WHAT YOU NEED TO KNOW:
- Around millions of Americans will not be eligible for the next $600 check payment under the latest 900 billion stimulus bill.
- The president and the Democratic legislators’ effort to increase the check to $2,000 per head was unsuccessful in the Senate.
- The Tax Foundation reports that almost every individual in the bottom 80% of the income range will receive check payment.
The second batch of coronavirus checks payments is now being transferred to bank accounts after President Donald Trump approved the $900 billion stimulus bill the previous week. The current relief legislation will only be a slight help to the 60% of Americans who faced financial distress amidst the COVID-19 pandemic. Millions of citizens, though, maybe upset knowing that they are not eligible for the payment.
The direct payment, amounting to $600 for every qualified adult and kid will only be half compared to the $1,200 checks distributed early this year. The $600 per individual aid is part of the relief bill approved by Congress in December and authorized by Trump on late December 27.
Attempts by the president and Democratic lawmakers to increase the check to $2,000 per individual were hindered following the blocking by Senate Majority Leader Mitch McConnell to move for a vote on the bill.
In creating the current stimulus package, legislators have tried to resolve numerous concerns that limited the payment of the initial round of aids this year. Kids below 17 years of age will also get the same $600 check, higher than the $500 in the initial batch.
However, the income restrictions in the latest stimulus aid are marginally dissimilar from those specified in the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which will exclude more middle-class households from receiving the aid. Some clusters that were disregarded in the initial round of payments will miss again the second batch.
The $900 billion relief bill gives $600 to each qualified kid in a family defined under the Child Tax Credit for IRS tax code. That means only those ages 16 years below will be eligible for the payment.
But since the IRS’s basis will be the individual’s 2019 tax returns for their eligibility, those who have youngsters who turned 17 in the second half of 2020, following due tax returns to IRS may still be qualified.
According to the Tax Foundation, adult dependents will not receive the $600 check payments. That indicates that several college students won’t get relief aid as well.
Older grownups, from elders to disabled people, who are declared as dependents are also left out on the aid.
In the latest iteration of the bill, single people that have an income of $87,000 won’t be eligible, unlike the limit of $99,000 for in the CARES Act.
Couples who are married making more than $174,000 won’t get a check, a decrease on the $198,000 in the first bill.
Generally, nearly every person in the lowermost 80% of the income bracket in the U.S. will get a check, as estimated by the Tax Foundation.
Source: CBS News