Second round of stimulus checks may come with major changes

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The House of Representatives is set to vote on another stimulus package tomorrow that is being called the HEROES Act. One of the most anticipated and talked about elements of this package is the new round of stimulus checks it contains.

It will provide checks to families and individuals in similar ways as the CARES Act such as allowing individuals to receive $1,200 for their checks and couples up to $2,400, but there may be some huge differences between the first round of stimulus checks and the second.

Below are some of the key ways that the second round of stimulus checks might be different from the first.


Families will get more

The first round of stimulus checks offered an additional $500 for certain dependents that qualified.

But the second round of checks will raise that up to $1,200 per dependent up to a total of three different dependents. This means that a family of five could potentially receive up to $6,000 for their next stimulus check.

It’s also reported that the age requirement of being 16 years and younger will be lifted so you could receive $1,200 for your adult children or for elderly parents living with you. 

These two changes could be absolutely huge for lots of families who are supporting older teenagers or even kids still in college.

I remember at one point in my life when my parents were supporting multiple teenagers as well as their parents who lived with us and something like this could have helped us out tremendously in a tough time.


Child support will not be taken out

Many people who owed more child support than they were due for the first stimulus checks, did not receive a dime from the stimulus package. But with the new round of stimulus payments as drafted, people who owe child support would not have to give up their stimulus checks.

Also, the funds coming from a second round of checks will not be taken to used for back taxes or other debts that are owed to the government which is the same rule that applied for the first round of payments.


No Garnishing

Another major difference between the first round of stimulus checks and the second round is that the second round of stimulus checks would not be subject to garnishments by creditors or debt collectors. They would also not be lost in bankruptcy proceedings.

This would be a huge protection for many people who are worried about having to prioritize things like overdue payments or credit card payments over paying for rent or other necessities. I really hope to see this provision in the next stimulus package.


Donald Trump’s name would be removed

On the first round of stimulus checks that went out, Donald Trump’s name appeared on the paper checks. This was a controversial move as many people saw it as a political stunt aimed at earning more support for the upcoming elections. However, based on language found in the new act, the president’s name would not be allowed to appear on the checks.


Income will be determined differently

The first round of stimulus checks was based your adjusted gross income but the second round of stimulus checks may be based on your modified adjusted gross income.

For a lot of people this will not make a difference but if you receive any amounts that are excluded from taxable income like foreign earned income or income from the US territory this could affect your eligibility.


No Social Security number will be needed

In order to receive a check under the first round of stimulus checks, you were required to have a Social Security number. However, now you will only need a TIN number also known as a taxpayer identification number.

This will allow certain individuals who are not US citizens and who cannot obtain Social Security numbers to receive stimulus payments. Nonresident aliens would still not qualify for a second stimulus check.


First round payment changes?

According to Kiplinger, some of the CARES Act provisions for first round stimulus checks could be modified including the following:

  • You would get the extra $500 payment for each dependent, rather than only for children below age 17;
  • You could get a first-round payment without a Social Security number if you have a Taxpayer Identification Number;
  • First-round payments wouldn’t be reduced or offset for past-due child support; and
  • First-round payments wouldn’t be subject to garnishment.

So basically they would be changing the eligibility requirements retroactively and people could potentially receive a double stimulus check the second time around. Personally, this seems like one of the provisions that will not survive this bill but I definitely could be wrong.


Final word

It would not surprise me to see all of these things pass through the US House of Representatives and get approved on Friday. But things will be very different when this bill gets presented to the Senate and needs to be signed off by the president.

I mean, do you really see the president agreeing to not include his name in the checks? 

Hopefully, small details like that can be compromised in order to get the most important part of this package sent out which is the checks themselves.

There still is a pretty good amount of uncertainty out there when it comes to whether or not people think the new checks will be approved.

I have been pretty pessimistic based on things that I have heard but I still definitely think it is possible for Republicans to agree to one more round of funding, especially since Democrats did not propose an extreme stimulus package with payments lasting for six to 12 months. 

H/T

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7 comments

  1. The economy really need the $2000 @ month each family and dependents to survive at least until the economy gets back on its feet. This virus is still out there. The government’s good is to take care the people. And Pelosi and others are trying to do that and it is appropriated.

    1. They pay us 7dollars an hour…thx unfackin real…food up 40 percent….Congress needs the 1200 a month…that doesn’t make their lavish car payments which are paid by taxpayers…. pathetic

  2. I hope something gets passed that adult dependents would get some stimulus money too. I am claimed as a dependent but I live alone . I could sure use this help.

    1. I am on SSI and am not seen the first check yet my daughter in law has six children and also has not yet received anything from the stimolus money it’s getting to be a broken record with the IRS SSI people was told one thing and the check dates kept getting changed and we’re told to just wait for our money that never came then we’re told by the fifteenth and when it doesn’t show up on our cards or in our direct deposit account do we call the IRS or the social security office and thay say we should have gotten our check well it’s our direct deposit of our social security checks has been going to our bank accounts for years now what excusses do you people at. the IRS have what is the problem 😡
      Now

  3. I am a nurse in Tn and my partner and I deal with a very greedy co-parent of two young girls. When would we know if the retroactive order was passed? This would aide our family greatly as my hours have been cut back tremendously due to covid and she refused to give us the stimulus money that was automatically awarded to her for back child support. I even went as far as reaching out to her and explaining how we needed the money during this time of crisis as we also have a 3 year old daughter together but she sees our aide money as money owed to herself. My partner has only following behind due to an outdated child support system that has taking his relationship with his other two children away and given our family nothing but hardships.

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