After President Donald Trump finally signed the $900 billion coronavirus economic relief package on Dec. 27, Americans began receiving the economic impact payment, or stimulus check, deposited in their bank accounts from the IRS and Treasury Department. It was only $600, far less than the $2,000 called for by Trump. The Democratic-led House of Representatives quickly passed a bill on Monday to send Americans $2,000, but Senate Majority Leader Mitch McConnell quashed it on Friday. Aside from being half the size of the first coronavirus stimulus check, there are few details that deviate from the CARES Act EIP sent out last spring.
Almost every adult American who pays taxes was eligible for the $600 payment, as well as each dependent the taxpayer supports. This means a family of four could receive a maximum of $2,400, The Oklahoman points out. Americans whose adjusted gross income for 2019 was over $75,000 will not be eligible for the full payment, just as with the CARES Act EIP. A head of household who earned over $112,500 and a married couple filing jointly who earned $150,000 or more are also ineligible. The AARP estimates that individuals who earn $87,000 or more, couples earning over $174,000, and heads of households who wean over $124,000 might not receive any payment at all.
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The new EIP program also fixes one of the major flaws in the CARES Act’s program. During the first round, couples who filed taxes jointly were not eligible for a payment if one spouse did not have a Social Security number. This time, a couple in that situation will still receive a payment if they meet the other eligibility requirements. A child will also be eligible for payment even if one of their parents does not have a Social Security number.
Just as in the first time, Americans who previously provided the IRS with banking information will receive the payment as a direct deposit. Some Americans receiving their payments this way may have already got theirs. If the IRS does not have any banking information for a taxpayer, the payments will be sent as a physical paper check or a debit card in the mail. The debit card form of payment was introduced late during the first check payment, and more information on how to use the card is available at EIPCard.com.
In May 2020, the IRS explained that the stimulus payments are not considered taxable income and Americans will not owe tax on it. “The payment will not reduce a taxpayer’s refund or increase the amount they owe when they file their 2020 tax return next year,” the IRS explained at the time. “A payment also will not affect income for purposes of determining eligibility for federal government assistance or benefit programs.”
Social Security recipients, Supplemental Security Income recipients, Railroad Retirement Board beneficiaries, and Veterans Administration beneficiaries had to wait months to receive their stimulus checks the first time. Those groups do not have to file tax returns. Thankfully, this time, they will not have to wait so long, Sen. Maggie Hassan told CBS News. “I am particularly glad that the final text of the relief package includes my bipartisan bill to ensure that recipients of Social Security, Supplemental Security Income and certain VA benefits will receive these payments automatically,” Hassan explained.
