It is highly unlikely that a new stimulus package including a fresh stimulus bill would arrive before the elections on November 3. We have discussed the main points that you should be aware of at this point as the negotiations take place.
1: Hoping for Stimulus Check Round 2
It was reported that Nancy Pelosi, House Speaker, and the Democrats would refuse to vote on a COVID bill unless Mitch McConnell, Senate Majority Leader, would take it up for voting before the election. Possibly Senate Republicans might still refuse stimulus check round 2, since, awaited “skinny” stimulus bill and $500 billion payroll protection were aborted.
If Pelosi and Mnuchin, Treasury Secretary, positively work together this week, the stimulus bill might be passed before 2020 ends.
2: IRS Formulation
It is believed that 9 million eligible people did not receive the first check as they had to take an extra step to get themselves registered to the IRS. The Stimulus package includes sharing money between people with dependents.
3: Payment Calculation
According to the CARES Act, the IRS is tabulating the partial or full payment procedure in case of child custody and gross income until March.
4: Inclusion of Incarcerated People in the Stimulus Package
CARES Act has a loophole for incarcerated families to receive benefits from the stimulus check round 2. Approximately 2 million families will be included in the stimulus package.
5: Benefits of the Stimulus Package
Based on a poll conducted by the Federal Reserve Bank of NY, out of 1,300 families who have received stimulus package from June till August:
A: 36.4% turned it into savings
B: 29% utilized it for various essential and nonessential purposes
C: 34.5% paid off debts
6: 5 Categorization of Payments
Citizens with direct deposit are eligible for faster IRS check than others who need paperwork and prepaid EIP card via mail.
7: Easy Access to the Second Payment
With the IRS mode of mobilization and distribution of funds and a tracking mechanism in place, citizens are likely to receive money after the stimulus check round 2 much faster.
8: Eligibility Changes Benefits More
Though the basic guidelines remain unchanged, the stimulus check round 2 proposes to allot $500 for each eligible dependent to the respective family. The Recent $1.8 trillion stimulus package will offer $1,000 per child dependent.
Unclear exceptions in stimulus check round 2 are:
A: Exceptions for older and superannuated citizens
B: More funding for people sharing child custody
C: Migrant US citizens are also eligible
D: Differing process for recipients of Social Security Disability Insurance
E: Recent immigrants will have to wait longer
10: Tax Exemption
The IRS has exempted stimulus packages from taxation. In case of partial payment, the remaining can be claimed as a credit in 2021 Federal IT return filing.