Stimulus check income limit, amount, eligibility: Everything you should know about the IRS payment

When the Senate reconvenes on Monday, members will debate the measures that could go into another economic relief package for Americans hit the hardest from the declining economy, including a second stimulus check. While no decision has been reached yet, we do have some idea about who could qualify for an extra economic impact payment and how much you could be paid in another round.

In the first round, the CARES Act allotted up to $1,200 per person. Though it was passed in March, some who qualified still seem to be waiting for that first stimulus payment.

If you haven’t yet gotten your first payment via check or direct deposit, read on to determine how to find your payment schedule, calculate how much you may be owed and clear up any confusion about whether you’ll have to pay taxes on the money in the future. If you think the letter containing your stimulus check or prepaid debit card has been stolen or lost, however, follow these steps to notify the IRS that the payment is missing.

Know your stimulus check rights

Here are some important things to know about your stimulus check. 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 does not 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.

Since the stimulus check doesn’t count as taxable income, you are not required to hand it over to facilities like nursing homes and landlords. Lawmakers are looking into stopping this practice, the LA Times reported.

Your stimulus payment will also not count toward determining any benefits you receive from the federal government.

You can spend your stimulus money just like cash. If you receive your payment on one of the prepaid debit cards, you can transfer the entire amount to your own account. The one limitation is, the IRS will reduce your payment to offset past-due child support.

Second stimulus check from the IRS: What’s happening now

As the US economy continues to weaken because of the coronavirus pandemic, the pressure is building in Washington to approve another round of aid for individuals and families. Here’s the latest progress on the second stimulus check, including the current proposals for another direct payment for individuals, and extended relief for renters and unemployed people…Read more>>

Source:-cnet