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Stimulus check 2020: Round 2, eligibility, application, schedule and direct deposit

Stimulus check 2020: Round 2, eligibility, application, schedule and direct deposit
(Image credit: Getty Images)

Stimulus check payments are finally arriving in some people's bank accounts or mailboxes. But you might be curious where yours is, when it's coming or whether you qualify. And we don't blame you for wondering if a stimulus check 2 (or a second round of checks) is happening.

Once the government passed a $2 trillion relief package to assist the economic setbacks of the global pandemic, the IRS began sending stimulus check payments to those who meet the eligibility requirements.

But it's unclear when everyone will receive their payment, even if they're eligible. Checks take quite some time to send via mail, and with the tax returns deadline pushed back the IRS is still processing paperwork. 

You might have heard the payment called a “recovery rebate,” instead of a stimulus check. That’s because it’s technically a tax credit that’s set to appear on the tax return you'll file for the 2020-2021 tax year.

While tax returns are usually granted after you file your taxes, the government has brought forward the credit to curb the impact COVID-19 has inflicted on American businesses and incomes. These stimulus checks of up to $1,200 may help those who have lost their job or are struggling financially in the face of lockdowns. 

As the initial wave stimulus checks roll out, the conversations about a second round have emerged. Here’s what we know about it, plus answers to all the other questions you might have about the IRA’s coronavirus payments.

Stimulus check application: Where’s my stimulus check?

There's been a few hiccups with sending stimulus checks. The system is working slowly due to overwhelmed websites and call centers fielding queries about payment destinations. Every week the IRS sends out batches of checks to those who are eligible.

But that doesn’t everyone who is eligible has received theirs yet. According to The Washington Post, some checks may not arrive until September.

You can check the status of your stimulus check using a neat tool the IRS developed. When you fill out a short form on the IRS Get My Payment app, you should be able to view the status of your stimulus check if you're due to get one. 

Here’s how it works: Go to the IRS Get My Payment app website . Click 'Get My Payment' to enter the portal. Click 'OK' on the authorized use page after you've reviewed the terms. Fill out your Social Security number (SSN) or Individual Tax ID (ITIN), your date of birth (MM/DD/YYYY), your street address and your ZIP code. Click 'Continue.'

Do you need to sign up for your stimulus check?

No, you do not need to sign up for your stimulus check. The government should have a record of how much you make each year based on your tax filings.

That said, if you haven't filed your taxes for 2018-2019, the IRS won't have your income in its system. Without knowing how much you make, the government cannot determine if you're eligible for the stimulus check. 

For those who are not required to file tax returns, you can use the IRS website to enter your payment information. Click here if you're considered a non-filer.

Stimulus check eligibility: Do you get one?

Stimulus check eligibility depends on how much you earn on the books each year. If you are a U.S. taxpayer that earned less than $75,000 a year according to your most recent tax return, you qualify for the full $1,200 payment.

Married couples who file joint tax returns will receive a $2,400 payment if they have a total income of $150,000 or less.

Note that people on Social Security support don’t need to apply for the payment. Unfortunately, in the rush to get out stimulus checks as quickly as possible, some have been sent to people who have died, according to CNN. And the IRS says those payments need to be returned. 

Keep in mind that you must file your taxes to quality for the stimulus check. The IRS has extended the usual April 15 deadline to July 15, but the sooner the government has your 2018-2019 tax information the sooner you can get your payment.

Stimulus check calculator

While individuals who earn more than $99,000 or childless couples earning $198,000 won’t receive any payment, there are many who earn somewhere in between. As long as they've filed their taxes, they will receive prorated amounts.

What does that mean? Well, you'll receive incrementally less than $1,200 as your annual earnings approach $99,000. Check out our guide on using the stimulus check calculator to figure out how much relief you'll get.

Stimulus checks for children

For every child or dependent under the age of 17 (16 or younger), parents who meet the above eligibility requirements will receive an additional $500 economic impact payment.

However, if the child was born or adopted in 2020, parents will not be supplemented because the payments are based on 2019 tax returns. That said, the IRS is allowing new and payment-eligible parents to claim their child on next year's returns for retroactive compensation.

Stimulus check schedule: When you should get yours

The IRS started mailing out stimulus checks the week of April 13, sending paper payments to more than 5 million eligible taxpayers. It completed the payments of millions more who had set up direct deposit.

