Stimulus check facts: Eligibility, payment amount, IRS schedule to send a second relief payment

What’s happening with the negotiations over the next stimulus bill, and are we sure it will include a second stimulus check? How long will you have to wait to get another payment, and will the qualifications be different this time? What do you do if your first check never came or you think the IRS could owe you a catch-up payment? 

We’ll tell you everything we need to know about key stimulus payment facts, including the relationship between your checks and your taxes, how to IRS decides how much money you can receive, and if a more nuanced rule could apply to you. We update this story often.

1. There’s slim hope a stimulus bill will happen before Election Day

The final details on the stimulus bill may not be completed before Nov. 3, but House Democrats are hopeful that they can still move quickly.

“We want to do it as soon as possible,” said House Speaker Nancy Pelosi Sunday on CNN’s State of the Union. “I thought the president did too. And that is part of the leverage each side, that we both wanted an agreement. Why would we even be talking to each other if we didn’t believe we could reach an agreement?”

Pelosi acknowledged that it’s not just up to her side. “It could happen this week in the House, but that’s up to [Senate Majority Leader Mitch McConnell] as to whether it would happen in the Senate and go to the President’s desk,” she added.

With the election just over a week away, it’s less likely that a bill will pass in the coming weeks, but the situation could change on a dime. If a vote does happen before the election, it would give stimulus checks and other aid a chance to be delivered by the end of 2020. Otherwise, the discussion may not be picked up again until January at the latest, depending on the election results. Here are the latest details.

2. The IRS might owe these people a catch-up payment

If you’re still waiting for your first stimulus payment, there are several ways to hunt it down. As many as 9 million people were estimated to be eligible for a first check but didn’t receive it because they needed to register with the IRS — an extra step most people didn’t have to take. The deadline is Nov. 21 and we show you how to register. 

Some people with dependents received only a partial payment and are still owed money. The deadline to get that in 2020 passed Sept. 30, but we explain how you can claim it with next year’s taxes.

And if you share custody of a child but you’re not married, you may each be able to receive $500 per child dependent. 

3. Stimulus payment calculations could use this formula

You may be interested to know that the IRS has a formula for working out how much stimulus money you could get, and that’s what determines whether you receive the full amount, a partial payment or far more than $1,200 if you have kids.

It also explains how you might still be able to get some stimulus money, even if your family’s yearly income exceeds the limit set out by the CARES Act in March. The calculations start with your household’s total adjusted gross income, add on the money allotted to qualifying dependents, and then start deducting from the total, based on your income bracket (as defined by the CARES Act). 

You can calculate how much you could get in a stimulus check now, as well as for a second check. 

4. People who are incarcerated have a chance to get stimulus money

A judge in California ruled that imprisonment should not disqualify someone from receiving a stimulus check and ordered the IRS to release payments to people who would otherwise meet the qualifications. The ruling found that the CARES Act did not specifically or legally bar this group of people from getting checks and that the IRS’ interpretation is incorrect. If this ruling holds, up to 2 million people or their families could still receive payments for those individuals.

5. People used the first stimulus checks in these ways

A new survey this week on how people in the US used their first stimulus check shed light on the economic reality of the coronavirus’ effects. The survey from the Federal Reserve Bank of New York polled 1,300 households between June and August. The study found that of the 89% who reported receiving a stimulus check ($2,400 median total):

• 29% spent the stimulus money (on essentials, nonessentials and donations).
• 36.4% saved their stimulus money.
• 34.5% used it to pay down debt.

Here’s how respondents would spend a second check of $1,500, and how people used enhanced unemployment payments.

6. You could be in one of 5 different payment groups

Eligible Americans got the first stimulus payment at different times, often because of the way they got paid, and a second payment would be similar. For example, people who have set up direct deposit — an electronic transfer of funds into their bank account — with the IRS could get their checks weeks before those who receive a paper check or prepaid EIP card in the mail. We identified five priority groups based on the first stimulus checks. 

7. Your second payment may possibly arrive sooner than the first

With the first check, the IRS learned how to mobilize and deliver stimulus money, and worked out many of the pain points in the process. If a second check is approved, it’s likely the agency could speed up the process of sending out the first set of payments. The tracking tool is already up and running, the system is in place and it’s likely that the majority of people who qualified for a first check will also receive another. 

The timeline is constantly changing, but we’ve mapped out potential dates a check could be sent if approved before — or after — the election.

8. New eligibility changes could allot more money for your dependents

It’s likely that a second stimulus check would largely follow the same rules and guidelines as the first. But the qualifications for who could get money are subject to change, in ways that could benefit your family. One proposed bill redefines who counts as a qualifying dependent, and would give your family $500 for each dependent you claim on your taxes, regardless of age. 

The current $1.8 trillion proposal from the White House offers a $1,000 payment per child dependent. We’ve explained how some families might benefit more from one bill than the other in terms of a total payment. (Here’s how young people could qualify for their own $1,200 check.)

9. There are many confusing exceptions and rules

If a second stimulus check is approved, there will be lots of small details, rules and exceptions that may be confusing. While some situations will be easy to understand, others concerning you and your dependents might make it unclear if you’re eligible and how much money you might receive. There are many fringe cases.

For example:

10. You won’t have to pay taxes on any stimulus money

The IRS doesn’t consider stimulus money to be income. That means a payment you get this year won’t reduce your refund in 2021 or increase the amount you owe when you file your 2020 tax return. You also won’t have to repay part of your stimulus check if you qualify for a lower amount in 2021. The IRS said if you didn’t receive everything you were owed this year, you can claim it as a credit on your 2020 federal income tax return by filing in 2021. Here’s everything to know about stimulus checks and taxes.

There’s much more to know about other government payments during the pandemic, including a possible interest check from the IRS and where the $300 federal unemployment benefit is now.