The passage ofor a new executive order might authorize a of up to per adult (and maybe even more for families who ).
Below, we examine how the first stimulus check was processed in order to shed light on how a second stimulus payment, if authorized, could work, and what you should do if you havewho were . And if you never got that first stimulus payment, try using the to find out what happened — we can also show you steps to follow if you want to . Read on for more information.
We update this story regularly.
Will you be taxed on your stimulus check? What are your rights?
These rules applied to the first stimulus payments issued in March and could serve as a model for a second round of payments, if there is one.
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 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 Act and the proposed HEALS Act, you wouldn’t receive a check if you owed child support. Under the House of Representatives’, which the Senate did not take up or veto, you would be eligible for a payment if you owed support.
In some cases, payments do need to be returned: The IRS said people who died before receipt of the payment, nonresidents alien and those who are incarcerated do not qualify for a check. These payments need to be returned if received, the IRS said.
A payment doesn’t affect other government benefits: Your stimulus check will not count toward determining any other benefits you receive from the federal government.
Feel free to spend it: Once you receive your stimulus money, you can spend it (and the hope is that you will, to help keep the economy moving). If you receive your payment on a prepaid debit card, you can transfer the amount to your own account.
How will you get your payment: Direct deposit or by mail?
A little over 75 percent of the first round of stimulus payments went out as direct deposits to bank accounts, the IRS reported. Of the 159 million payments made by June, 120 million were issued as direct deposits, 35 million were sent by…