While many Americans are waiting to receive their stimulus check from the government, others are already wondering whether another payment could be on the way. There have indeed been discussions about the government possibly sending out another round of payments. However, nothing is confirmed just yet. In the meantime, here is everything we know about the possibility of a second round of stimulus checks.
In late March, the White House and Congress agreed to a $2 trillion stimulus package. The package not only entailed aid to many businesses around the country, but it also provided for checks to eligible Americans. Eligible individuals will receive $1,200 or $2,400 for couples who file a joint tax return. Additionally, if you claim a child as a dependent, you can receive up to $500 for each child. Considering that some Americans have already received their stimulus checks, it's time to look towards the future. Is a second round of checks on the way?
There has been talk, and even action from House Democrats in Congress, regarding a possible second round of stimulus checks being sent out. Nothing is set in stone just yet, but it's entirely possible that the government could find another way to help give a jolt to the economy and a boost to American taxpayers amidst this crisis.
Details on the First Payment
As previously mentioned, the White House and Congress reached their agreement over the $2 trillion stimulus package in late March. In mid-April, checks were being sent out to eligible Americans. Even though many around the country have not yet received their payment, rest assured that you will receive it in due course.prevnext
When Will You Receive This Payment?
If you're eager to find out when you might receive that first payment, the IRS has implemented a useful tool on their website so that you can look to see when your check is on the way. The IRS recently launched their "Get My Payment" tool (which you can check out on IRS.gov), that allows Americans to track the status of their stimulus payment on their website.prevnext
Is A Second Payment On The Way?
There has been no official confirmation regarding a second round of stimulus checks. Although, ever since this first round of payments was sent out, there has been discussion about whether more could be on the way. According to Forbes, which published a report on the subject on April 17, it's entirely possible that a second stimulus check is on the way. In fact, the publication even reported that there are some lawmakers in Congress who have been advocating for additional packages in order to help Americans get through this difficult time.prevnext
A Newly Proposed Plan
In mid-April, Rep. Tim Ryan and Rep. Ro Khanna introduced the Emergency Money for the People Act. Their proposal would give eligible Americans $2,000 per month over the course of six months (or until this health crisis has subsided).
"The economic impact of this virus is unprecedented for our country. As millions of Americans file for unemployment week over week, we have to work quickly to patch the dam – and that means putting cash in the hands of hard-working families," Ryan said in a press release. "Many Ohioans are just receiving – or about to receive – the first cash payment we passed in the CARES Act. Now it's time for Congress to get to work on the next step to provide relief for those who have been hardest hit in this pandemic."prevnext
Details On The Emergency Money for the People Act
Rep. Ryan and Rep. Khanna's proposal would indeed grant even more aid to Americans who are trying to deal with this unprecedented crisis. However, it should be noted that it is unclear exactly what this act would look like if it were implemented as it has not made its way through the entire legislative process.prevnext
What Trump Has Said
In early April, President Donald Trump did hint at the possibility of sending out another round of stimulus checks. But, more recently, on Tuesday, he shared that he liked the "idea of payroll tax cuts," seemingly in lieu of more stimulus checks. What exactly does this mean?prevnext
A Payroll Tax Cut?
A payroll tax cut could have a major effect on both Medicare and Social Security, both of which rely on payroll taxes for funding. Both Medicare and Social Security are also reportedly facing funding shortfalls amidst this pandemic, meaning that a payroll tax cut could have an even greater effect on the organizations. At the moment, employees and employers are subject to a 6.2 percent tax for Social Security and 1.45 percent for Medicare. For self-employed individuals, they pay these taxes on their own, 12.4 percent for Social Security and 2.9 percent for Medicare. It is unclear how the government would be able to fund Social Security and Medicare if a payroll tax cut is indeed implemented.prev