It’s official. On Sunday, Congress has sealed a deal on a new COVID-19 economic relief package to the tune of nearly $1 trillion.
The agreement includes a second round of stimulus payments and will provide financial assistance to those that are unemployed and businesses, schools, and more that are affected by the coronavirus pandemic.
More specifically, the relief package will grant stimulus checks of up to $600 per person, which could be reduced based on a person’s income.
According to CNBC, the new relief package could mean a family of four would receive up to $2,400.
Exact income criteria and timing for the second stimulus package, as well as other details of the plan, have yet to be released as of noon on Dec. 21. (This article will be updated when the text becomes available.)
Just an update: Still no text for the Covid/funding package.
— Jake Sherman (@JakeSherman) December 21, 2020
The expected per-person amount is half of the $1,200 many Americans received during the first round of stimulus checks in March.
The IRS sent $1,200 checks to millions of Americans as part of a stimulus relief package to help people impacted by the coronavirus pandemic. Stimulus checks were sent to people based on federal tax returns from 2018 or 2019.
Multiple reports indicate that the people who will receive the first direct payments for the second stimulus package are individuals whose direct payment information is already on file with the IRS. The first round of checks that were sent out in March were deposited directly into taxpayers’ bank accounts.
According to CNN, experts are expecting checks to take at least two weeks before the Treasury can deposit cash directly into individuals’ bank accounts.
“The timing could be more challenging this time, but the IRS could likely begin to get the money out in January,” Urban-Brookings Tax Policy Center spokesperson Howard Gleckman said.
If you received the first stimulus check, that does not mean you automatically qualify for the second. If you made more money in 2020 than in previous years, your adjusted gross income could push you out of the income limits, which again, have not yet been made public.
Similar to the first round of stimulus checks, payments are expected to start phasing out for individuals who earn more than $75,000 annually.
CNET made a chart that shows how much money you could potentially receive based on the $600 stimulus check proposal:
Supplemental jobless benefits in the amount of $300 per week are also expected for a term of up to 10 weeks – shorter than the 16 weeks in which jobless benefits were given to individuals to the tune of $600 per week under the CARES act earlier this year.
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