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July 29, 2020 Update:
If you are curious to see what your second stimulus check payout would be based on the recent proposal by the Republicans in the Senate, there is a new calculator tool that you can use.
Based on the proposal that we have seen so far, most people will probably see the same payouts but the big difference is that dependents are not limited to those 17 or under.
This means that many high school juniors and seniors will be eligible for stimulus checks although the payment will not go directly to them. It also means that if you were taking care of elderly individuals, those should be factored into your next round of payments.
Keep in mind that this is not the final eligibility criteria. It’s very possible that Democrats could push back and try to expand the eligibility even more although I would not necessarily count on it getting through. We shall see, though.
Also, remember that if you are sent more money in your stimulus check than you are entitled to, you are allowed to keep those funds since it is considered a clerical error on behalf of the IRS.
May 29, 2020 original article:
If the second round of stimulus checks is passed, the eligibility will be different for this round. More people will be able to receive checks and certain types of individuals will receive more money, especially those wit dependents. If you want to find out what your expected payment would look like the second time around, check out the tool below.
New stimulus program benefits
Before diving right into the tool, keep in mind that there may be additional sources of revenue/savings included in this next stimulus package.
Hazard pay for frontline workers
$200 billion will be used to “ensure that essential workers who have risked their lives working during the pandemic receive hazard pay.”
With this hazard pay for frontline workers, employers will be able to apply for a $13 per hour premium on top of the employee’s normal salary, up to $10,000 per worker and $5,000 for high paid workers (people who make over $200,000 a year).
That could be a significant boost for many essential workers.
You might be wondering who qualifies as “essential” under this program. Well, we may have guidance. The U.S. Department of Homeland Security provided an advisory that outlines 17 categories of essential workers:
- Healthcare / Public Health
- Law Enforcement, Public Safety, and Other First Responders
- Food and Agriculture
- Water and Wastewater
- Transportation and Logistics
- Public Workers and Infrastructure Support Services
- Communication and Information Technology
- Other Community or Government-Based Operations and Essential Functions
- Critical Manufacturing
- Hazardous Materials
- Financial Services
- Defense Industrial Base
- Commercial Facilities
- Residential/Shelter Facilities and Services
- Hygiene Products and Services
So it seems like a ton of people could potentially qualify for this increased pay. In fact, some are worried that it would be too broad and run out of money like the PPP.
If you are on unemployment, your unemployment benefits with the $600 boost could be extended until January 2021. This extension seems like it could be needed considering that Kevin Hassett, the senior economic adviser to President Donald Trump, stated the unemployment rate could reach 20% by June.
Student loan benefits
The Act will also extend the suspension of student loans another year.
That in and of itself could be huge savings for people with large student loan payments. Keep in mind that with the suspension, interest does not continue to accrue. There will also be up to $10,000 in debt relief for certain types of student loan borrowers who are distressed.
Renter and mortgage relief
There is a substantial amount of funds dedicated to help out low income homeowners and renters. The new law would also prohibit evictions or foreclosures for non-payment for up to one year.
So those are some of the additional benefits that the package could include.
I do not think all of those will be passed to be honest, though.
Based on what I’ve seen it does seem like there is a lot of bi-partisan interest in hazard pay for frontline workers so I could see that passing, though I do worry about it running out of money.
The extension of unemployment seems like it could face an uphill battle because many people are worried that it’s not providing the correct incentive for people to get back to work.
It seems likely that student loans will have payments suspended but the forgiveness aspect of that does not seem directly related to stimulating the economy in quick fashion so I have my doubts.
And finally there is the stimulus checks.
More interest has been expressed by Republicans and the White House over the past couple of weeks.
One of the most encouraging signals is now coming from President Trump who he stated:
“I think there will be a second payment to help Americans move on. We will give them money towards the end of the outbreak. Right now we are focusing on reopening the country.”
So I am starting to feel good about a second round. However, there are still reservations including some with Democrats in the Senate.
So when using the calculator below, you still can’t assume 100% that you will receive another check. And if that check comes, it’s also possible that it could be a few months away from being issued. So just keep those things in mind.
Stimulus check calculator
But here is the stimulus check calculator.
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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. Since 2014, 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.