Second Stimulus Checks: Families Can Get as Much as $4,400 as Early as October 12

By M.G. Alison. Sep 26 2020, 01:17 AM EDT

Should the second stimulus checks be sent out next month, families could get as much as $4,400 in COVID-19 relief aid.

New hope has been injected into the second stimulus checks after Treasury Secretary Steven Mnuchin and House Speaker Nancy Pelosi agreed to resume formal talks.

Unlike the last time, there seems to be a progress as Pelosi said the Democrats would draft a new COVID-19 relief bill in the range of $2.2 trillion. They are also looking at bringing the new bill for a vote before October 2.

While it is unclear what provisions will be included in the new Democratic bill, there have been hints that it will include stimulus checks, additional unemployment and rental assistance, small business aid, and funding for cities and states.

Should another COVID-19 relief aid legislation be passed, it will most likely include second stimulus checks. As to how much, it will largely depend on what will be approved. However, the computation and requirement will most likely be the same as those in the CARES Act.

It would depend on a number of factors, such as the Adjusted Gross Income (AGI), on the number of dependents, and joint and independent filing of tax returns among spouses.

Most likely, the difference in the amount of stimulus checks between the CARES Act and the new COVID-19 relief aid legislation will be on the dependents basing on the provisions provided by the proposals of the Democrats and Republicans.

The Republicans' HEALS Act still provides stimulus checks of $500 per dependent regardless of their age. The Democrats' HEROES Act, on the other hand, will give $1,200 per dependent but only up to three dependents per household.

The previous CARES Act provided $500 per dependent below 16 years old. And just like in the CARES Act, individuals will still get stimulus checks of $1,200, of course, depending on their AGI. It will be adjusted as the AGI goes up.

Thus, a single individual with an AGI of $55,000 could get a second stimulus check of $1,200. A household whose head had an AGI of $80,000 and one dependent will get an estimated amount of $1,700.

A household whose heads earn a combined $110,000 with two dependents will get an estimate check of $4,400. However, these are just estimates as we still do not know what new COVID-19 relief package will be approved, but this can serve as a guide for computations.

Also, the Internal Revenue Service (IRS) may follow a different computation. If an individual's banking details are already provided to the IRS, that the person is registered for direct deposits, they would be the first ones to get the second stimulus checks.

Mnuchin said as soon as a new legislation is approved, the IRS would be able to send out the first checks within the week of approval.

With the Democrats hoping to get their new bill voted on October 2, and everything goes smoothly, those eligible may already be getting their second stimulus checks by the middle of October.

Aside from direct deposit, those eligible can also get their second stimulus checks via mailed paper checks or via the Economic Impact Payment (EID) card.