Second stimulus check: House GOP kills $ 2,000 proposal and leaves $ 600 deal in limbo

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If a deal is reached, experts say it will take at least two weeks for the Treasury to deposit money in individuals’ bank accounts after new legislation is signed.

“The timing could be more challenging this time, but the IRS could probably start disbursing the money in January,” said Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center.

In March, Congress provided individuals with $ 1,200 direct payments and couples of $ 2,400 plus $ 500 per child under the $ 2 trillion CARES Act.

As with that first round, the $ 600 payments included in current law would begin to taper off for those with adjusted gross income over $ 75,000, and those earning over $ 99,000, will not receive anything. The income thresholds would be doubled for couples.

It took two weeks after the first bill was passed for the IRS to start distributing the money – but some eligible recipients still haven’t received it months later.

Who will get the money the fastest

The payments are not all made at the same time. Those whose bank details are who is registered with the IRS will likely get the money first because it is deposited directly into their account. Others receive paper checks or prepaid debit cards in the mail.

About 90 million people – more than half of those eligible – received their payments within the first three weeks of April after the deal was signed in March. Most people had their money within two months.
Still, about 12 million eligible Americans were at risk of not getting the money at all because the IRS couldn’t reach them. While most people received the money automatically, those on very low incomes who normally don’t file a tax return had to register online by Nov. 21 to provide their address or bank account number.

IRS under pressure

If Congress keeps the entry requirements the same as for the first round of scrutiny, the process can be almost as simple as pushing a button. But it can complicate things if the parameters are changed, especially if Congress is adding restrictions in addition to income.

Additional checks may be delayed the start of the 2020 tax return season. A second incentive check means that the agency must make changes to the tax return forms, some of which have already been sent to the printers.

“I think the IRS will deliver incentive checks in a timely manner. It could well be at the expense of the filing season start date,” said Chad Hooper, the executive director of the Professional Managers Association, who advocates for more than 30,000-union IRS. -employees.

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