The first stimulus payment was sent in March with the intention of helping with the job losses resulting from the pandemic. Despite the attempt of the Senate Republicans to pass a smaller bill limiting spending during the COVID-19 pandemic, no stimulus checks were included in the failed bill. A congressional hearing was held on September 22nd including the Treasury Secretary and Federal Reserve Chair.
According to Texas Representative Al Green, another stimulus check is necessary for people to pay their rent to avoid eviction. Another stimulus payment is supported by the administration despite the upcoming election. Bipartisan support is necessary for a stimulus bill to pass. According to the Democrats, direct payment is crucial for the prevention of economic collapse in the U.S.Read More »
The GAO has stated information needs to be updated by the IRS regarding the individuals still waiting for their stimulus check. The IRS stated seven million individuals in the U.S. have received payments after the initial checks were sent. The plan is including another round of stimulus checks for the next COVID-19 bill. Although no definite information is currently available regarding the amount, the expectation is it will be similar to the initial payment of $1,200.
The checks are expected to be received soon but questions remain for those still waiting for their initial payment. Although Congress has not reached an agreement regarding another stimulus package for COVID-19, the possibility of another stimulus check is still there. Despite the statement made by the Treasury Secretary that the amount of the checks will remain the same, the issue is still in negotiation with the Democrats.
The original checks issued to help cope with soaring unemployment rates and the COVID-19 pandemic were $1,200 per person with an additional $500 for all dependants under the age of 17 and $2,400 for each married couple. Income was the basis for eligibility. Individuals with a maximum earning of $75,00 and couples filing jointly for a maximum of $150,000 were sent the full amount.
Individuals and couples exceeding this amount received a reduced payment. Individuals earning over $99,000 and married couples with an income above $198,00 were ineligible. Another stimulus payment requires a concession for some of the Republicans. Many are reluctant to send another payment. The Senate Majority Leader has suggested decreasing the eligibility income to a maximum of $40,000.
The stimulus checks are included in the plan initiated by President Donald Trump to provide fast relief for Americans. Although the President remains in favor of a payroll tax cut, stimulus checks will put money in American hands much faster. The preference of the President is sending out direct payments as quickly as possible. When a stimulus check is sent is dependant on how fast Capitol Hill negotiations are finalized.
The Passing of the CARES Act by Congress in March resulted in the authorization of the first stimulus round. Checks were not sent by the IRS until August. The individuals most likely to receive a second payment quicker are those receiving payments directly from the government of the United States. This includes Social Security, benefits from Veterans Affairs and Supplemental Security Income.
This is due to the efforts to obtain information for these types of recipients during the first stimulus payment. There is a concern for individuals who have still not received their initial stimulus payment of $1,200. These individuals are currently in limbo despite the fight of the Democratic party for a second round. Many individuals believe there is no excuse for any checks to still be missing.
Even though the government is aware these individuals need their checks for numerous reasons including loss of employment and overdue rent, the expectation is a long wait. The extension of unemployment benefits for the future, the amount of the next stimulus payment and when the Senate and Congress will reach an agreement currently remain unknown.
The individuals still waiting for their checks might need to remain patient until their next filing with the IRS. Some politicians are more concerned with a payroll tax holiday than a second stimulus check despite the continuation of the COVID-19 pandemic for longer than originally expected. Most agree better communication with the IRS is required to decrease the time necessary for receipt of the first payment.
Others believe these individuals must update the information on file with the IRS before a payment can be sent. Unfortunately, millions of Americans have already slipped between the crack. A phone number has been established by the IRS to check on missing payments. Numerous reports have been received getting through is extremely difficult.
As millions and millions of individuals wait for another stimulus package to be approved, there is a possibility the second round will include at least some of the individuals excluded during the first round. The majority of both the Democrats and Republicans believe adult dependents should be included in any potential bill such as individuals with disabilities and college students.
There is a possibility noncitizens married to Americans will be included. A bill has been recently passed by the Senate preventing private debt collectors from garnishing stimulus checks to pay off unpaid debts. As the U.S. remains in a state of uncertainty regarding the COVID-19 pandemic, collapsing economy, loss of employment, foreclosure and eviction, the Democrats continue their fight for another stimulus payment.
Unfortunately, there is no way to accurately predict whether or not the stimulus payment will be enough to provide a reprieve for many families in the U.S. This is partially dependent on the actual amount of the potential stimulus checks.
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