Most Americans have already received their first COVID-19 stimulus check and are closely watching the negotiations in Washington to see when or if there will be a second on the way. While far from true, another payment will be made, there is some good news for those eagerly waiting for more funds in the midst of the 2020 recession: if it does come, the average size of the second check for eligible taxpayers could be 25.5% more higher than the first.
The average size of the second check could increase by more than $ 400
Although lawmakers remain divided over the possibility of a second stimulus payment, the US House of Representatives. USA It has already passed a bill to provide one. It is called the Omnibus Health Solutions and Economic Recovery Emergency Solutions Act, or the HEROES Act.
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The HEROES Act not only provides another COVID-19 check, but also increases the amount millions of Americans would receive.
In fact, according to the American Enterprise Institute, the average payment for eligible taxpayers under the HEROES Act would be $ 2,170. In comparison, the average payment Americans already received on their first COVID-19 payment under the Coronavirus Economic Aid, Relief, and Security Act (CARES Act) was just $ 1,729. That is more than a 25% increase.
Why would Americans do it better the second time?
To be clear, not everyone who receives a second stimulus check would get more money, although the average check size would increase. The key reason the amount is increasing is because the HEROES Act offers more money for dependents than the CARES Act and expands those who count as dependents.
In the first round of payments, qualified dependents were worth $ 500 in stimulus money. Under the HEROES Act, the dependent payment would increase to $ 1,200, although the number of dependents would be limited to three per household. That makes the maximum payment amount is $ 6,000 per household under the HEROES Act.
Qualified dependents for the first payment only included children under the age of 17, while the HEROES Act counts dependents, including children 17 and older, as well as others, as elderly relatives. Up to 26 million more dependents would be eligible for stimulus funds in payment No. 2, so it is not surprising that the average size of the check increases.
Who does not receive extra money under the HEROES Act?
Unfortunately, people without dependents would get the same amount on their second stimulus check as on their first. This includes millions of retirees receiving Social Security benefits who do not have children they are caring for.
The HEROES Act also maintained the same income limits as the CARES Act, so payments begin to gradually decrease by $ 5 for every $ 100 over $ 75,000 for singles, $ 112,500 for married couples, and $ 150,000 for heads of household. . Those who earn too much money to qualify for a payment would not receive the help of the second check.
Will you see these higher checks anytime soon?
Although Republican senators disagree with the HEROES Act, there is some bipartisan support for a second stimulus bill. Engagement legislation may broaden definition of dependent and They include more money for dependents, especially since the first payments were too small to provide significant help to many American families.
Negotiations are ongoing, so if you support higher controls for those who are struggling, it is a good idea to contact your representatives and let them know as soon as possible. And since it is still not clear if you will get additional stimulus funds, let alone a larger check, be sure to use the first wisely if it has not yet been spent.
