If You Make More Than This, You May Not Get a Second Stimulus Check
The second round of payments could go out in weeks—but the salary requirements may be changing.
The COVID-19 pandemic has created an unprecedented economic crisis in the U.S. But with unemployment at a record high and an unclear path forward on reopening major sectors of the economy, millions of Americans are also feeling the pressure of personal financial woes. And while the CARES Act distributed approximately 159 million payments of up to $1,200 each in May, Congress is currently debating who will be receiving a second round of payments. Who makes the cut? If you make more than $40,000 a year, there's a chance you may not qualify for a second stimulus check, USA Today reports.
While a bill supporting the second round of payments has already been passed in the House of Representatives, Senate Majority Leader Mitch McConnell is recommending the annual income cutoff be set at $40,000. "I think the people who have been hit the hardest are people who make about $40,000 a year or less," McConnell said on July 7.
Forbes reports that cap would mean about 80 million Americans would be eligible to receive a second stimulus check, according to the American Enterprise Institute. That's about half the number of Americans who received a stimulus check in May.
The original bill passed by House Speaker Nancy Pelosi says that anyone earning less than $75,000 a year should receive a second stimulus check. That's the same cap used in the initial round of payments for anyone to receive a full payout as a single tax filer.
"I think there are many families, depending on size of family and so many different things, that the $40,000 would have to be explained, justified, and the rest," Pelosi said last week at a news conference, according to Forbes. "But I think families making over $40,000 probably need assistance. Again, just depending on their family situation."
Many have argued that the second round of payments is needed as the $600 per month enhanced unemployment benefits are set to expire at the end of July. And for more on where the economy may take a hit, check out 7 States That Are Headed for a "Full Shutdown."