As per analysts, a third stimulus check could happen as two Democrats in Georgia's Senate runoff elections won.
Third stimulus checks might happen after the Georgia elections
If it happens, the government will provide Americans again with the crucial financial support they need amid the ongoing pandemic.
Households receive $600 stimulus payments this month, directed by the recent stimulus bill. However, the amount was criticized by some Republicans and Democrats as too little for struggling families. This might change soon, though.
Democrats Raphael Warnock and Jon Ossoff defeated the incumbent Republican senators, David Perdue and Kelly Loeffler, during the Georgia runoff elections, per CBS News.
The outcome will be a 50-50 between Senate Republicans and Democrats, giving Vice President Kamala Harris the power to break the vote. Therefore, the passage of another stimulus bill will be easier. President-elect Joe Biden previously expressed his support for the third round of stimulus checks, as per political and financial analysts.
Now, are lawmakers willing to push for $2,000 or $1,400 stimulus payments? Biden tweeted on January 10 that the second round of stimulus checks worth $600 for each eligible individual is "not enough when choosing between putting food on the table or paying rent." He added that Americans need $2,000 stimulus checks.
In a report after the Georgia elections, Ed Mills, an analyst with investment bank Raymond James, said, "We expect growing anticipation that Democrats will pursue additional stimulus, with a $2,000 check as a leading item."
The stimulus payment would be higher than the second round
According to CNET, a $2,000 stimulus check would bring a higher total than the $ 600-second stimulus check, with everything being equal. However, there will be some changes significantly with the qualifications for those who might also get a bigger payment.
More people qualify as a dependent
The dependents will be based on the definition of the future stimulus package. A dependent with the first and second checks is any child aged 16 or younger. But Democrats' proposals expanded the definition to include anyone who can claim on your tax returns, like children above 16 years old and children under your care.
There is a chance that the eligibility for dependents will be changed since the total stimulus bill would be raised as Democrats will soon take control of Congress.
If a third stimulus bill is passed, that will bring $500 or $600 per person you support based on the first and second checks. But it is not clear if there would be a change in the number of dependents you could claim.
The White House's October proposal offering to keep the same age restriction for children could double the payout up to $1,000. Therefore, your third stimulus check could be $500 per dependent, much more than the first check and $400 larger than the second round of stimulus payment.
You may also see $500, $600, or more than $1,000 if you have adopted a new child. It will depend on the stipulated amount in the next bill. The third stimulus check is more likely to use the figures from your 2020 taxes.
Change in employment status
You could have a lower adjusted gross income if you became unemployed in 2020 or your wage dropped. Gross income is used to determine the payment you should receive. For instance, a third stimulus check could give you a full payment if you are not employed or if you got a partial settlement with the first or second round of payment.
Various reasons could affect your third stimulus payment, including filing for spouse's status, and a change in marital status would give you a more extensive stimulus check. If you are single before, you got $1,200 at the first stimulus payment. However, being married would qualify you to receive up to $2,400 since the IRS uses a combined household income to determine the total stimulus money.
Therefore, if the third stimulus check came with $2,000 to each eligible individual, you could double it to $4,000. Filing jointly with your spouse with income below the threshold could qualify you for the stimulus check total.
According to Today, married couples who filed jointly and have an adjusted gross income of $150,000 or less would qualify for the full stimulus payment. On the other hand, a married couple who filed jointly with $174,000 or more earnings would not be eligible.