Coronavirus Stimulus Checks: What To Expect

Congress is gearing up to send out a second round of stimulus checks to Americans across the country to combat the recession being created by the coronavirus pandemic. With stores, restaurants, and more being closed, and most other Americans forced to work from home, the country is gearing up for a recession or depression that is hasn't seen in almost a century.

With lessons learned from the Depression and Great Recession, one of the biggest ways to stimulate the economy and keep American's financially safe is to simply give them cash to spend - to pay rent, buy food, and take care of their families.

Let's look at the history of stimulus checks, and give you an idea of what to expect, how to prepare, and what you should seriously consider spending your stimulus check on given what we've learned from history.

Updates: This post is updated as fast as possible. The IRS is announcing updates almost daily. Please check the dates of comments if you're looking for specific answers.

Round 3: American Rescue Plan Act of 2021 ($1,400 Stimulus)

On March 11, President Biden signed the Senate version of the American Rescue Plan. You can find the full text here.

This round has some major differences compared to past rounds of stimulus. And the phase-outs are slightly different, but adult dependents now qualify.

The checks are for adults: $1,400 for singles, or $2,800 for couples. It also includes $1,400 for dependents (including adult dependents).

The benefit phaseout starts at:

• $75,000 in adjusted gross income for singles
• $112,500 for heads of household
• $150,000 for married couples filing jointly 
• Completely phase out at $80,000 for singles, $120,000 for head of household, and $160,000 for couples

The bill asks that payments be sent out as quickly as possible. Given the delays around the first time, we expect the first payments to go out in about 2-3 weeks, with the last ones still taking months.

The new bill also has a few correction:

• This bill expands the criteria for eligible dependents, to include adult dependents, such as college students and the disabled.

Note: This isn't a recurring check. It's another one-time payment.

Round 2: Consolidated Appropriations Act, 2021 ($600 Stimulus)

On December 21, 2020, the House of Representatives released the official text of the $600 stimulus bill, called the Consolidate Appropriations Act, 2021. You can find the full text here. It's in Section 272, Additional 2020 Recovery Rebates For Individuals.

President Trump signed the bill on December 27, 2020.

This second round is less generous that the first round - but a lot of the same rules apply. 

The checks are for adults: $600 for singles, or $1,200 for couples. It also includes $600 for qualifying Children.

The benefit phaseout starts at:

• $75,000 in adjusted gross income for singles
• $112,500 for heads of household
• $150,000 for married couples filing jointly 
• Completely phase out at $99,000 for singles and $198,000 for couples (with no children)

The bill asks that payments be sent out as quickly as possible. Given the delays around the first time, we expect the first payments to go out in about 2 weeks, with the last ones still taking months.

The new bill also has a few correction:

• They make it clear that SSA, SSI, SSDI, VA, and RRB recipients don't need to file a tax return
• Unlike the CARES Act, there is no offset for child support in this bill

The bill also has a few issues:

• The still use the definition of a child as the Child Tax Credit (meaning the child must be under age 17 at the end of the tax year to qualify).

Note: This isn't a recurring check. It's another one-time payment. The recurring checks have been proposed, but haven't gained any traction.

Round 1: CARES Act Stimulus Checks ($1,200 Stimulus)

The COVID-19 response has included stimulus checks. Here's what they are as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act.

The stimulus check amount for 2020 is adults would get $1,200 each (so $2,400 for couples filing jointly) and children $500 each (children are qualifying children according to IRS rules claimed in the household under 17 years old). The benefit would start to phase out at a rate of $5 for every additional $100 in income.

You also cannot be claimed as a dependent on someone else's return.

The benefit phaseout starts at:

• $75,000 in adjusted gross income for singles
• $112,500 for heads of household
• $150,000 for married couples filing jointly 
• Completely phase out at $99,000 for singles and $198,000 for couples (with no children)

The current bill as written requires you to have filed a 2019 tax return or a 2018 return if you haven't filed your 2019 return yet by the time the checks go out, and it would send the benefit checks to the address listed on the tax return. See below for updating your information with the IRS.

Update: Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return , the IRS has released a Non-Filer Stimulus Check form you can fill out.

For Those On Social Security

Updated on April 1, 2020.

The IRS will use the information on the Form SSA-1099 or Form RRB-1099 to generate Economic Impact Payments to recipients of benefits reflected in the Form SSA-1099 or Form RRB-1099 who are not required to file a tax return and did not file a return for 2019 or 2019. This includes senior citizens, Social Security recipients and railroad retirees who are not otherwise required to file a tax return.

Since the IRS would not have information regarding any dependents for these people, each person would receive $1,200 per person, without the additional amount for any dependents at this time. 

