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Why may you not be eligible for more incentive money if a second payment is made?



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Do you get another stimulus check if it is approved? Not everyone will.

Sarah Tew / CNET

While a The second stimulus check may not come until 2021, when, and if so, there is one cold, hard fact to know. While some people could get a bigger slice of the pie and some people a smaller slice, not everyone is guaranteed an incentive payment in the first place.

There are several reasons why. About the course of the negotiations On another package, Congress would de qualifications for stimulus payments in a way that makes some people ineligible. Or you could be personally disqualified if your financial situation has changed. And some groups simply don’t meet the requirements to receive a check.

We explain below who we think are not eligible for a second direct payment, based on the first incentive payments and on the current location of the country. While you’re here, we also share 12 Facts You Should Know Now About Stimulus Controls that the end of 2020 is in sight. This story is updated often.


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Single taxpayers who are considered high earners

Your adjusted gross income, or AGI, is the amount of money you earn in one year less approved deductions. The IRS used your AGI to determine if you were eligible for this all, part, or none of the first $ 1,200 stimulus check. Under the CARES Act, your AGI closure was the only taxpayer to be $ 99,000 per year to qualify for an incentive payment. If you earn more than that through a salary or other assets, such as stocks, the IRS wouldn’t send you a check.

However, if you make between $ 75,000 and $ 95,000, you will get a cut of the check, and the same will likely be true for a second payment if the income lines don’t change. Here is how to calculate how much money you can get.

read more: Do you want your stimulus check faster? Do these things now

Heads of households that have crossed the income threshold for stimulus payments

As with the cutoff for the single taxpayer, heads of households (people who do not file jointly and who claim a dependent) with an AGI of more than $ 146,500 were also excluded from the CARES Act – unless you qualified thanks to a loophole. To get some of the incentive money, you would need to make less than $ 146,500. To get the full amount, your AGI as head of household should be less than $ 112,500.

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If you earn more than the previous cut off income, you probably won’t qualify for a second check.

Sarah Tew / CNET

Married couples who reported an AGI higher than this amount

If you are a married couple filing jointly and have an AGI of more than $ 198,000, you probably won’t be eligible for a second incentive payment unless your kids create a situation that seems to be an exception. To get the full payment of $ 2,400, your joint AGI should be less than $ 150,000. The amount you could receive will decrease if your AGI is between $ 150,000 and $ 198,000.

Find your 2019 tax return to determine your adjusted gross income. You can find your AGI on line 8b of the 2019 federal tax form 1040. If you did not file tax in 2019, find your 2018 tax document and navigate to line 7.

Possible: teens over 16 and students under 24

When the first round of incentive checks was sent, millions of young Americans were barred from receiving the payment – with these exceptions. Those who were between the ages of 17 and 24 and were also claimed as dependent children were not checked themselves due to a child’s tax code definition. So if you are 17 or older, you are not considered a child under the CARES Act, even if you still live at home.

While the House of Representatives adopted a proposal that includes $ 500 in incentive money for every person claimed to be a dependent, regardless of age, the most recent proposal from the White House would keep the CARES Act definition but increase the amount from $ 500 to $ 1,000. But if someone claims you depend on their taxes, you won’t get your own check. Now that former vice president Joe Biden is president-elect, it seems the current White House administration is no longer support that version of the stimulation proposal.

Possibly: humans defined as ‘non-resident aliens’

If you are a non-resident alien, you may not be eligible for a second stimulus check. The government defines a non-resident alien as someone who has “failed the green card test or the substantial attendance test”.

Note that you did not have to be a US citizen to receive the first incentive payment. Non-citizens must have a Social Security number and live and work in the US to receive an incentive check under the CARES Act.

The Democrats’ revised Heroes Act proposal of October 1 would extend incentive checks to a group of people who are not US citizens and pay US taxes, with a taxpayer identification number provided by the IRS.

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Non-resident aliens are unlikely to qualify for a stimulus check.

Angela Lang / CNET

If your spouse’s status is a non-resident alien, you may not qualify

If you are married to someone considered a non-resident alien, neither of you could receive the initial stimulus check for yourself or money for your family members if you file your taxes jointly – even if the eligible parent and child are citizens from the USA.

To receive a stimulus check, you must both currently have a Social Security number or be a member of the United States Armed Forces during the tax year. If you file your taxes separately, the citizen may be eligible for a full or partial incentive payment. The same is true for US citizens who claim their dependent child (as head of household) on a separate tax return from the non-civil spouse.

If you owe child support (this rule may change)

With the first stimulus check, if you child support payments due with a whopping $ 150, the government gave the states the right to seize the amount you had to pay. For example, if you owed $ 2,000, your entire stimulus check went to your child’s other parent. If you owed $ 500, that amount was deducted from your stimulus check.

The next incentive bill may contain the same language, depending on which one is assumed. The Democratic proposal would prohibit the imposition of money to pay missing child support, while the Republican HEALS Act would keep this requirement.

Under legal review: people who are incarcerated

Originally, internees were deemed by the IRS to be eligible for a stimulus check, and then interpreted them as ineligible. But a California federal judge’s ruling allows inmates to apply online for the first incentive payment before Nov. 21, noting that the CARES Act did not explicitly ban this group.

The IRS has appealed this decision, but has sent paperwork to prisons for inmates. It is unclear whether incarcerated people will receive a second stimulus check, even after receiving the first, and it may depend on the wording in the successful incentive law or in the final ruling on the pending case.

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Inmates were originally refused an incentive payment.

Sarah Tew / CNET

Anyone who has passed away since the last federal tax return

The IRS “sent nearly 1.1 million payments totaling nearly $ 1.4 billion to deceased persons,” said the US Government Accountability Office, before requesting the money back (the process for refund here).

If someone has died since the previous tax return, the current IRS guideline is that they are not currently eligible for a check and their families cannot keep the money on their behalf – for example, if the deceased filed taxes together with a spouse. If a check is inadvertently addressed to them, the IRS expects the family to return the payment, although they may not be legally required to do so.

It is unclear whether families can collect a second stimulus check on behalf of a person who has passed away, for example as a result of COVID-19. However, there is precedent for this. According to ProPublica and CNBC, families could keep the stimulus from the 2008 economic crisis in the event of death.

There may also be exceptions, such as if the deceased died in 2020, Janet Holtzblatt, a senior fellow at the Tax Policy Center, said in April. The Bureau of the Tax Service has canceled outstanding incentive payments to anyone who does not qualify – including those who died before the checks were received.

If you still don’t know if you are eligible for the next incentive payment, find out here who may qualify for a second stimulus check. Also, you may not receive an incentive if you move and forget to report a change of address. Plus, here’s when the IRS can send the second check, if approved.


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