Update: What We Know About the Second Stimulus Check
The global pandemic, Coronavirus, took every country by surprise, however a large number of countries were proactive to cover their citizens during this period of uncertainty, one of which was the United States of America. The American Government enacted the CARES Act which amongst others, provided stimulus payments to its citizens. The Act was a welcomed initiative to alleviate the hardship that the pandemic posed but a major downside was that it was insufficient and restrictive in its application.
Nevertheless, a beacon of hope seems to be on the horizon for the American people because the House of Representatives recently proposed a bill known as the HEROES ACT, an Act with even larger funds (up to Three Trillion Dollars) and a wider scope of provision and threshold. So, what are the interesting things about this new stimulus check compared to the one under the CARES Act?
A shift in the qualification threshold
Citizenship adjustment: A major downside of the CARES Act is that only Citizens with a green card are eligible for the stimulus checks. It failed to recognize immigrants who legally pay tax but are on a long waiting list for their green cards, and US citizens married to an immigrant without a green card are also excluded. The HEROES Act, on the other hand, would only require a taxpayer identification number which is what is used by most immigrants rather than the requirement of a social security number under the CARES ACT.
Income threshold: The threshold for the stimulus check under the CARES Act was based off previous income of the population before the pandemic hit. The Act left out those with low credit scores and Tax returns due to job loss or unpaid loans as they were not eligible for the stimulus checks. The HEROES Act hopes to consider the new Covid-19 economic realities.
College teen eligibility: A major benefit of the HEROES Act is the adjustments to be made with relation to the teenager and college student threshold. Under the CARES Act, parents were able to claim stimulus pay on their children below 17 years only. However, college students who are still claimed as dependents by their parents were excluded from the stimulus payment. The HEROES Act proposes to change this situation.
Family Structure: If the HEROES Act is passed, there would be a likely increase in the stimulus payment. The CARES Act provided up to a $3,200 payment for each household whereas, the HEROES Act is looking to provide families with up to $6,000 and it will consider every dependent member of the family.
How Far the Heroes Act has gone
The Heroes Act was proposed by the House of Representatives and its content looks attractive and more inclusive than the CARES Act. There is however no saying when it would come to fruition.
If you are in financial trouble, waiting around for the next stimulus check may not be the answer. The attorneys at Dsouza and Strachan Law Group can take an in-depth look into your finances and give you the guidance you deserve. Contact Dsouza and Strachan Law Group today for a free consultation.