Stimulus check: Why some people may not get a second payment

Discussions for second coronavirus relief bill largely stalled over summer

Congress continues to negotiate a new economic relief package after discussions over a second round of relief to assist those impacted by the coronavirus pandemic deadlocked earlier this year.

With the declaration of Joe Biden as winner of the 2020 by major news networks on 7 November, hopes have renewed that passing of another relief bill could finally be on the cards.  

However, much is still unknown about exactly when a bill could be passed, how much money will be allocated to it and what kind of support it will contain.

Will there be more stimulus checks?

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March, individuals could receive up to a $1,200 stimulus check, while couples received $2,400, plus an extra $500 per child 16 and under.

Despite severe conflict between Republicans and Democrats in Congress over the contents of a second relief bill, leaders have largely agreed on the issue of a renewal on the $1,200 stimulus payments.

However, talks regarding the bill hit a complete standstill after Donald Trump halted negotiations until after the US election on 3 November.

An outline for relief published by the president-elect following his presidential win has included “additional checks to families should conditions require” but is unclear how much they would be worth or who would be eligible.

Who likely won’t qualify for another stimulus check?

Under the initial CARES Act, single filers with income exceeding $99,000 and $198,000 for joint filers with no children were not eligible for the payment and this could likely be the case again in the next bill.

Those who also earn more than $99,000 or $198,000 through other assets would also not receive a check.

People currently incarcerated were not specifically banned from receiving the initial stimulus cheque and were then interpreted as ineligible before a federal judge ruled they could file for the check. It is unclear whether incarcerated people will get a second stimulus check.

For those who have died since the previous tax filing, the IRS says that they're currently not eligible to receive a check and their families can't keep the money on their behalf.

If you have not passed the green card test or the substantial presence test, or are married to someone who hasn’t filed your taxes jointly, you may not be eligible to receive a second stimulus check as per regulations of the initial payments.

The HEROES Act proposed by Democrats could extend stimulus checks to a group of people who aren't US citizens and pay US taxes but no deal has yet been passed.

For teenagers above age 16 and college students under age 24 the most recent White House proposal for stimulus would keep the CARES Act definition, so they will not receive a direct payment but the amount of stimulus would be increased from $500 to $1,000.

Who is likely to qualify for another stimulus check?

Under the initial CARES act tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment, which again could likely be the case under new proposals.

Filers with income above $75,000 for individuals and up to $150,000 for married couples still received a payment under the act that was reduced $5 for each $100 above the $75,000/$150,000 thresholds.

Therefore those who earn between $75,000 and $95,000 are likely to get a portion of the cheque if the income rules don't change.

As the head of household, to get the full amount from a stimulus cheque, your AGI would need to be less than $112,500 with deductions available up to $146,500.

Social Security recipients and railroad retirees who are otherwise not required to file a tax return and were eligible for the first payments so could likely to be again.

Non-citizens may be eligible if they have a Social Security number and live and work in the US. 

In the Democrats HEROES bill individuals with Taxpayer Identification Numbers would be able to qualify for cheques, marking a change from the first payments, which required valid Social Security numbers, but again this has not been passed.