Second Stimulus Check: How Can You Get More Money, Reasons You May See Less

By Madelaine D. Oct 21 2020, 07:21 AM EDT

The next stimulus check could either give you a larger or a smaller amount.

Negotiators have a little time remaining to agree on the next round of stimulus package if they want it to happen before the Nov. 3 election. The economic relief package includes a second stimulus check of up to $1,200 per eligible individual.

On Tuesday night, House Speaker Nancy Pelosi said she remains hopeful that they can reach an agreement prior to the presidential election.

Pelosi has been negotiating with Steven Mnuchin, the Treasury Secretary, for several months now. "It will be safer, bigger, and better, and it will be retroactive," Pelosi noted.

Second Stimulus Check: How Can You Get More Money, Reasons You May See Less Dmitry Demidko/Unsplash

There are a few ways that qualified beneficiaries of the second stimulus payment may get more money than the first one. However, there could also be ways that the total amount could be lesser than before.

Here is how the stimulus check may change and how much money you could exactly get, according to CNET:

How you could get more money with a second payment

The second round of stimulus check is expected to follow the first stimulus payment guidelines if approved as part of an economic relief bill. The procedures include changes from the previous proposal, even the latest White House offer.

Most people would likely receive the total amount based on the adjusted gross income or AGI, and other eligibility requirements. Here are some of the situations in which you could receive bigger money on the second payment:

If more people qualified as your dependent: The Democratic proposal expands the definition of "dependent" to include that you can claim on your tax returns.
Changes in the employment status: If your wage drops or you become unemployed this year, which is used to determine your stimulus payment, that could affect your AGI.
Child dependents get more money: Same age restriction for children could be kept in the recent White House proposal, but double the payout to $1,000, as per CNET.
You got married: a change in marital status could result in a larger stimulus check. It depends on several variables, such as your spouse's filing status and your new dependents.

How you could get less money

Meanwhile, here are the possible scenarios of how it could pay out for families.

For most people, the IRS based the amount of the first round of stimulus checks on their 2019 federal tax returns if they have filed. However, they also might file their 2018 returns if they don't have the 2018 returns.

Some Americans who qualified for a stimulus check experienced financial or personal changes after filing that would affect your second stimulus payment. Your next round of stimulus check might become smaller if you:

Have fewer dependents: Congress could keep the CARES Act's restrictive dependent requirements wherein any dependents you claim could be out of eligibility.
Received a higher salary or started a job: a change in your AGI due to wage increase or change in employment status might lower your stimulus check amount.
Owe child support: The government will hold back stimulus money to cover owed child support under the CARES Act.