There is a good chance many will get a second stimulus check next month. On Monday, the Senate introduced its proposal, the HEALS Act, for the next stimulus package. If the negotiations on the final bill conclude this week or early next week, many will receive their check sometime in August. However, this time it is possible that many people will get two stimulus checks amid the coronavirus outbreak.
Coronavirus: why two stimulus checks from IRS?
The first stimulus check will be part of the coronavirus relief package, while the second check you may get will be interest on your tax refund.
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This year the IRS extended the deadline for filing a tax return from April 15 to July 15 due to the coronavirus pandemic. This extension of the tax deadline could prove beneficial for some taxpayers, providing them a few more dollars. Such a payment could mean that some users get two stimulus checks from the IRS amid the coronavirus outbreak.
However, not all will get this second check from the IRS. Read on to find out if you will get the second check or not.
The IRS is required to pay interest on the refunds it takes extra time to process. This interest started accruing on April 15 until the time the IRS issues you a check or puts a direct deposit in your account.
However, this year things are a bit different. As always, the interest on the accrual period started on April 15, but the period holds even if you didn’t file your tax return until July 15.
“Interest on individual 2019 refunds reflected on returns filed by July 15, 2020 will generally be paid from April 15, 2020 until the date of the refund,” the IRS says.
Thus, you have a slight advantage if you file taxes late this year.
Who will get two payments?
All taxpayers who didn’t get their refund by April 15 are eligible for this second check. As far as how much you will get, the IRS pays an annual interest rate of 5%, compounded daily through June 30. From July 1, the interest rate drops to 3%.
This means if you are expecting a refund of $1,000, you will get about 14 cents in interest per day for the period between April 15 and June 30 and 8 cents a day thereafter.
This way, you will get two coronavirus stimulus checks. However, unlike the actual coronavirus stimulus checks, the interest on your refund is taxable. You will have to pay taxes on it when you file your 2020 return.
According to the IRS, it may send the interest payments in the form of a check or direct deposit. Another option is adding it to your forthcoming refund. As to when you may get two coronavirus stimulus checks, there is no specific date. Your coronavirus stimulus check is expected to arrive next month, while the second check for the interest could come later this summer.