Stimulus check: How the fine print on income limit, eligibility from the first payment could affect the next

Stimulus check: How the fine print on income limit, eligibility from the first payment could affect the next

second stimulus payment of up to $1,200 for eligible Americans is still possible, even as talks over another economic relief package have stalled in Congress. The situation has also been complicated by a series of executive orders signed by President Donald Trump on Saturday.

Assuming a final bill does come to pass, we can look at the first round of stimulus payments for clues as to how long it will take to arrive, whether it will be taxable and what your rights are as far as the money. Authored by Republicans, the HEALS Act consults the CARES Act guidelines for a new direct payment. If approved, the payments could be similarly structured and sent faster than last time.

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Keep reading to learn everything we know about the status of both the first and second stimulus payments right now. And if you’re still waiting for your first stimulus check, here’s how to report a missing payment to the IRS or use the agency’s free tracking tool to find out what happened.

Will you be taxed on your stimulus check? What are your rights?

These rules apply to the first stimulus check signed in March and could serve as a model for the second check, if it passes.

The payment is not taxable: You won’t pay taxes next year on a stimulus payment you receive from the IRS in 2020. The IRS doesn’t consider it income and a payment you get in 2020 will not reduce your refund or increase the amount you owe when you file your 2020 tax return next year. You also won’t have to repay anything if you qualify for a lower amount in 2021.

Overdue debts: Under some circumstances with the first stimulus payment, banks and private creditors could seize your payment for outstanding debts. The current proposals would in most cases prohibit creditors and banks from seizing the payment to pay debts. Likewise, you are not required to hand the check over to facilities, like nursing homes and landlords, to cover expenses.

Overdue child support: With both the CARES and the proposed HEALS Acts, you would not receive a check if you owned child support. Under the House of Representatives’ Heroes Act, which the Senate did not take up or veto, you would be eligible for a payment if you owned support…Read more>>

Source:-cnet

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