All you need to know about the second stimulus check

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The month of August brought in a wave of good news amidst the coronavirus gloom. Be it Kamala Harris’ nomination for the Vice Presidentship in the upcoming elections or be it the economy that’s roaring to get back up on its feet. There is no doubt that August has come bearing good news.

And one significant development has been the announcement for the second round of stimulus checks. With the first round of stimulus check payments announced in April, the middle class could breathe a sigh of relief. The Federal Government made 160 million such payments until June with more than $270 billion being paid out by June. A part of the $2 trillion CARES package, people in need across the country have received their stimulus checks.

This July; most Americans were on the lookout for a second stimulus payment which would help them survive during the pandemic. It has been a means to put food on the table for many individuals who have lost jobs or are facing pay cuts.  

By now, it is clear that a second stimulus payment is coming. The only question is when is it happening. Incidentally, both Republicans and Democrats think that a second stimulus check should be paid to Americans. The plans have been chalked out, what’s left is a final order by the U.S President.

While many Americans await the good news, here’s what you need to know about the upcoming second stimulus payment:
A second stimulus check will mean that another $1,200 are coming to Americans. However, this includes $600, which corresponds to unemployment checks which may be increased in the second instalment.

For a second stimulus payment to be made, another relief package needs to be passed in the Senate. A package introduced by the Democrats is proposed at $3 trillion and termed the HEROES Act. Republicans suggest a HEALS Act which will be worth $1 trillion. A middle ground between both these proposals needs to be found to start the process.

You do not have to pay taxes on this money. It implies to the fact that the stimulus check is tax-exempt and you can get a rebate for it.

The first stimulus check that you received was mostly a refund by the IRS to you on your latest income tax return. The IRS is bound to pay you more next year if you were not adequately compensated.

If the stimulus check that you received was more than what was promised, you would not have to pay back the extra money. You could file for a claim if you earned less than the guaranteed amount. The most significant cause of less payment is improper disclosure of dependents in the claim form.

American citizens await the second round of stimulus payments eagerly while many still wait for the first round of payments. There’s no doubt that this is an essential payment to ensure continuing livelihood; however, you can talk to us at c19grants@mytaxfiler.com for better financial planning to endure these times.

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