After months of negotiations and proceedings, Congress finally passed another coronavirus relief package totaling $900 billion.
The stimulus measure includes a new round of stimulus checks like the economic impact payments included in the C.A.R.E.S. act, which passed earlier this year. Those payments in the previous relief package were $1,200 per individual and $500 per dependent.
THE NEW PAYMENT
The new stimulus deal includes checks half the size as the ones previous, coming in at $600 per individual. This does still include dependents under the age of 17- meaning that a family of four could receive up to $2,400.
ARE YOU ELIGIBLE?
Again, like the C.A.R.E.S Act, their are income limitations to receiving aid.
Single filers earning less than $75,000 in 2019 will receive the full $600.The single filers will be phased out by 5% of the amount by which their adjusted gross income exceeds the initial threshold and phased out completely at $87,000.
Married filing joint couples earning less than $150,000 in 2019 will receive the full $600. Again, anything above $150,000 will be adjusted by 5% of the amount that the adjusted gross income exceeds the threshold. Married filing joint filers will be phased out completely at $174,000.
One of the more frequent questions that was asked in the first round of payments was: Is my college aged dependent going to be eligible for stimulus checks? So I wanted to clarify this, as many people will be wanting that information for the second round.
The simple answer is no; initially there was chatter of the new bill including payments for adult dependents; however, Congress passed legislation for only dependents under the age of 17. This means if you still claim a dependent that is older than 17 at the year end of 2019 then they will not be eligible for payments.
WHEN TO EXPECT PAYMENTS
The top officials at the Department of Treasury have implied that the payments should be on the way to bank accounts via electronic transfer by next week; if you had direct deposit the last time. Republican Kevin Brady, the top Republican on the House Ways and Means Committee, said that the IRS expects to send direct deposits before December 31. All the rest of the payments by checks and debit cards will be sent between now and January 15 at 10 million per week.