Second Stimulus Check: Here Are the Essential Things to Know About the Possible New Payment

By Madelaine D. Sep 26 2020, 09:56 AM EDT

A second stimulus check is back on track as the White House and Democratic negotiators said they would return to the table to resume talks on an additional round of economic aid.

The move comes at a political upswell time that encompasses the upcoming presidential nomination and debates to replace Supreme Court Justice Ruth Bader Ginsburg, as per CNET.

There are a lot of ins and outs to know about the new stimulus bill, but let's focus on the essential things you need to know about the next possible stimulus payment.

Second Stimulus Check: Here Are the Essential Things to Know About the Possible New Payment The second stimulus check is back on track as the White House and Democratic negotiators said that they will return to the table to resume talks on the additional round of economic aid. Colin Watts

On Thursday, Treasury Secretary Steven Mnuchin said he and House Speaker Nancy Pelosi agreed to revive talks on the new COVID-19 relief package.

Its discussion has been on hold for over a month despite strong bipartisan support for a second stimulus check and other measures in the relief bill. Lawmakers are looking at bringing the new bill for a vote before October 2.

The IRS could speed up the process of sending checks

It took 19 days for the Internal Revenue Service (IRS) and Treasury Department to send the first round of stimulus payments. Mnuchin said he could send them much faster once a new legislation is signed.

Mnuchin said in August: "I could get out 50 million payments quickly and start making payments a week after a bill is signed."

Eligibility rules could change

Eligibility requirements are subject to change, although the second stimulus check would likely follow the same guidelines as the first. If a new stimulus bill redefines who counts as a qualifying dependent, it might even benefit your family.

There's a process to who receives the check first

The IRS and the Treasury Department took several approaches that included physical checks, direct deposit, and prepaid EIP cards to get the economic relief money out as fast as possible to the eligible beneficiaries. The following is how the nearly 160 million payments break down, according to the numbers from the Treasury Department last June:

Direct deposit: 75% (120 million)
Paper check: 22% (35 million)
Prepaid EIP debit card: 3% (4 million)

The fine print can get fast but complicated

While some situations are simple, other complications about the beneficiaries' requirements could make it unclear if you are eligible.

The IRS doesn't consider stimulus money to be income, and a payment you get this year will not reduce the refund in 2021 or increase the amount you owe when you file your 2020 tax return. If you qualify for a lower amount in 2021, you don't have to repay part of your check.