Second Stimulus Check: How Does It Differ from the First Release?

Washington is still undecided on the conditions of the second round of stimulus checks such as the amount and timeline that it would be distributed. The White House and Congress, however, are already looking into round two of the economic relief package.

Likelihood of additional funds

According to Cnet, there are three major proposals that officials are looking at; each one coming from either House Democrats, Senate Republicans, and the White House. The schemes differ by how much financial aid they would provide to the people and how it would be distributed.

It is also possible that all three elements would be used in creating the next stimulus package as the White House and Congress work together to find common ground amid the discussions. The news comes as the details of the Heroes Act draws scepticism from Republican lawmakers of its potential to be approved.

The previous CARES Act provided millions of Americans with financial aid after the effects of the first part of the coronavirus pandemic. The Heroes Act, however, which the White House passed to the Senate was said to be dead on arrival (DOA), is still currently under development, reported AS News.

The proposal would include another set of $1,200 checks for citizens who would prove to be eligible. In the case of a joint return, the amount would become $2,400 and includes an additional $1,200 for every dependent with a maximum of $3,600. Immigrants, on the other hand, would receive the $1,200 check that was denied for them retroactively under the CARES Act.

With some people fearing that they might not be able to receive the financial support, the Heroes Act will be eligible for everyone, regardless of financial status and income rate. The Internal Revenue Service (IRS) has urged families of low-income households to file for a check as soon as they can.

Also Read: Second Stimulus Check Benefits and Worth: Is It $450 per Week or $1,200 a Month?

Reports suggest that eligibility would not change with the second set of the stimulus package as it was designed to help those who are currently struggling financially due to the coronavirus pandemic.

Republicans, however, are more concerned with assisting the Small Business Administration's Paycheck Protection Program and supporting unemployment benefits. The Heroes Act will add a further $200 billion that will be used for Hazard Pay which will be handed out to essential workers. Full-time students under 24 years old will also be given payments under the bill as dependents.

Changes between the first and second stimulus packages

The critical difference of the Heroes Act to the CARES Act is the modification of the requirements of a valid Social Security Number (SSN), which some dependent immigrants have no access to which led them to miss out on the financial aid that the CARES Act provided.

The original provision that employees who earn more than $75,000 not being eligible for the maximum amount, but rather, will have a reduced payment at certain thresholds still applies. As Forbes explained, an individual who earns at least $99,000 a year will not receive any payments.

The Heroes Act changes the perspective of the bill would change that provision to only change that person's payments to $0. Joint filers using one TIN will receive $1,200 from the CARES Act, as stated in the Heroes Act.