What Happened to the Second Stimulus Check?
After many delays and too much fuss, your second stimulus check is on the way. Probably. But how much will you get, and are there any catch-22 scenarios that will accompany it? Let’s bust some myths.
First of all, the value of these checks could be seeing a significant bump. The stimulus package that President Donald Trump signed originally included a $600-per-person check. The president tweeted that the amount should be $2,000 per person, and the House of Representatives quickly passed a bill that increased the payment to $2,000 for each American.
This is not a done deal, however. It is now up to the Senate to consider this proposition. When and whether that will happen is uncertain.
The stimulus bill that Trump signed included support for local businesses, but some legislators said it would not help small companies enough to keep them afloat. On the other hand, a significant majority of the Americans who received the first stimulus check - 80% of them - said they spent it on food, and nearly the same number said they used it to pay bills. It’s evident that the average American will find a good use for the monetary boost, while businesses need a more meaningful support program.
Not everyone will receive the second stimulus check at the same time. In April, payments started arriving three weeks after the deal was complete, so that’s the likely scenario for the second wave. The IRS notes that the second stimulus might lead to delays in the 2020 tax season, especially since the first round of checks made for significant delays. The holiday season can lead to even more delays.
To ensure you’ll receive your funds, make sure your bank information is on file with the IRS so you can receive a quick direct deposit instead of waiting for a letter with a paper check inside.
The stimulus controversy is playing out against widespread concerns. Many Americans worry that they’ll face additional taxes for this monetary support or that they won’t be eligible if they aren’t required to file tax returns. There’s good news on both fronts. If you don’t ordinarily file a tax return, you don’t have to file one to receive the stimulus payment. The stimulus also won’t see any taxation, since the IRS doesn't count these payments as income. Landlords cannot take your stimulus payment, and neither can nursing homes. What you do with the money is up to you.
We’ll continue to track this developing story and notify you if and when the Senate passes the legislation.
Julia A. is a writer at SmallBizGenius.net. With experience in both finance and marketing industries, she enjoys staying up to date with the current economic affairs and writing opinion pieces on the state of small businesses in America. As an avid reader, she spends most of her time poring over history books, fantasy novels, and old classics. Tech, finance, and marketing are her passions, and she’s a frequent contributor at various small business blogs.
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