As negotiations between Democrats and Republicans on a new relief package continue and one point at which there seems to be almost complete agreement is in sending a second stimulus check, there are still taxpayers who are waiting to receive their first direct payment. Read on to learn who will receive it next week, as from August 3rd.
The distribution of paper checks was organized according to the beneficiaries’ income level. Taxpayers with annual incomes between $ 140,001 and $ 150,000 would be receiving their paper stimulus checks starting next week as defined in the CARES Act.
Preliminary calendar data available from the Internal Revenue Service (IRS) specify that this is the group to which payments will be sent this Friday.
The distribution of financial aid began on April 24, after the IRS, in coordination with the Treasury Department, deposited the economic impact payments in the bank accounts of the beneficiaries who provided that information. There were also 4 million Americans that received payments in the form of a debit card.
Recently, the Treasury Department acknowledged in a letter sent to representatives in the federal Chamber, that some 44,000 recipients had requested a replacement of the plastic money until the date of June 17, which indicates that this amount corresponds to people who accidentally threw the card to the trash because they doubted its authenticity. In the same report, it is indicated that 73% of the cards have been activated. The IRS has sent a notice to let people know what the card looks like, and information on how to ask for a replacement, if necessary.
These processes are added to the initiatives led by these agencies to locate at least 12 million low-income beneficiaries for whom they do not have tax information to process their payment. For these potential recipients, the IRS enabled the “No-filers” tool, featured on the website of the tax collection office.
The dates extend until September 11 with the distribution of money to the beneficiaries with the highest joint income ($ 190,001 - $ 198,000).
Here is the preliminary payment calendar:
• $ 140,001 - $ 150,000: July 31
• $ 150,001 - $ 160,000: August 7
• $ 160,001 - $ 170,000: August 14
• $ 170,001 - $ 180,000: August 21
• $ 180,001 - $ 190,000: August 28
• $ 190,001 - $ 198,000: September 4
• Rest of checks: September 11
HEALS Act: Who is eligible for the new stimulus check?
The Republican proposal for the next relief package, called the HEALS Act, is finally on the table and it includes a second stimulus check. Which Americans will be eligible for the direct payment if the bill passes as is?
The HEALS Act pushed by Senate Republicans to send new financial aid would follow the payment guidelines established in the CARES Act, although there is a change that will add new beneficiaries.
The proposal has barely begun to be discussed with Democrats, who - among other things - could seek to integrate US couples of undocumented immigrants as beneficiaries, something that was left out by the CARES Act, and that now even has support from some Republicans.
If Democrats fail to expand the criteria, which is what they proposed in the HEROES Act passed last May, people qualifying for a check would be the following:
1. A person with an adjusted gross income of less than $ 75,000 would receive $1200. From there - and up to an annual gross income of $99,000- the amount will be progressively reduced.
2. Head of household earning less than $ 146,500 annually
3. A couple filing a joint tax return without children and earning less than $ 198,000 annually
4. A dependent of any age (the previous aid included only children under 17).
5. Students under 24 years old
It should be noted that the HEALS Law excludes people in prison.
“(The HEALS Act) includes a few people who were involuntarily left out of the last one. Mainly dependents, college and adult, who are dependent on someone else, ”said Senator Chuck Grassley (Iowa).
An important fact is that the banks will not be able to retain the money to pay any outstanding debt of the account holders.
The rule is expected to be approved no later than the following week, so the money could be sent in mid-August, but for this, both parties must agree on issues that may be difficult and to which they have referred to as dealbreakers.
HEALS Act: How will the IRS send the new $1,200 financial stimulus check?
After months of waiting, the Republican proposal for a new stimulus package has finally been unveiled and it includes a vital lifeline for many Americans: a second $1200 stimulus check. How will it be sent?
A new stimulus check has now been confirmed and the amount and income threshold follow the criteria of the CARES Act. There is a change, anyway in who it considers eligible dependents. Unlike the bill passed in March, this new legislation would include dependents regardless of age, thus including children over 17, college students under 24, and older people.
