Many were wondering if we’d receive another stimulus check in this year. Many Americans were hopeful but many others believed that was unlikely to happen. After nearly 9 months since Congress issued the first stimulus check, they’ve dangled the carrot long enough promising to reward the people what they rightfully deserve, a glimmer of hope.
While a stimulus payment in the amount of $600 may not cure all our financial problems, it could be the band-aid we need to get back on our feet in the short-term. That could get us through the next month of mortgage payments or keep our utilities running. It might just buy us enough time to figure out a plan to support ourselves.
For those of us supporting a family, every penny helps. After graciously receiving the first batch of stimulus money, I can honestly say it helped our single-income family endure that difficult financial period. While $600 won’t cure everyone’s problems, the “glass is half-full” side of me thinks it could always be worse.
This is where we are at now. Patiently waiting to see what the POTUS decides is best for his people and how that pans out for us before the next president takes office. Because who wouldn’t benefit from seeing a direct deposit courtesy of Congress show up in their bank account?
Will I get a second round of COVID-19 stimulus checks?
The lucky Americans who didn’t lose their jobs or didn’t own businesses, the main feature of the CARES Act passed in March offset the economic effects of the global pandemic with the $1,200 per person stimulus payments. Since then, the pandemic has spread quicker while the economy has fallen behind pace. The White House and congressional Democrats persisted through a long period of on-again, off-again negotiations. It seemed as though no resolution was in the near future but that is all about to change.
Efforts to negotiate a second stimulus check before the election failed with the question of whether some assistance will arrive prior to Biden and Congress are sworn in come January. Another series of checks, ranging from $600 to $2,000 per person, may be a possibility next year if the Democrats gain control of the Senate by winning two January 5 runoffs in Georgia. But only time will tell.
Can the IRS make me return my stimulus money?
Absolutely not. This stimulus check will be yours to keep. You can use it as you see fit. Rumors floated around during the first round of checks sent out back in April of this and are returning this time around. Rest assured, these will not have to be paid back to the IRS.
How much will my second stimulus check be?
Just like the first round of stimulus checks, the income thresholds will be the same. For individuals with an adjusted gross income below $75,000 per year and married couples filing jointly with adjusted gross incomes under $150,000 per yer, your payment will be $600 per adult and $600 per qualifying child. The income limits are based on your 2019 tax returns.
For every $100 earned over the income margin, a $5 deficit will be applied to the stimulus payment. For example, an individual grossing $80,000 in 2019 will receive a payment of $350 ($5,000 over limit equals $250 less payment).
Will I pay taxes on my stimulus check?
No, there will be no tax liability when your stimulus check is deposited into your account. The Internal Revenue Service doesn’t consider stimulus payments to be income, which means you won’t be taxed on your stimulus money and the IRS won’t garnish it to pay for any back taxes you may have owed.
How should I spend my stimulus check?
Preferably, you may want to use it to support local businesses or those businesses who were struggling during the initial outbreak of the coronavirus. They suffered the most during this whole ordeal while much larger blue chip companies prospered. The smaller businesses were forced to follow a different set of rules limiting their sales, restricting customer contact, and inevitably closing their doors for good.
If your personal finances are in good shape, supporting those less fortunate than you are would benefit the economy way more than just letting your money sit in a bank account earning pennies in interest.
How fast could the IRS deliver my second stimulus check?
The checks are in the process of being set out right now. The $600 stimulus check has already been signed into law and authorized for distribution to qualifying individuals. If the IRS has your direct deposit information, you will be among the first to receive your payment.
The first wave of stimulus payments are pushing to be sent out on Wednesday December 30th, 2020. While not all payments will be sent out at that time, the IRS is aggressively aiming to deposit majority of the checks within the next 2 to 3 weeks. This is a much faster timeframe than the first round of checks earlier this year.
What if I didn’t receive my first stimulus check?
When you file your 2020 taxes in 2021, you can claim what is known as the Recovery Rebate Credit. This Recovery Rebate Credit will either allow you to receive a larger tax refund or it will decrease the amount of taxes that you owe. If you are eligible for a credit and don’t owe taxes this year, your credit will be in the form of a tax refund.
To be eligible for this credit you must: have been a U.S. citizen or U.S. resident alien in 2020, not have been a dependent of another taxpayer for tax year 2020, and have a Social Security number issued before the due date of your 2020 tax return (including extensions).
This is a one-time benefit that you will not want to miss out on.
My finances are not in order, what should I do with my stimulus check?
Honestly, if your finances are out of whack and you need guidance, do not fret or feel alone. I’ve been there before, didn’t like it one bit, then miraculously scratched my way out of it. My purpose is to help more people get out of the hole they feel trapped in like I once did.
Let me just say that I am not perfect in any way, shape, or form. But I know that many can benefit from someone who they can relate with. Another average person who is doing their best with their finances in a world where it isn’t taught. That person is me and I am here to help you any way that can (without sending you money of course!).
So to best answer the question of what you should do with your stimulus money if your finances are need of help, I will direct you to a few other posts that could help you so I don’t deter from the content this post was initially created for which was the second stimulus check.
- How To Talk To Your Partner About Money Now
- 15 Financial Rules You Probably Never Heard Of (And Some You Have)
- Don’t Waste Money With Low Interest Debt! Do This First
- How To Budget With A Pen And Paper
- Are You Making These Common Budget Mistakes?
- 7 Easy Ways To Recover Quickly From Overspending
- 7 Bank Accounts You Need To Hack Your Family’s Finances
May this second round of stimulus checks help you with your personal finances or possibly help your favorite small business stay afloat. There are many ways to spend your money foolishly. Helping your finances or someone else’s is not one of them.
What are you doing with your stimulus check? Will you be spending it differently compared to the first round of stimulus payments?