The IRS in consideration could still send and grant a Second Stimulus Check of about $1,200 in 2020. But there is a big question on how it will be authorized. The original Cares Act can offer clues on how the second round of payment could look like. Though only a few weeks remain until the next election on November 3rd, a new economic relief package or an executive order could yield the second stimulus check this year. If approved, the second round of packages of worth as much as $1,200 could be granted per adults and perhaps more for families who seem eligible or meet the eligibility requirements.
The first Stimulus Check payment can offer a basic template on how a second potential round of payment could function, including what to do if your dependents were left out of that first package. In case you did not get the first payment, then you should try locating it with the IRS tracking tool or you can file a missing payment report.
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Will citizens be taxed on their stimulus check? What are your rights?
Just as the rule was applied to the first stimulus check package which was issued in March, it could serve as a model for the second Stimulus Check round of payment.
- Feel free to spend it: After you have received your stimulus money, you can spend it just the way you prefer to. The money is transferable to your own account if received on a prepaid debit card.
- The stimulus check payment is not taxable: Citizens won’t require to pay taxes next year on a stimulus payment they receive from the IRS in 2020. IRS does not consider if income and payment you get in 2020 will not reduce your refund or increase the amount a citizen owe when they file their 2020 tax return next year. Citizens won’t also have to repay anything if they qualify for a lower amount in 2021.
- Overdue child support: Considering both the Cares Act and HEALS Act, citizens will not receive a check if they owe child support. Under the House of Representative Heroes Act, which the Senate didn’t take up, citizens would be eligible for a payment if you owe support.
- Overdue debts: Under some reasons with the first stimulus check, banks and private creditors could seize your payment for the outstanding debts. The second stimulus check payment proposal would in most cases prevent creditors and banks from getting hold to the payment in order to pay debts. Also, citizens are not required to hand the check over to companies or facilities such as nursing homes and landlords to cover their expenses.
- In some cases, the package does not need to be returned: IRS has said that citizens who died before receipt of the payment, nonresidents alien and people who are incarcerated do not qualify for a check. The payments need to be returned if received said by the IRS.
How will your payment be received: Direct deposit or by mail?
About 75% of the first round of payment went out as direct deposits to bank accounts reported by the IRS. From the 1589 million payments made by the month of June, about 120 million were issued as direct deposits, and 35 million were sent be check and 4 million were sent in the form of a prepaid debit card. If a citizen has a direct deposit set up with the government to receive your tax returns or other benefits, the IRS will use that information to send the second stimulus check payment. You will be on the advantage of receiving your payment first under the direct deposit method of payment.
For more information, you can visit CNET.
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