Over the weekend, President Trump signed four actions intended to provide immediate relief to Americans suffering from the economic consequences of COVID-19.
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Included in this new package are as much as $ 400 in Improved Unemployment Benefits for Unemployed Americans, a payroll tax break for those earning less than $ 100,000 a year, extra relief for student loans, and assistance for people in need have to make here as their mortgage payments.
The extra $ 400 in unemployment benefits could be especially useful for those who are still unemployed, as the $ 600 in weekly extra unemployment benefits included in the CARES Act expired more than 10 days ago on July 31st.
However, many Americans are still wondering whether they will receive their next $ 1,200 incentive payment, or whether they will receive another amount instead. Many are also left to guess which version of incentive payments will ultimately make the cut, whether that includes the $ 1,200 payment per individual and $ 500 per dependency suggested in the HEALS Act, or whether each dependent (up to three) is eligible comes for a payment of $ 1,200 as suggested in the HEROES Act.
When do you expect next $ 1,200 incentive payment
Before you can begin the countdown to receiving your next incentive payment, Congress will need to reach a broad agreement on a full incentive package. Negotiations have been stagnant since Monday, August 10, yet both Republicans and Democrats seem to be working to a good half-point between their respective proposals.
One major point of controversy among Republicans and Democrats was a potential expansion of the $ 600 in unemployment benefits that expired last month. Democrats want to see this benefit by the end of 2020, but Republicans have argued that added unemployment benefits will incentivize people to return to work.
While some uncertainty persists, it is still possible that you may receive a second incentive check for $ 1200 (and checks for your dependency) at the end of August. This is predicted on the idea that Congress will reach an agreement this week that will allow President Trump to sign into law.
Keep in mind that the CARES law was passed on March 27, 2020, and the first wave of incentive payments was poured into Americans’ bank accounts on April 13th. However, some payments took longer because many applied for paper checks and some people owed incentive debt not to file taxes each year.
It is reasonable to believe that payments could come faster this time, as the framework did not exist before the CARES Act was already built. For example, the Internal Revenue Service (IRS) notes that many people who opted for a paper check from the government received a debit card instead of the last time they had to make plans for it. We can assume that another round of incentive payments could use the same system that pumped out those debit cards and got them in the mail in no time.
Do I qualify for a second incentive check?
Although no one is sure whether changes will be made in terms of eligibility for incentive payments, both the HEALS Act and the HEROES Act are subject to the same income thresholds included in the CARES Act. Most likely, the same income caps will apply for a second check, although we will have to wait and see.
If thresholds remained the same, individuals could receive a full incentive payment with an income of $ 75,000 or less, while that amount was doubled to $ 150,000 for couples filing joint returns. Meanwhile, heads of household filers can receive a full incentive payment with an income up to $ 112,500.
Note that the last time incentive payments were phased out based on income above these amounts in individuals, couples who file jointly and disqualify household heads for incentive payments once they earn an adjusted gross income (AGI) of $ 99,000, $, respectively. 198,000, and $ 136,500.
The bottom line
Once you have received your first incentive check, you do not need to do anything to receive another payment using the same method. For the first round of incentives, you do not need to take action if you have submitted all your taxes by 2019. If you have not yet filed your taxes for 2019, but you have entered taxes for 2018, the IRS is using your 2018 income to determine your amount of incentive payment as eligible.
If you have little or no income or you have not filed a tax return and have not yet received the first incentive payment, the IRS says you should use their non-filing tool as soon as possible to register for your incentive payment.
If you count the minutes until your next incentive payment arrives, you are certainly not alone. But, like the rest of America, all you can do is make sure you qualify and wait it out.
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