Stimulus check facts you should know now that a second payment is once again in the mix

Now that a bipartisan group of senators has released the framework for its $908 billion proposal for economic relief, the pressure is on to approve a new bill before the end of the year. While the proposal doesn’t include a second stimulus check for eligible Americans right now, the end result could change, as a growing group in Washington is calling for another direct payment this year, either as a standalone bill or as part of a cohesive package. 

If no second payment is likely to come this year, then when could you expect your next stimulus check to arrive, and would you get your payment before or after your neighbors? How exactly will the IRS decide how much of that $1,200 you get, and how could the stimulus check qualifications change to bring you even more money — or perhaps less cash — the next time around? Do you know the ways you could be disqualified, or how to claim your first stimulus check now that the IRS deadline has passed? 

We break down the important information below so you know what to expect before another payment arrives. (We update this story often.)

A second stimulus check is gaining support for 2020

There’s strong momentum within Congress for another direct payment to individuals and families. Although the $908 billion “emergency” proposal that could come up for a vote before the end of the year does not include a stimulus check, counter suggestions range from approving a $600 check now for eligible people, to a standalone bill for $1,200 per qualified adult and $500 per child dependent, all the way to no check now and a stimulus payment in 2021.

Your check could arrive earlier or later, depending on which payment group you’re in

Eligible Americans got the first stimulus money at different times, based on five de facto priority groups. For example, people who have set up direct deposit with the IRS — an electronic transfer of funds into their bank account — are expected to get their payment weeks before those who receive a paper check or prepaid EIP card in the mail. Here’s a more detailed definition of the payment groups.

Your next check may be a different amount than the last — here’s why

If the eligibility requirements change with a second check, you and your family could find yourself with more money in your payment or less. For example, a new rule could potentially get you a bigger sum. But there may have also been changes to your life circumstances — such as a birth or death in the family, starting a new job or becoming unemployed — that might also make your second stimulus check smaller. Here’s how you can estimate how much you’d probably get. And here’s how the IRS determines how much money you get.

After a stimulus check is approved, the IRS could send it out faster this time

With the first check, the IRS was tasked to create an online registration and payment tracking tool, as well as a payment schedule for more than 160 million people. It took 19 days before the first wave of payments was delivered. 

The hope is that the process could go smoother and therefore faster with a second check. The tracking tool is already up and running, the system is in place and it’s probable that the majority of people who qualified for a first check would 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 — Biden’s Jan. 20 inauguration. Here’s what you can do now to help speed up the delivery of your personal check.

Some people won’t qualify for another payment

With the first round of checks, Congress set income limits based on your adjusted gross income that set a line separating who did and didn’t qualify for a stimulus check. But that’s just the beginning. Your status as a dependent or adult, and your citizenship status are among the factors that also helped decide if you got all or some of the first check — and those things will likely also affect the second. Read more about stimulus payment qualifications here.

If your first check never arrived, you can still claim it

Guess what? The IRS might still owe you money from the first stimulus check payout. It may be that some money was left out for child dependents, or that an interpretation of a rule changed (this really happened). Or it could be that you fell through the cracks with your personal situation, that you didn’t think you qualified but you actually do and just need to take an extra step, or that some other error kept you from getting the total amount you were entitled to. Since the Nov. 21 deadline to file your claim has passed, you’ll now need to wait until tax season in 2021 to register for a payment from the IRS. Stay tuned for more information as we get closer.

This formula helps determine the size of your stimulus check

Predicting what your payment could end up being isn’t straightforward. The IRS used a formula to determine how much stimulus money you got for the first check. Something similar for a second payment would determine 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 calculation starts with your household’s total adjusted gross income, adds on the money allotted to qualifying dependents and then deducts from the total based on your income bracket (as defined by the CARES Act). 

You don’t have to file your taxes to get a stimulus check

While taxes and stimulus checks are tied together, you don’t need to have filed a tax return to qualify for a check. If you’re over age 65, for example, and receive Supplemental Security Income or Social Security Disability Insurance, you could still qualify for a stimulus check under the CARES Act. You might need to take an extra step to request your payment (you had until Nov. 21 for the first batch) to get your check.

Your 2020 stimulus payment isn’t income and won’t be taxed next year

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.

Rules and exceptions will help determine who gets a check

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 because there are many fringe cases.

For example:

Certain issues could delay your check, such as if you recently moved.

Your stimulus money can be taken away — here’s who can seize it

In most cases, your check is yours to spend or save how you want and it isn’t taxable. But there are a few situations where the federal government or a debt collector can take all or part of your check to cover a debt, such as if you owe child support.

For more information about stimulus payments, you can check in on what’s happening with stimulus negotiations right now, find out what Biden plans for a stimulus bill and see which federal benefits expire at the end of the year.