Therefore, people who make $ 75,000 a year or less, for example, received the full amount, and people who make more than $ 75,000 and from that amount - and up to an annual gross income of $ 99,000- the amount will be progressively reduced.
People who earn more than $ 100,000 a year did not qualify for payment.
The transfer could be similar to the plan used for the previous stimulus check, but an option may be added: the money transfer applications.
The current forms that the Tax Collection Office (IRS) and other dependencies of the Treasury Department use to send the funds are:
1. Direct deposit. Those who filed their tax reports in 2018 and 2019 were made a direct deposit in their provided bank accounts. This is what the IRS encourages for it is the way Americans receive their payment faster. Information for direct deposits must be entered in the Get My Payment IRS enabled tool
2. Sending a check. A check was sent to people who did not have a bank account, but had a physical address and also to those who presented problems with direct deposits in bank accounts.
3. Debit cards. The authority sent debit cards to more than 4 million citizens.
The Democrats' HEROES Act integrates sending payment through applications such as PayPal, but Republicans have not spoken about that option.
Following the schedule of approval of the new aid, it could begin to be sent in mid-August to the first people and it is expected that, given the problems solved with the first shipment, more citizens and families will receive their payment faster.
The possible calendar for a second stimulus check
Democrats and Republicans are finally debating a new relief bill and they are on a time crunch to get help to American homes as new cases of COVID-19 surge nationwide and most benefits of the CREAS Act have ended or are ending soon.
Senator Chuck Grassley said on Monday that the HEALS Act will follow the CARES Act stimulus check model, as reported by The Hills, saying that "the Republican plan provides for another $ 1,200 round of economic impact payments for most Americans."
Grassley stated that they will continue with the payment scheme that was made in April and May, so the HEALS Act guidelines would be the same as the CARES Act, allowing the IRS to follow the previous model.
The last day of the Senate session will be before August 7, which means that Congress will have to agree on a new stimulus bill before the Senate breaks for the August recess which ends on September 8.
So far it is not known how long it will be from the moment the bill is signed till the IRS sends the checks, but based on the time it took in March, the first payments could take two weeks to reach Americans.
What would cause a delay?
In the event that Congress and President Donald Trump do not agree on the content of the next stimulus law and do not meet the August 7 deadline, another month will have to pass before the next session. In this way, both the Senate and the House of Representatives would meet again to propose, debate, and approve the bill.
The good news is that both houses and the president are motivated to pass the new law before the break.
The IRS built the "Get My Payment" tool to track the stimulus check and to sign up to receive the deposit directly, which is the fastest way to receive the direct payment.
Time is running out to claim your first stimulus check
While a second stimulus check is being debated and a bill for a new relief package should be passed in the next weeks, there are still Americans who have not provided the necessary information to receive the first direct payment.
Taxpayers with a Social Security numbers who did not file their 2018 and 2019 taxes because they were not required to do so and have not yet received their first stimulus check have less than three months to contact the Internal Revenue Service (IRS) and provide information.
The IRS has an online tool called no-filers available to people who did not file 2018 and 2019 taxes because they were not required to do so but are eligible for the payment.
Use the Non-Filers: Enter Payment Info Here tool if you are not required to file a federal income tax return for 2019 for any reason including:
a) Your income is less than $12,200
b) You’re married filing jointly and together your income is less than $24,400
c) You have no income
Commissioner Chuck Rettig said Wednesday that his agency is asking all people who have the right to collect direct payment - and have not received it - to provide their information in the IRS online tool before October 15. The service also claims to be trying to get in touch with the homeless or marginalized people to send them the money.
"There is a tremendous population in this country that has no interaction with the government," Rettig said, "marginalized communities need our help."
According to the commissioner, the IRS has sent 160 million payments worth approximately $ 270 billion through the so-called economic impact payment included in the Cares Act, which Congress passed in March.