A new stimulus check will be sent to every qualified American under the Health Care Economic Assistance Liability Protection and Schools or HEALS Act.
Senate Republicans came up with a $1 trillion coronavirus relief bill proposal on Monday. The HEALS Act opened negotiations to respond to the House Democrats' $3 trillion proposal.
The Economic Impact Payments, commonly known as stimulus checks, are the common feature of both proposals.
The stimulus check, the fifth since the coronavirus pandemic started in March, could be the final economic rescue package before the November election.
A new round of $1,200 checks for individuals and $2,400 for couples are covered by the HEALS Act, similar to the CARES Act.
The proposed relief bill from Republicans will include another $500 for each dependent and will be expanded from just children to accommodate dependents of any age.
Release
The release schedule of the stimulus check depends on Senate Republicans’ negotiations with House Democrats. Meanwhile, Treasury Secretary Steve Mnuchin said he wants the legislation finalized by July 31.
According to the Treasury last June, around 159 million payments have been distributed to Americans, falling short of the predicted 171 million stimulus checks in total to be given. Since then, less than 1.5 million payments have been transferred.
In terms of qualifying for this new stimulus check, there would be no changes in the requirements stipulated under the CARES Act.
Under the HEALS Act, individuals may receive full payments with up to $75,000 in adjusted gross income, or $150,000 for married couples who filed their taxes jointly.
The Internal Revenue Service will produce the assessment from the latest filed tax returns. Those who did not file taxes for 2018 or 2019 can still send their payment information to the IRS.
The stimulus bill also covers continued federal supplemental unemployment insurance payments, albeit down from the $600 CARES ACT extra benefit that will end on July 31. Based on the new formula, there would be $200 distributed a week through September, then a payment of up to $500 that, when combined with the state payment, make up for 70% of a worker’s wages.
“This unprecedented expansion of federal assistance will help millions of workers, families, patients, businesses and governments survive this historic public health and economic crisis,” Senator Grassley said in a release.
Second stimulus
According to a Forbes report, these are the details on the second stimulus “as envisioned by the Senate Finance Committee:”
“As under the CARES Act, all U.S. citizens and U.S. residents with adjusted gross income up to $75,000 ($150,000 married), who are not a dependent of another taxpayer and have a work eligible Social Security number, are eligible for a $1,200 ($2,400 married) rebate under this section. In addition, they are eligible for an additional $500 per dependent rebate.
Unlike under the CARES Act where the additional $500 was limited to taxpayers with a dependent child under 17, the additional $500 will now be provided to taxpayers with dependents of any age. Even individuals who have no income, as well as those whose income comes entirely from non-taxable means-tested benefit programs, such as SSI benefits, are eligible for the full rebate amount. The amount of the rebate phases-out completely once the income of single filers exceed $99,000, the income of head of household filers with one child exceed $146,500, or the income of joint filers with no children exceed $198,000.”
