More than likely, we will not know anything regarding the passage of a second round of stimulus checks until after July 4 of this summer. (And probably not until the end of July.)
But as of right now, we know the requirements for eligibility for a second round of stimulus checks that have been proposed and passed by the House of Representatives.
So if you are wondering whether or not you will be eligible for the next round of checks if and when they are approved, here are the eligibility requirements:
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.
The income brackets will be the same as what we saw with the first round of stimulus checks and your payout amount depends on how you are filing. Here’s how it will play out:
- Married filing jointly: 100% eligibility up to $150,000, then reduced by 5% up to $198,000.
- Heads of household: 100% eligibility up to $112,500, then reduced by 5% up to $136,500.
- Single: 100% eligibility up to $75,000, then reduced by 5% up to $99,000.
Families will get more
The second round of checks will raise the $500 allowance for dependents up to $1,200 per dependent up to a total of three different dependents.
So one family could receive up to $6,000 for their next stimulus check, a pretty huge leap from the first round.
The age requirement of 16 years and younger will be lifted so you could receive $1,200 for your adult children in college, which again is a major change.
These are probably the two biggest enhancements from the first round of checks that will affect the most people.
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.
Child support not be taken out
With the way the new round of stimulus payments is drafted, people who owe child support would not have to surrender their stimulus checks.
No SSN needed
With the HEROES Act, you will only need a TIN number also known as a taxpayer identification number, to be eligible.
This will allow certain individuals who are not US citizens and who cannot obtain Social Security numbers to receive stimulus payments.
If the second round of stimulus checks passes, they would likely start to go out in August at the very earliest but it very well could be until September if negotiations don’t close until early August.
The current version of the HEROES Act states that payments will be issued no later than December 31, 2020 so we my guess is that we would see payments rolling out in early to mid fall.
These eligibility requirements are more expensive than the first round of stimulus checks which is why the proposed cost for the second round is significantly higher.
I’m not extremely optimistic that all of these increased eligibility standards will survive through the Senate but we will see how it all shakes out soon.
Daniel Gillaspia is the Founder of UponArriving.com and creator of the credit card app, WalletFlo. He is a former attorney turned full-time credit card rewards/travel expert and has earned and redeemed millions of miles to travel the globe. His content has been featured in major publications such as National Geographic, Smithsonian Magazine, Forbes, CNBC, US News, and Business Insider. Find his full bio here.