If you need to add or update dependents that qualify, use this form: IRS Non-Filer Stimulus Check Info Form.

For Those On SSDI

This law will also include payments to those whose income comes entirely from non-taxable benefits, such as SSDI benefits.

No action will be required and your check will be delivered in the way you get your normal benefits (whether direct deposit or paper check). 

The only exception is if you need to claim dependents. In that case, you need to use the Non-Filer Form or file a simple return. Note: this must be done by April 22, 2020 or you might not get your dependent check with your regular stimulus check.

For Those On SSI

Updated on April 15, 2020.

This IRS announced those that receive Supplemental Security Income (SSI) will automatically receive automatic Economic Impact Payments (stimulus checks). No extra steps will be necessary.

The IRS estimates that your payments will go out in early May.

However, if you have eligible dependents, you need to file a simple tax return. You can also enter dependent information if you're an SSI non-filer and have dependents that are eligible. Note: this must be done by April 22, 2020 or you might not get your dependent check with your regular stimulus check.

Read the IRS notice here.

For Those Who Receive VA Benefits

Updated on April 17, 2020

Veterans and their beneficiaries who receive Compensation and Pension (C&P) benefit payments from VA will receive a $1,200 Economic Impact Payment with no further action needed on their part. Timing on the payments is still being determined. Our guess is early May based on what we're hearing.

If you have a dependent, you may still need to file a simple tax return to claim your dependent. Note: this must be done by April 22, 2020 or you might not get your dependent check with your regular stimulus check.

Read the IRS notice here.

Is This Income, A Tax Credit, Or What?

This stimulus check is a refundable tax credit for 2020, being paid to you early. You will have to claim in on your 2020 taxes, but there is nothing to pay back... unless:

• You received an incorrect amount based on household or filing (such as you're now divorced and should have received just a single check, etc.).
• You received a check for a deceased person (i.e. you received $2,400 because you received an extra $1,200 for your spouse - you'll be required to pay back the extra $1,200).
• We are currently uncertain what happens if your earnings in 2020 exceed the AGI limits. However, it appears they will not claw back the check if your 2020 earnings exceed the AGI limits.

Other 2020 Stimulus Programs

Beyond the direct checks to individuals and families, there are a variety of other programs that are providing tax credits and loans to individuals and small businesses.

We will update this section as programs emerge.

Families First Coronavirus Response Act (FFCRA)

The biggest stimulus program right now is the Families First Coronavirus Response Act (FFCRA), which expanded paid leave and sick leave for millions of Americans. It also has tax breaks to help small businesses provide these expanded benefits.

The biggest component of the FFCRA is the emergency paid leave. You can qualify for leave if you meet any of the following six requirements:

1. You are subject to a federal, state, or local quarantine or isolation order related to COVID-19.
2. You are quarantined at the direction of a health authority or healthcare provider to prevent spread of COVID-19.
3. You are experiencing symptoms of COVID-19 and is seeking a diagnosis.
4. You are caring for another person who is subject to #1 or #2 above.
5. You are caring for a child or another person due to closure of a school or other facility due to COVID-19.
6. You are experiencing similar conditions that have been specified by the US Department of Health and Human Services (HHS).

History Of Stimulus Checks

Stimulus checks aren't a new idea. In fact, in the last 20 years, the United States has given out stimulus checks three times. They've been used as a tool to combat major recessions in the United States.

Here are some past examples:

2001: Economic Growth and Tax Relief Reconciliation Act of 2001 provided $300 for single filer taxpayers and $600 for joint filers.

2008: Economic Stimulus Act of 2008 provided $300 to $600 per person, $1,200 for married couples, and $300 per child.

2009: Economic Recovery Payment of 2009 provided $250 for beneficiaries of select retirement programs, including Social Security, Veterans Affairs, and Railroad Retirement.

Beware Of Scams

With everything, if money is involved, there is a scammer out there trying to take it from you. We see this every year with tax refunds -  those robocalls pretending to be the IRS and getting you to pay them. We're undoubtedly going to see it with the stimulus checks as well.

If anyone calls you about the stimulus checks, it's 100% a scam. The government doesn't call people. They send letters and mail. That's how you'll be contacted. 

Second, the government doesn't need your personal details! They have all your information already. If you need to update your information - use the IRS website we provided above.

Finally, you never have to pay anyone anything to receive a check. This is your money, you don't need to pay for it.

Before You Comment:

First, search the comments. Many questions have been answered already.

Second, check the post dates. We update this article with the latest information as we get it from the IRS and other sources. Things have changed (a lot, honestly) since this was first announced. Some comments may no longer be accurate or relevant. Some of the policies have changed. See the above article for reference.

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