The Democratic National Convention concluded Thursday, and the Republican National Convention begins next week. Negotiators return to the table and bring qualifying Americans stimulus checks of up to $1,200 as a part of another economic relief package. A second payment from the IRS still seems to be a possibility; some big questions remain.
The second stimulus payment can get clues from the first one.
RULES APPLIED TO THE FIRST STIMULUS CHECK
The payment is non-taxable: The stimulus payment receive from the IRS in 2020, won’t pay taxes next year. The payment would neither increase nor decrease the amount payable next year. If qualified for a lower amount in 2021, there will be zero repayments.
Overdue debts: After the first stimulus payment bank and private creditors could seize your payment for outstanding debts. In most cases, the current proposals will prohibit creditors and banks from seizing.
Overdue child support: According to both CARES and HEALS Act, you would not receive any check if u owed child support. You will be allowed for payment, under the House Of Representatives, if the Senate did not take up or veto.
In some cases, payment does need to be returned: The death of the payment receivers death indicates returning these payments.
Spend it just like cash: After getting the stimulus payment, you can spend it just like cash.
HOW WILL YOU GET THE PAYMENT?
The IRS reported out of 159 million payments 75 per cent of the first round of stimulus payment went out as direct deposit, 35 by check and 4 million in the form of prepaid debit card. A big advantage of using direct deposit is the first who gets the payment.
WHEN WILL THE STIMULUS CHECK become?
Get My Payment online service sets up direct deposit for your payment and checks if anything is holding up. The tracking tool was bumpy, but the IRS improved many of the issues and is ready for the second round of stimulus payment. The US postal service is another way to get notified when the check will arrive.
Under the CARES Act, the total payment received depends on the total income in 2019 or 2018.