After President Donald Trump approved and signed the new $900 billion relief package, stimulus checks are now being deposited in bank accounts all across the country. The stimulus bills will help 60% of the Americans who have been struggling financially because of the coronavirus pandemic. However, millions of people are still not eligible for the payment.
The checks are worth $600 for every eligible adult, which is half of the $1200 stimulus – the first relief package released in March 2020. Children are set to receive $600 as well, which is $100 more than the amount provided in March.
President Donald Trump as well as the Democrats have objected that the payments were too small and that they should be raised to $2000. However, Senate Majority Leader Mitch McConnell rejected this demand. The Republicans are also against this move because they are concerned about fiscal debt. According to Wall Street analysts, it is unlikely that this demand will be considered.
Several issues that were raised about the previous stimulus package were corrected this time around. Mixed status American families, with an immigrant spouse who does not possess a Green Card, were not granted these stimulus checks in the March relief package. However, this time around they are included as the recipients.
The income guidelines for the eligibility criteria have been changed this time around. The minimum income criteria have been raised as compared to the March CARES Act, and several middle-class families will not be considered.
Many other groups who were excluded from the March bill will not be receiving checks this time around either. This includes dependents who are 17 year-olds and adults who are registered as dependent on tax returns, including college students.
The IRS code for the Child Tax Credit only considers children who are 16 years old or younger as dependents.
Senior citizens and disabled adults are also not included as recipients in the current relief package, even though many families are struggling because of the unprecedented hike in their medical expenses.
In addition to this, single people who have earned more than $87,000 per year won’t be eligible, and married couples with an income of more than $174,000 will also not receive the checks.