The Checks You'll (Probably) Get With the New Stimulus

• Author: William Asher
• Posted: 2024-08-16

As of this writing, the United States Senate appears set to approve yet another round of stimulus check payments - the third since the start of the COVID-19 crisis. However, this round will have some more significant payment changes than the last one, and it's worth getting a better understanding of who will get how much. Furthermore, House Democrats were able to make some changes to overall eligibility limits, ensuring that new groups of people are eligible for this payment that were not eligible previously. 

Lower Income Limits

President Biden has agreed to demands from moderate Democrats in the United States Senate, signing off on changed eligibility limits. These will lower the income limits on people getting stimulus payments, meaning that people who received money in the last round of filing may actually get less money - or no money - in this round. 

The limits are as follows: First, individuals who make less than $75,000 will now see their payment start to phase out, with the number disappearing completely by $80,000. For heads of households, that number is reduced to $112,500. For couples, that number is reduced from $160,000 to $150,000. Couples making more than $150,000 would see reductions in payments, with the stimulus completely fading out by $160,000. 

However, kids still qualify as adding to your payment, with each child adding $1,400.

You MAY Want to File Your Taxes Now - Or Not

Things can get a little complicated when it comes to filing your taxes. If you've already filed your taxes, you can skip this section, as there is nothing else you can or need to do.

Your income level is determined by whatever taxes the IRS has on file right now. So, if you haven't filed your 2020 taxes yet, your payment will be based on your 2019 taxes. However, many individuals saw serious income changes in 2020 as a result of the pandemic. So, if you lost your job or made less money, you'll probably want to file your taxes as soon as possible. This is particularly the case if your income levels changed to the point that it pushed you under the eligibility limits or qualified you for money.

However, what if the reverse is true? What if you made more money in 2020, potentially pushing you over income limits? In that case, wait. The IRS will not give you the benefit of the doubt, and filing now may mean that you make yourself ineligible for the stimulus payment, or that you receive less money. Of course, don't wait too long: The tax filing deadline is still April 15 this year. 

On the plus side, you won't have to pay any taxes on the stimulus payment. So, in addition to this being free money, it's tax-free money. States have not taxed the stimulus payments either.

Are Other Groups Eligible?

Yes, and there's good news here. House Democrats made changes - changes that have remained in the bill despite Senate opposition to other portions - that have expanded the eligibility of who qualifies for stimulus payments. For this round, college students and adults with permeant disabilities would qualify for a stimulus payment. This change was fought for by many groups, including advocates for the disabled. 

What Happens Next?

As of this writing, Senate Republicans are attempting multiple parliamentary tricks in order to delay the passage of the bill, including forcing a reading of the entire proposal and offering a series of amendments. However, Democrats hold the slimmest of possible majorities, so those efforts are likely to fail. Most or all Senate Republicans are expected to vote against the bill, meaning it is possible it will pass by a 51-50 margin, with Vice President Harris breaking a tie. That will send the bill back to the United States House of Representatives, where the Democratic-controlled body still has to approve the bill. 

From there, President Biden will sign the measure, which also contains a variety of other tax credit, business loan programs, and aid to state and local government. If the stimulus portion operates the same way that the last bill did, it should only be a few weeks until the payments are actually sent out. That could be great news for suffering Americans.