Yesterday, the Senate Republicans rolled out their first proposal for the second stimulus package. While it contains various components for different parts of the economy, the part that most of the readers of these posts here want to know about is the stimulus money that will be directed to Americans. Here is a calculator that can help you find out how much!
The New Stimulus Proposal
Senate Proposal of the Heals Act (Health, Economic Assistance Liability Protection and Schools Act)
First of all, this is not something that has been a guaranteed bill yet. But, it is a major step in the Senate with this proposal that is very similar to the first stimulus package with some a major improvement.
The Democrat-controlled House will still need to do their version but there are many points from their own proposal a couple of months ago and this proposal that could be compromised on while still giving Americans the money below.
For one thing, the Democrats had already wanted to give amounts that were similar to the Republican proposal with the big exception that Democrats want dependents to receive $1,200 while the Republican proposal is for the same $500 per dependent as before. The Democrat proposal would cap the total number at 5 people in a family. Both sides have agreed to the $1,200 number for primaries, however.
One thing for sure – there will not be a travel tax credit as previously discussed as this has been left out from both sides in discussions.
What Is Better About This Proposal for Dependents?
In the CARES bill, there was an unfortunate issue for dependents – any claimed dependent 17 or older was not eligible for the $500 dependent money or to even be able to file for their own $1,200 check.
In the Heals Act, this has been changed to no cap on ages for dependent. That means that if you have claimed someone as a dependent, regardless of age, you will receive an amount of $500 for that person. This will help with many caregivers that missed out earlier.
If This Was Passed Into Law, How Much Would You Get?
Jasmine Mah, who developed the previous calculators that were found in various posts here, sent me the latest one today (developed along with Bogna Haponiuk). This calculator would show you how much you could potentially get if this proposal became a bill and was passed into law.
One important point – many people were still waiting for their 2019 tax returns to be processed by the IRS so their previous stimulus money was based on 2018. At this point, many people have had those 2019 returns processed so it will be those returns that any future stimulus payment would be based on.
Will this part of the proposal pass? I think it stands a good chance, even though there are many legislators on both sides that do not want a new stimulus bill or that do not like the things that are in the proposals that have been made. But, at the end of the day, there are likely many more legislators that do want to get more money out into the economy and fast.
With the House expected to delay their summer recess (which is scheduled to take place as of July 31) until such a bill could be taken up and passed and the Senate looking at a recess on August 7, we could see a new bill very soon. If not before recess, it will likely look much different when everyone comes back in September, given how close that will be to the election.