Coronavirus stimulus checks: You may not be eligible, even if you got the first one

0
Coronavirus stimulus checks: You may not be eligible, even if you got the first one
vperemencom / Pixabay

Coronavirus stimulus checks are finally a reality now. Congress has passed and President Donald Trump has signed the $900 billion stimulus package, which includes $600 in stimulus checks. However, not all will be eligible for coronavirus stimulus checks, even if they got the first one.

Get The Full Series in PDF

Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.

Q3 2020 hedge fund letters, conferences and more

Coronavirus Stimulus Checks: Got First, But You May Not Get Now

The $900 billion bill includes $600 in coronavirus stimulus checks, as well as $600 per dependent child payment. This is half the amount for the checks that Americans got under the CARES Act. However, the dependent payment is $100 more than last time.

This Top Value Hedge Fund Is Killing It This Year So Far

Stone House Capital PartnersStone House Capital Partners returned 4.1% for September, bringing its year-to-date return to 72% net. The S&P 500 is up 14.3% for the first nine months of the year. Q3 2021 hedge fund letters, conferences and more Stone House follows a value-based, long-long term and concentrated investment approach focusing on companies rather than the market Read More

Under the CARES Act, the maximum amount that a family of four got was $3,400, while in this new package, the maximum amount a family of four could receive is $2,400. Those earning up to $75,000 in adjusted gross income ($112,500 as head of household and $150,000 as a married couple filing jointly) would be eligible for the full stimulus payment.

Though the cutoff income is the same as the CARES Act, the maximum qualifying income is different because the payments get reduced at the same rate as the CARES Act checks. This will result in a change in the maximum qualifying income, making many who got stimulus checks last time, ineligible.

Similar to the CARES Act, in the new package $5 is docked for every $100 in income over the income thresholds. This means individuals with income of $87,000 (or married couples filing jointly and earning over $174,000) won’t get any payment.

So, fewer Americans would qualify for the payment this time. Also, many would get far less than the amount they got in the first round. For instance, those with income of $86,900 would get just $5 under the new $900 billion plan. In the CARES Act, the money phased out at $99,000 for individual filers.

These Won’t Qualify As Well

Along with those who would fail to qualify because of lower adjusted gross income caps, there are many who won’t qualify for stimulus checks this time as well. One such group is dependents between 17 and 24 years of age.

Under the CARES Act, millions of Americans, between the age of 17 and 24, didn’t get the payment. These Americans neither got the dependent payment, nor did they get their own stimulus checks if they were claimed as dependents for income tax purposes.

The rules are the same again this time as well. This means, if you are 17 or above, and are claimed as a dependent, then you are unlikely to get any payment this time either.

Another group that won’t qualify for the payment are "nonresident aliens." Also, those who don’t have a Social Security number wouldn’t get the payment this time as well. To qualify for the stimulus checks you don’t need to be a U.S. citizen, rather you need to have a Social Security number and live and work in the U.S.

Updated on

No posts to display