$1,200 Stimulus Checks Still Possible in 2020, IRS Plans to Send Out 50,000 Direct Payments Next Month

Americans could still hope to get a second set of $1,200 stimulus checks in 2020 whether or not politicians are able to resume talks on a new coronavirus relief package or relief bill. On August 27, House Speaker Nancy Pelosi told reporters that officials want to agree on a new bill.

Stimulus checks in 2020

According to CNET, there are several factors that could affect the amount that would be given to eligible Americans. The first thing that politicians have to agree on is the size of the package and the amount of each individual payment.

Officials will then look into the eligibility requirements of the direct payments which would be based on several factors, including adjusted gross income.

The most-asked question is when or if Congress will settle on a second stimulus check plan. Senate members are on leave until the day after Labor day and are scheduled to resume sessions on September 8.

Republicans said that they plan to propose a new coronavirus relief bill which would also provide funding for the United States Postal Service (USPS). While the proposed legislation does not seem to include a stimulus check, the proposal of the Senate has not yet been released, which means there is still a chance it could be included.

Also Read: COVID-19 Continues to Hit Economy, 1M more Americans Apply for Unemployment Aid

Recently, the Internal Revenue Service (IRS) announced that it would be working on sending out 50,000 stimulus checks next month. The direct payments are part of the "catch-up" Economic Impact Payment that resulted from a mistake by the agency in the processing of the first direct payments, as reported by Forbes.

The tens of thousands of stimulus checks were held by mistake by the IRS due to the chaotic situation created by the coronavirus pandemic. What the agency did to try and mitigate the damage was providing the affected individuals with an offset of their stimulus checks for past-due child support owed by their legal spouses.

Incorrectly withheld direct payments

Authorities said that even those who filed Form 8379, the Injured Spouse Allocation, with their tax returns for 2018 and 2019. The form was used to notify the agency to avoid withholding the direct payments from the injured spouse due to their partners having outstanding obligations.

The IRS discovered the issue in May, and on the Economic Impact Payment Information Center, the agency said it was aware that some portions of payments to individuals who filed an injured spouse claim were offset by the past-due child support of their partners.

The agency said it was working with the Bureau of Fiscal Service along with the Office of Child Support Enforcement of the US Department of Health and Human Services to correct the mistake in as little time as possible.

While the IRS previously stated it was beginning to resolve the issue and distribute the payments to those who need it, it did not provide a timeline of when Americans could expect to see their stimulus checks being distributed.