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What You Should Know About the Second Stimulus Bill

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As millions of Americans continue to struggle through the pandemic, a $900 billion relief bill was signed into law at the end of 2020. For some Americans, the new $600 payment has already been deposited, but for millions of others an error between TurboTax and the IRS has led to delays.

Stimulus checks

The new bill will give each taxpayer a $600 check, or $1,200 to married couples filing jointly. That amount will be increased by $600 for each eligible child under 17, so a family of four could get $2,400.

To get the maximum payment those who filed their 2019 federal taxes as a single taxpayer need to have had less than $75,000 in adjusted gross income. The limit is $112,500 for heads of household, and $150,000 for married joint filers. Payments are reduced by $5 per $100 adjusted gross income over the income limit.

The IRS has said that all checks should be delivered to taxpayers by January 15th, with some checks already having made their way into Americans’ bank accounts.

If you didn’t file a 2019 tax return or you didn’t receive your stimulus payment automatically, you can claim the $600 amount as a tax credit on your 2020 federal income tax return (you can also claim the first stimulus payment on your 2020 taxes if you didn’t receive it for some reason).

Unemployment benefits

Americans who lost their jobs and are collecting unemployment will see an additional $300 per week added to their benefit. The benefit enhancement will last until March 14, 2021 and there’s nothing you need to do to receive the enhanced benefits if you’re already receiving unemployment benefits.

Rental assistance

The new stimulus extends the eviction protections provided by the CARES act until January 31, 2021. The bill also expands funding for rent assistance programs.

Nutrition benefits

The stimulus also increases the current SNAP benefit by 15% for the next six months, but doesn’t expand eligibility for the program. There’s nothing you need to do to receive the expanded benefit — it’s automatically applied.

Here’s a free resource that can help

If you’re having trouble making ends meet during this difficult time, check out SpringFour. This free tool will connect you with trusted resources and could help you reduce your monthly expenses by $250.1

Get Free Assistance

The information provided on this website does not, and is not intended to, constitute legal, financial, or tax advice; instead, all information, content, and materials available on this site are for general informational purposes only. Information on this website may not constitute the most up-to-date legal, financial, tax or other information. This website contains links to other third-party websites. Such links are only for the convenience of the reader, user or browser; Avant does not recommend or endorse the contents of the third-party sites.

1 Reduction of costs by as much as $250 per month based on survey responses provided to SpringFour. Individual results may vary.

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