stimulus Check

Months long of stalled negotiations have come to an end after Speaker Pelosi and Treasury Secretary Mnuchin announced a resumption of second stimulus check talks. 

Additionally, on Monday, the Democratic Party introduces a stimulus package into the chamber floor. As per reports, the new stimulus package includes all the major pillars of the previous Heroes Act. So, it is safe to assume that the new stimulus plan will include a second stimulus check, federal unemployment benefits of $600 per week, and financial aid for restaurants, airlines, state, and local governments. 

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Late on Tuesday, Pelosi told media sources that negotiations between her and Mnuchin are going well. 

Second Stimulus Check To Eligible Americans: Not An Issue Of Debate

What we must note is that while there are many disagreements between the Republican and Democratic Party, the disagreements are not on whether the new stimulus package should include a second stimulus check to all eligible Americans. 

The White House, the House Democrats, and the Republicans all agree that eligible Americans need to be given stimulus money. All the stimulus plans introduced into the chamber floor have included stimulus checks. 

Your Stimulus Money Will Not Be Taxed

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Stimulus money is not considered income by the IRS. So, even if you receive a second stimulus check of $1,200, your tax will not be affected by it in any way. 

Moreover, the IRS states that if you have not received what you were owed for 2020, the amount can be claimed as a credit when you file for tax returns next year. 

The Second Stimulus Check Distribution Will Be Accelerated 

The first stimulus package was distributed within the first 19 days after the stimulus bill was passed the first time. Steve Mnuchin said that the second stimulus checks can be dispatched much faster than the last time. 

Eligibility Rules Might Be Modified

The good news is that if the lawmakers decide to modify eligibility rules, it will only be done to include more people into the stimulus package. 

It has been reported that the lawmakers are planning on modifying the definition of who qualifies as dependents. Other factors that determine your eligibility for stimulus money include your AGI and your income tax status. Under the last stimulus bill, individuals under the age of 16 were considered dependents and were eligible for $500. 

The IRS Dispatches Stimulus Money On A Priority Basis

The IRS follows a priority basis strategy where certain groups of people receive their stimulus money before others. It’s likely that they will follow the same strategy for the second stimulus check distribution. 

People whose direct deposit information is with the IRS get their stimulus package first. Then comes taxpayers who receive paper checks. Then, eligible candidates with debug cards receive their stimulus money. 

Hopefully, your second stimulus check will be approved in the next couple of days. 

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