Paper stimulus checks will continue to be sent out every week, at the rate of about 5 million per week. The "schedule" depends on your income, meaning how much you make according to your recent tax return will control when your check is sent.

The IRS has thus far provided three updates as to how many stimulus checks it has sent out, as well as the total amount of those checks.

April 24: 88 million checks, $158 billion
May 8: 127.5 million checks, $217 billion
May 22: 152 million checks, $258 billion

The IRS is sending out the $1,200 paper checks for those with the lowest incomes first, and predicts it will take up to 20 weeks to fulfill all the payments. 

If you need your stimulus check sooner, you can still set up direct deposit.

Stimulus check notifications from USPS: Know when your payment arrives with Informed Delivery

There's no need to stalk your mailman while you wait for your stimulus check — the USPS offers a delivery notification service that can tell you exactly where your payment is in transit, and when it will arrive. 

Using the free Informed Delivery tool, you can track your stimulus check once its been processed by the postal service. Like with items you've ordered online, Informed Delivery will notify you when the envelope containing your payment from the IRS has landed in your mailbox.

Here's how it works: Go to the USPS's Informed Delivery page and click 'Sign Up for Free.' Enter  your mailing address. Click 'Continue.' If your stimulus check has been processed and is heading towards your address, you're eligible to set up an Informed Delivery account.

Create a username, password and personal security questions. Provide your contact information and click 'Continue.' Click 'Verify identity online' or 'Request invitation code by mail' to verify your account. It's faster and more efficient to do so online, although you can have a code mailed to you as well.

When your account is confirmed, you'll see an email every Monday through Saturday from the USPS with the latest update on your stimulus check delivery. You can also use the Informed Delivery app (iOSAndroid) to track your payment.

Stimulus check debit card: How it works and what to look for

According to the U.S. Treasury Department, about 4 million taxpayers will receive a prepaid debit card from the IRS rather than a physical paper check.

If you don't have a bank account and don't earn tax refunds from the government, the stimulus check debit card will help make it possible to support yourself.  The cards can be used to shop at any story that accepts Visa, but you can also get cash from certain ATMs. Just be careful not to throw the card away.

According to a report by NBC News, some Americans are accidentally throwing their stimulus debit cards out. The reason for this is that the payments come in regular white envelopes that some may confuse with junk mail or unwanted credit card offers. The envelopes don’t have any federal markings and simply say “Money Network Cardholder Services.”

According to an FAQ posted by the IRS, the debit cards bear the Visa logo and are issued by MetaBank. In addition, there should be a letter included with the card that says it is an Economic Impact Payment Card. There will also be a link to for more info. 

After receiving the card, taxpayers will need to call 1-800-240-8100 to verify their identities. After setting your PIN and signing the back of the card, you should be able to use the stimulus payment card as you would any other debit card.

Stimulus check direct deposit deadline: How to set it up

By setting up direct deposit for your stimulus check you’ll get your check much faster than if you wait for it to come via snail mail. However, if you haven't set it up already, it's too late now. You'll need to wait on the mail for your check.

Mailed checks will start arriving later in May and into June. If a second round of stimulus checks happens, direct deposit might open up again.  

Here’s how it works: Go to the IRS Get My Payment app website. Click Get My Payment. Click OK. Enter your Social Security Number (SSN), date of birth (you can manually write it in, in the MM/DD/YYYY format), street address and ZIP/postal code. Then click Continue.

Click Enter Bank Information. Fill out your 2018 or 2019 tax return information, with your Adjusted Gross Income. Enter your banking information for the deposit. Your routing number is the 9-digit string in the bottom left corner of your checks. The bank account number is to the right of the routing number. 

Do you have to pay taxes on your stimulus check?

The short answer is no, you do not have to pay taxes on your stimulus check.

The stimulus check is recognized a tax credit, therefore it is not considered taxable income. Rather, no matter how much your payment is worth, you can deduct it from the total taxes you owe next year.

It will be reflected on your 2020-2021 tax return in your total refund amount, but you won't collect it then because you've already received the advance. If you haven't received your payment, check that you're eligible and have fulfilled the requirements.

What to do if you don't get your stimulus check

If you get a 'payment status not available' message when checking your stimulus check status, there could be multiple reasons for that. The easiest answer is that you might make too much money to qualify. 

