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We are currently awaiting the results of the vote on Monday that will give us a better picture of what to expect with the second round of stimulus checks.
The most likely outcome seems to be that $600 direct payments will be going out, likely beginning in early January.
But there is still the possibility that checks as high as $2,000 could be going out as that is the preferred amount for President Trump and a lot of Democrats.
We’ll see what happens next week with the votes but there are already talks about a third stimulus check with the Biden administration that is expected to take over in January.
Before Trump ever expressed his disdain for the $600 stimulus checks and the $900 billion proposal, President-elect Joe Biden had already committed to a third stimulus check for 2021.
“This bill is just the first step, a down payment, in addressing the crisis — crises, more than one — that we’re in,” Biden.
When questioned if a future package would contain a third stimulus check Biden said, “That’s a negotiating issue… But it will, yes, it will.”
What’s interesting is that a third stimulus check may not be needed if lawmakers are able to pass $2,000 payments for the second checks.
Based on comments we have heard, it seems extremely likely that there will be at least one additional stimulus package that is sent out after inauguration day.
But if the second round of checks is high enough, it’s possible that that package might focus on other benefits like aid to local and state governments and perhaps extensions of current benefits related to unemployment, student loans, coronavirus vaccines, etc.
This is one reason why I would not worry too much about $600 stimulus checks — it’s likely that if $600 checks go out now, we will see more go out later.
When it comes to checks going out next year, there are some IRS complications that could create some issues.
For that reason, some speculate that a third round of stimulus checks might be extra targeted to help people who need the aid the most or who were left out of the second round due to the IRS’ formula.
Of course, the other major factor is what happens with the Georgia runoff elections in the first week of January.
If Democrats were to take control of the Senate then that would essentially open up the floodgates for more stimulus relief and it would not be surprising to see if the stimulus checks go out.
If Republicans win the Senate, which I believe is still expected, then we could see another protracted battle over the contents of a stimulus relief package and it’s possible we might not even see another package to get passed.
It’s going to be an interesting winter.
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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.