Second Round of $1,200 Stimulus Checks Announced With HEALS Act, Reports Bambridge Accountants New York

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Jul 28, 2020, 00:00 ET

NEW YORK, July 28, 2020 /PRNewswire/ -- Republicans have proposed a second $1,200 stimulus check for Americans and $500 for each dependent, reports the Enrolled Agents and tax advisers Bambridge Accountants New York.

The HEALS Act (Health, Economic Assistance, Liability Protection, and Schools Act) includes:

A second $1,200 stimulus check for all U.S. citizens worldwide, on the same income limits as the first stimulus check
Additional $500 for each dependent
Unemployment benefits will still be enhanced, but these will drop from $600 to $200 a week
Return-to-work bonus of $450 a week
Help for renters to stop evictions

Stimulus Checks

The $1,200 payments will follow the same income thresholds as the first payments earlier this year.

Individuals will receive the full $1,200 if their income is up to $75,000 - above that level, they will still receive a partial payment up to income of $99,000.

Joint filers will receive $2,400 if their income is up to $150,000 - above that level, they will still receive a partial payment up to joint income of $198,000.

There will also be $500 for each dependent (up to a maximum of three dependents). Unlike the first stimulus payments for dependents, there is no age limit.

When Will the Stimulus Payments Arrive?

Treasury Secretary Steven Mnuchin said that Republicans have the backing from President Trump to ensure that the payments would be made in August 2020.

The President's acting chief of staff, Mark Meadows, added, "The President has been very clear. He wants to make sure that the American people have what they need during this unprecedented time."

Are U.S. Expats Eligible for Stimulus Checks?

Like the first payments, the $1,200 checks are for all Americans, including U.S. expats living abroad. Once the 2018 and 2019 U.S. returns have been filed, the payments should automatically be sent to U.S. citizens.

Is the Stimulus Check Taxable?

No - the IRS have confirmed that the stimulus checks are not treated as income and taxpayers do not have to pay tax on the amount. Also, it does not affect income when someone applies for federal government assistance.

What Happens If You Owe Tax or Have a Payment Plan With the IRS?

Americans will still receive their payment even if they owe tax or have a payment plan with the IRS. If they owe child support, then the payment can be offset.

Bambridge Accountants has offices in London and New York and offers reasonable flat fees for the Streamlined Foreign Offshore Procedures and annual U.S. expat tax preparation services - plus IRS and FATCA queries for Americans overseas.

Contact: Alistair Bambridge, [email protected], +1 646 956 5566

www.bambridgeaccountants.com

Related Images

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HEALS Act 2020
HEALS Act stimulus check

Related Links

U.S. expat tax

Stimulus payment August 2020

SOURCE Bambridge Accountants New York