What You Need to Know About the New Stimulus Bill: Economic Impact Payments, Unemployment Benefits, and More

In December 2020, Congress picked up negotiations around a new stimulus package, reportedly worth $900 billion, that would provide relief to the U.S. economy and Americans still struggling during the pandemic. The big question is – will there be another stimulus payment? If so, how much should you expect to receive? Here’s what you need to know.

What’s included in the new stimulus bill?

According to reports, the new proposal includes:

• Another round of Economic Impact Payments (sometimes called stimulus payments) equal to $600 per eligible adult (down from $1,200), plus $600 per dependent child (up from $500)
• $300 in weekly federal unemployment benefits for 11 weeks to those who qualify
• An extended Payroll Protection Program includes $284 billion in federal relief funds for small businesses
• A renewed eviction moratorium for renters through January 31, 2021 and $25 billion in state and local emergency rental assistance for past and future rent payments
• $16 billion toward coronavirus vaccine development and distribution, testing, and contact tracing efforts
• New funds for schools, including $82 billion for education and $10 billion for childcare.

How much money will I get?

According to reports, the new stimulus check amount will be $600 per eligible adult and $600 per dependent child. These details may change in the coming days as the bill works its way through the final stages.

If you earned $75,000 or less in adjusted gross income in 2019, or $112,500 or less in adjusted gross income as a head of household in 2019, you will receive the full payment of $600. Payments will be reduced by $5 for every $100 over the applicable threshold, phasing out after $87,000 for individuals and $124,500 for heads of household.

If you filed as married filing jointly and reported up to $150,000 in adjusted gross income combined in 2019, you will receive $1,200. For joint filers, payments will be reduced by $50 for every $100 over the threshold and will phase out after $174,000.

Parents of dependent children are eligible for an additional $600 per qualifying child.  

When will I get my second stimulus check?

Reports state that payments will be released in batches, with the first batch set to release as early as the week of December 28, 2020.

Those who have direct deposit information on file with the IRS will likely receive their payment first.

Help! I haven’t received my first stimulus payment.

Most people received their Economic Impact Payment to the account on file with the IRS for tax refunds, via paper check, or via a government-issued prepaid card. If you did not file taxes in 2018 or 2019 with the IRS, you could register online by providing your information using the IRS Non-Filer Tool. The deadline to register online was November 21, 2020. If you missed the deadline, you may still be eligible to receive a payment in 2021, according to the IRS. Learn more here.

Find out more about the first round of Economic Impact Payments here.

Sources:

https://www.cnet.com/personal-finance/whats-in-the-new-stimulus-bill-300-weekly-unemployment-bonus-600-checks-more/

 https://www.nytimes.com/live/2020/12/14/business/us-economy-coronavirus#a-bipartisan-group-of-lawmakers-unveiled-a-748-billion-stimulus-compromise-separating-out-the-most-contentious-sticking-points

https://www.newsweek.com/who-qualifies-second-stimulus-check-600-dollars-1556286

https://www.cnbc.com/2020/12/20/second-stimulus-check-how-much-to-expect-from-new-covid-relief.html

https://www.nytimes.com/article/stimulus-deal-update.html

https://smartasset.com/financial-advisor/covid19-second-stimulus-checks