Due to the coronavirus the department of treasury is issuing to US citizens economic impact payments … [+] known as a stimulus check.
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This week the House proposed the HEROES Act, a wide-ranging, $3 trillion stimulus bill that some members of Congress have likened to a “wishlist” more than a proposal. The bill is over 1800 pages long and includes numerous provisions designed to help taxpayers and businesses during the pandemic.
Included was another one-time stimulus check in the amount of $1,200 for individual taxpayers and up to $6,000 for families. There are many other provisions that you can read about here.
Even if approved by the House, this massive stimulus bill isn’t likely to make it any further, as Senate Majority Leader Mitch McConnell declared it “dead on arrival” in the Senate.
In response, House Speaker Nancy Pelosi stated this bill is, “open to negotiation.”
It is possible the bill could be modified or portions of it resurrected in a new bill. Of notable interest are some changes to the stimulus check program compared to the Economic Impact Payments found in the CARES Act.
Notably, the HEROES Act identified and corrected some perceived shortcomings in the CARES Act. Now that those issues have been formally identified, it may be much easier to package them into a new stimulus bill. It is also worth examining the current stimulus check proposals to see what members of Congress are considering as some of these proposals may trickle down to any future stimulus check program.
Your Next Stimulus Check Could be a Monthly Check, but it’s Unlikely
There have been three separate stimulus proposals that are calling for monthly checks of up to $2,000 per person and additional payments for dependents. You can read about these different stimulus check proposals here.
The monthly stimulus check proposals have received a lot of press, but they are unlikely to be passed in their present form due to the sheer cost of the programs. Estimates put the cost of those programs in the range of $3 trillion up to $10 trillion.
The sticker shock alone will most likely prevent these from being passed.
Your Next Stimulus Check Will Most Likely Be a One-Time Payment
The CARES Act provided a one-time, $1,200 Economic Impact Payment. If we see another stimulus payment, it will likely be a similar one-time payment. The IRS did a commendable job getting out the initial batch of stimulus payments, but there are still millions of payments left to process, and some of those could take months.
Starting a new stimulus payment program could potentially have many people getting their first two checks before some people get their first. Add an ongoing monthly check to the mix and you’re asking for problems.
More People Might Be Eligible for a Second Stimulus Check
The CARES Act limited eligibility based on several factors, including whether or not the taxpayer had a Social Security Number, their age, and their income.
There were some unpopular consequences of these rules, specifically as they relate to having a Social Security Number (SSN) and the age limits. The HEROES Act corrects these issues and would extend benefits to an estimated 4.3 million adults and 3.5 million children.
Social Security Number: The CARES Act required recipients to have an SSN but it prohibited payments from being made to those with an Individual Taxpayer Identification Number (ITIN). This blocked stimulus payments for married couples filing jointly if one member had an ITIN, even if the other individual had an SSN. The HEROES Act would correct this issue and make a stimulus payment to the individual with the SSN, but not the person with the ITIN. Any future stimulus payment may have the same provision.
Dependent Age Limitations: The CARES Act limited stimulus payments to dependents ages 16 and under. Those who were ages 17 and up were not eligible for a stimulus payment. This includes high schoolers, college-age students and adult dependents. The HEROES Act changed the language to “qualifying dependents,” meaning anyone who can be claimed as a dependent on your tax return. Several other stimulus check proposals have similar language. This could open up payments to millions of additional recipients if the next stimulus payment bill includes similar language.
The Stimulus Payments Most Likely Won’t be Offset, Garnished, or Withheld for Child Support
The CARES Act included language that prohibited the stimulus checks from being garnished for back taxes, federal debts, and certain other obligations. However, it did not prohibit the funds from being garnished for child support or certain other debts. The HEROES Act and other current proposals include language that would prohibit future stimulus payments from being offset, withheld, or garnished.
Families May Be Eligible for Larger Checks
The CARES Act provided a $500 payment for eligible children ages 16 and under. The HEROES Act calls for a $1,200 payment per qualified dependent, up to three dependents. This means families could be eligible for up to $6,000 in stimulus payments.
Some of the other proposals, such as the Emergency Money for the People Act would provide a $2,000 monthly check for everyone over the age of 16 making less than $130,000 per year, and an additional $500 per dependent for up to 3 dependents. Other stimulus proposals call for monthly checks with $2,000 for both the taxpayer and dependents. All of the current proposals are more generous for families than the stimulus check passed under the CARES Act.
The Next Stimulus Check Program May Include Retroactive Changes to the CARES Act – Granting Millions of People Checks They Were Initially Ineligible For
The HEROES Act included language that would make retroactive changes to the CARES Act, opening the door for millions of excluded recipients to receive a stimulus check. This primarily applies to married couples in which one partner had an ITIN or were dependents ages 17 and up.
How Likely Are These Changes – And Will We Get Another Stimulus Check?
All of the changes in this article have been taken from current stimulus check proposals. That means they are on the radar and may be implemented in any future stimulus check bill that passes.
The bigger question is if or when we will see a new stimulus payment bill be passed. The HEROES Act is already facing pushback from the Republican-controlled Senate and isn’t likely to be passed in its current form.
Likewise, the three monthly stimulus check proposals that would provide a $2,000 monthly stimulus payment are unlikely to pass due to their sheer cost (anywhere from $3 – $10 trillion).
Providing additional financial support to the American public is a hot-topic issue right now and we may see another stimulus bill passed. However, any future stimulus check proposal will need to be a bipartisan effort that strips down the overall scope of the proposal in order for it to be passed.
Related Coverage on Forbes:
Stimulus Payment Round 2: A Rundown Of 5 Current Stimulus Proposals
