Most Americans will be receiving the second stimulus check for $600. The IRS has begun the process of sending direct deposits to taxpayer bank accounts. Don’t hold your breath that they will arrive in a timely manner. Follow this link to the
IRS website to see when your stimulus check will arrive. If you haven't changed your bank account or want to see if you are eligible, the link will let you update your banking information as well as get more information.
Now the question is, will the federal government send out a third stimulus check? The answer is still unclear.
The Current Position
President-elect Joe Biden declared that sending a third stimulus check along with other protection measures are a top priority for his new administration. He is planning to ask Congress to add a third, larger stimulus check that would reach more people, continue federal unemployment checks beyond March 2021, renew the eviction ban, allow student loan deferrals or forgiveness, send more money to state, local and tribal governments, improve contract tracing, COVID-19 testing and vaccine distribution, and possibly even COVID-19 liability protection for businesses.
With Mitch McConnell’s removal as House Majority Leader and a slight Democratic majority in both houses, this plan could get strong support and rapid implementation. However, one Senator, Joe Manchin (D), has stated that it is more important to focus on the vaccine and less on sending more money to people who have already received a stimulus check. Other legislators could join him.
We will see what happens after January 20.
How Much Would a Third Stimulus Check Be?
President-elect Biden suggests another $1200 check modeled on the first check. When the legislature seemed more agreeable to $2,000 checks, he has suggested that the higher amount would be preferable. If there is a third stimulus check, the amount per person and certain dependant will be somewhere between those amounts.
Who Gets Check #2?
The guidelines for stimulus check #2 are as follows:
- 2019 single filer adjusted gross income must be less than $75,000
- 2019 married filer adjusted gross income must be less than $150,000
- If you make more than those amounts, your check amount will be decreased
- Dependant children under 16 will receive a $600 check
- No provisions were made for dependant children over 17 or college students
- No provisions for senior citizens claimed as dependant
- More legal immigrants and their legal children will receive checks
Who Gets Check #3?
Since stimulus check #3 is still in the planning stages, there is hope that more people will be eligible, including legal immigrants, children, college students, and dependent senior citizens.
$600 Only Goes So Far
If you are in a situation like millions of Americans where $600 is not really going to make a lot of difference to you, you may need extra help.
Throughout our blog, we have tips that might help you out with your finances - asking for relief from creditors, cutting costs, and places to look for help.
If you are drowning in debt and you are considering bankruptcy, give the debt experts at Pacific Debt a call. There are solutions available. The phone call is free and there is no obligation.
Update on Potential Third Stimulus Check
As of December 2023, another round of stimulus funding is being debated by Congress under President Biden's economic plan. The current proposal includes payments of up to $1,400 per individual to supplement the previous $600 checks issued earlier in 2021.
According to the latest announcement from the White House, eligibility for the potential third stimulus check may be expanded to reach more Americans in need.
Some of the proposed eligibility guidelines include:
- Income caps would remain the same as previous checks, with phase-outs starting at $75,000 adjusted gross income for individuals and $150,000 for married couples.
- Dependents of any age, including college students and elderly adults, would make entire households eligible for additional payments. Previous checks excluded dependents over 16.
- Mixed-status immigrant families with undocumented family members may now qualify if they have household members with Social Security numbers.
The timeline for final approval and distribution remains fluid as negotiations continue in Congress. Senator Manchin (D) has reiterated concerns over adding to the federal deficit, so concessions may still occur.
We encourage you to check back frequently or connect with one of our debt specialists to get the latest updates. We are happy to answer any questions about eligibility for current and proposed stimulus packages and provide advice if your situation requires further financial assistance.
What If I Need More Support?
We realize the stimulus payments, current and pending, still may not be enough relief for many individuals and families facing hardship.
Request relief from creditors
If the stimulus checks only make a small dent, speak directly with your creditors to explain your situation. We have guides on calling creditors with tips to successfully have late fees waived, interest rates reduced, or payments paused or decreased. These conversations are more effective than consumers realize - creditors want to retain you as a customer in the long run.
Cut monthly expenses
Review your household budget thoroughly and look for any non-essential costs you may be able to reduce or eliminate. Things like cable packages, unused subscriptions, excessive vehicle costs, retail therapy, and dining out often drain more cash than we realize. Try our budget calculator and money-saving challenges to boost your cash reserves each month.
Seek local assistance
Don't forget to check if you qualify for any additional relief resources in your community while federal programs lag. Reach out to local religious charities, nonprofit groups, unemployment offices, and social services to inquire about emergency grants, rental assistance, food banks, job placement, and other aid available near you.
Get expert debt advice
If you've taken all these steps and your debts still seem impossible to handle, talk to one of our certified credit counselors for a free personalized consultation. We can help you negotiate with stubborn creditors, consolidate high-interest loans, create a family budget, enroll you in available hardship programs, get collections calls to stop, repair your credit, and explore debt relief options like debt settlement or bankruptcy if appropriate. Don't struggle alone - help is one call or click away!
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