As reported by CNN, another reason for receiving the payment status not available message is that the IRS could still be processing your 2019 tax return. The agency might also be processing the non-filer form that you submitted online. Also keep in mind that the IRS simply hasn't uploaded your data to the tool yet.

You can now call the IRS to get more answers about the status of your stimulus check. The IRS Economic Impact Payment phone number is 800-919-9835. You can call to speak with a live representative if you still have questions after referencing the IRS's website. 

Stimulus check round 2: Is a second payment coming?

On May 15, the House of Representatives passed the Heroes Act, a bill that would allow for a second round of stimulus checks while also giving financial aid to frontline workers. The bill passed by a vote of 208-199, but still needs to be approved by the Senate. If the Senate passes the bill, it's possible that a stimulus check 2 could arrive in the next few months.

President Trump seems open to a second round of payments. As reported by CNBC, Trump said, “I think we’re going to be helping people out” and “getting some money for them." He added that the U.S. could take “one more nice shot” at a stimulus payment. 

But what about a monthly stimulus check? A report in Forbes says that a bill to provide monthly payments of $2,000 to Americans within a certain age and income bracket is "gaining steam" with some congressional supporters. The bill was put forth by Rep. Time Ryan (D-Ohio) and Rep. Ro Khanna (D-Calif). 

However, it's possible that the next wave of stimulus check relief could be the last one. Speaking to reporters in late May, Senate Majority Leader Mitch McConnell told reporters that Congress is looking into a "final" package.

"We're taking a look at a fourth and final bill," said McConnell, according to CNBC. He says the decision will be made in "about a month," with the amount based on current financial needs and not "where we were three months ago."

Monthly $2,000 stimulus check: Is it possible?

Forbes reports that a bill that proposes monthly payments of $2,000 to eligible taxpayers is "gaining steam" with some congressional supporters. The House bill was put forth by Rep. Time Ryan (D-Ohio) and Rep. Ro Khanna (D-Calif). 

Sens. Kamala Harris (D-Calif) and Bernie Sanders (D-Verm) lead another in the Senate bill that would send $2,000 to every U.S. citizen each month until the pandemic ends.

Despite both the House and Senate working on monthly payment bills, there could be too many roadblocks for either to pass. Not only would $2,000 create an enormous expense for the government, but it would be difficult to identify those who truly require financial support.

Best ways to spend your stimulus check

If you're fortunate enough to be researching the best ways to spend your stimulus check, you'll want to put the payment to good use. But how to spend your stimulus check depends on your situation, and whether you have enough emergency savings.

Unless you already have 6 months worth of emergency money saved, consider depositing your stimulus check for a rainy day. You'll be gland you have some cash on hand when an unexpected expense comes up.

Confident your savings is padded enough? Examine your debts. If you're dealing with any high-interest debts, specifically from credit card companies, try to pay them back in full. This will help your credit score long term.

Once your savings and debts are in order, and you're looking to get that $1,200 off your hands, you can invest in stocks, bonds, or mutual funds. You could also support local businesses, or donate to those in need. It entirely depends on your circumstances, so weigh your choices wisely.

According to a report in MarketWatch, researchers have found that many of those who have received stimulus payments are using it to pay rent and bills, as well as for food and non-durable goods. The non-durable category includes such supplies as laundry detergent, paper and other items with a shorter life span. 

Stimulus check for deceased: How to return it 

In several instances, the IRS has sent stimulus checks to people who are deceased. This week, the agency amended its FAQ page to direct taxpayers about what to do if you've received a payment for someone who has passed.

According the IRS, a check sent to a deceased person must be returned or repaid to the IRS, even if that person has died recently. Here is how to repay the stimulus check, even if you've already cashed it or you received it via direct deposit. 

As for joint taxpayers, this is the IRS's guidance: "Return the entire Payment unless the Payment was made to joint filers and one spouse had not died before receipt of the Payment, in which case, you only need to return the portion of the Payment made on account of the decedent. This amount will be $1,200 unless adjusted gross income exceeded $150,000."

Stimulus check scams and warnings

For any additional stimulus check inquiries or concerns, you should visit the dedicated IRS website. The IRS will not email or text you updated about your payment, so if you received any correspondence recently in regard to stimulus checks, it’s likely a scam. Use precaution when vetting suspicious messages, and be careful not to click on any links.

Check out our guide to COVID-19 scams for more tips to keep yourself (and your money) safe during these times.