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Congress has finally reached a bipartisan deal on a $900 billion Coronavirus Relief stimulus package, and the President has signed it into law. This one also includes a stimulus payment, but there are big differences between this one and the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed in March.
Who qualifies for this round of stimulus payments?
The requirements are similar to the last round of payments with the upper income limits reduced.
To qualify for the economic impact payments you’ll need to meet each of the following requirements:
- Have a social security number
- You are a U.S. Citizen or U.S. Resident Alien
- Make less than $87,000 filing single or $174,000 as a couple on your most recent tax return
- You weren’t claimed as a dependent on someone else’s tax return
How much is the stimulus payment?
This COVID relief bill includes only up to $600 for qualifying adults, which is half of the amount offered by the CARES Act in March.
If you made under $75,000 on your most recent tax return, you will be eligible for the full $600. Couples that filed together and made under $150,000 on their last return will be eligible for $1,200 combined.
If you made over the income limit but less than $87,000 filing single or $174,000 as a couple and meet the other requirements, you’re eligible for a reduced payment.
You are also eligible for a flat amount of $600 per child dependent 16 or under.
How will I get my payment?
You will receive your payment through either check or direct deposit using the same method you requested filing your 2019 tax return.
When will I get my stimulus payment?
Last week, Treasury Secretary Steve Mnuchin told CNBC that the first payments will go out before the end of the year.
While it will be a bit longer before everybody receives payments, they will probably be available much faster than last time since the Internal Revenue Service (IRS) already issued similar payments earlier this year.
How can I get my stimulus payment with Varo?
If you requested your 2019 tax refund as a direct deposit to your Varo Money bank account, you’ll receive your payment as soon as it’s issued by the IRS.
What can I do with my stimulus payment?
There is no limitation on how you can spend the money. These stimulus payments were issued by the federal government to help working class and middle class Americans who’ve been impacted negatively by the pandemic. If you need to spend it to cover basic expenses, you should.
If you don’t have immediate expenses to cover, it’s a good idea to save it. Sign up for Varo’s high APY Bank Account here.
Will I get another stimulus payment?
Currently, the bill the President signed only allows for the $600 payments, but there is a move in Congress to raise these payments to $2,000. While this raise in the stimulus payment passed the House, it has not yet come to a vote in the Senate. Joe Biden has also said he’ll push for another round of checks when he’s in office. There is no guarantee that the stimulus payment will be raised to $2,000 or that there will be another round of payments.
This COVID relief bill did extend the enhanced $300 a week unemployment benefits for up to 11 weeks, so if you qualify for unemployment you will likely keep this benefit. Restarting unemployment benefits under the new law may take states 3 weeks or more according to experts. Be patient as states get in gear to provide these benefits.
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