Theto agree on the substance of a new that could include a are still far from concluding, but the need for more financial relief is still growing.
“This is an emergency of the highest magnitude,” House Speaker Nancy Pelosi has said, noting that there are 20 million jobless workers across the country. According to the Labor Department, initial jobless claims hit 742,000 in the second week of November; that’s 31,000 more claims than the previous week.
The most recent Republican plan, a tightly focused $500 billion bill, doesn’t provide any new stimulus aid for people in dire need, but President-elect Joe Biden’s, which could come into more consideration following the Jan. 20 inauguration, includes a second direct payment for the American people.
If authorized, a second stimulus payment could follow the lead of the first stimulus payment from the spring and be worth up tofor those who , with additional financial assistance for . But until that authorization happens, we won’t know all the eligibility rules, or .
if you’re still waiting on the first stimulus payment, and read more about the potential second stimulus payment below. We recently updated this story.
Here’s why you may get more in the next stimulus check than in the first
If approved as part of an economic rescue bill, a second stimulus check is expected to roughly follow the guidelines used for thepassed in March as part of the CARES Act. It may also include changes from , possibly even the . For most people, the total amount you’re likely to receive is based on your , and .
Here are the scenarios in which you could receive more money from a second payment:
More people qualify as a dependent: The Democratic proposal for the next bill expands the definition of “” to include on your tax returns — such as children over 16 and adults under your care. So your number of dependents could increase.
Child dependents get more money: The most recent White House proposal wouldfor children, but double the payout to $1,000.
Your employment status changed: If you became unemployed this year or your wages dropped, that could, which is used to determine the payment.
You got married: Depending on several variables that include your spouse’s filing status and any new dependents, a change in marital status could result in a larger check.
You now share custody of a child: If you meet specific qualifications, you and the child’s other parent.
A rule change concerning incarcerated people becomes permanent: A federal judge has ruled that. If the ruling stands, these people may be entitled to a second stimulus check.
You’re an “undocumented immigrant”: Democrats propose thatfunds if they pay taxes, that passed the House of Representatives in two forms, but which is not law. If the qualification goes through, it could mean that some people who did not get a check as part of the CARES Act could get a second check. If it works retroactively, individuals may be eligible for both payments. This is contingent, along with the rest of the stimulus check qualifications, on the details of a new law.
Here are some potential scenarios for how the two different approaches could play out for families. You can use ourto get a more specific estimate for your particular situation.
You could get more for your dependents, if the rules change
There’s a good chance that the next stimulus bill will expand the qualifications for dependents one way or another. You canor above. What we’re seeing from two different proposals (neither of them law) is that in one scenario, you could get $500 for dependents of any age. In a different scenario, you could get $1,000 per child dependent — .
If you have a child, see below how that could affect your family. Note there are currently.
Stimulus check calculations with dependents
|Scenario 1||Scenario 2||Scenario 3||Scenario 4|
|Tax filing status||Single||Head of household||Married||Married|
|2018 or 2019 tax AGI||$45,000||$60,000||$160,000||$190,000|
|Estimated total with:|
|1 dependent under 17 ($1,000 total)||$2,200||$2,200||$2,900||$1,400|
|3 dependents under 17 ($3,000 total)||$4,200||$4,200||$4,900||$3,400|
|1 dependent of any age ($500 total)||$1,700||$1,700||$2,400||$900|
|3 dependents of any age ($1,500 total)||$2,700||$2,700||$3,400||$1,900|
The next stimulus payment may actually be smaller
In the first round of stimulus checks, the IRS, for most people, based the amount on their. But some Americans who qualified for a check experienced personal or financial changes after filing that would affect a future payment.
You might get a smaller check if you:
Started a job or received higher pay: A change in your AGI, either because of a wage increase or a change in employment status, could reduce the check’s size.
Have fewer qualified dependents: Congress could keep the restrictive dependent requirements of the CARES Act, which was passed in March, and any dependents you claim could age out of eligibility.
Owe child support: Under the CARES Act, the government.
Owe money to private banks or creditors: Your stimulus money can’t be garnished to pay rent or federal tax, but.
What stimulus payments have to do with your taxes
With the first checks, if your financial situation changed after you filed your 2018 or 2019 tax return, you can claim that additional amount on your 2020 tax return when you file in 2021, the IRS said. You’ll likely need to take an extra step to claim your credit — the IRS will post more details closer to tax season 2020.
Also, with the first round of payments, you won’t be required to pay back a stimulus payment if, based on your 2020 tax returns, you no longer qualify for the amount you received.
Looking for more stimulus check information? Read up on all the. If you’re still waiting for your first , here are , or has fallen through the cracks.