HEROES Act

27 May 2020

The HEROES Act: the second round of stimulus checks

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Congressional efforts to pass another economic stimulus package officially began when the House of Representatives passed the Health and Economic Recovery Omnibus Emergency Solutions (HEROES) Act. There were a lot of buzz about $2,000 stimulus checks each month. In fact, the second round of stimulus checks called for in the HEROES Act looks a lot like the first round of $1,200 checks authorized by the CARES Act.

Like the first round of stimulus checks, the HEROES Act calls for a $1,200 payment to each eligible American ($2,400 for married couples filing a joint return). However, you would get an additional $1,200 for each dependent (for up to a maximum of three dependents). So, for example, a married couple with three children could get up to $6,000.

For the first round of stimulus checks, an extra $500 is allowed for each child age 16 and younger. So, if enacted, the HEROES Act plan would provide more money for each additional family member. Besides, it would allow these extra payments for older children, elderly parents living with you, or anyone else who you support and can claim as a dependent.

HEROES Act
The second round of stimulus checks called for in the HEROES Act looks a lot like the first round of $1,200 checks authorized by the CARES Act. Why is that? (Source: Forbes)

Understand what is to know about the HEROES Act

Again, like the original stimulus checks, the HEROES Act stimulus payments would be phased out for people with higher incomes. Payments would gradually decrease to zero if you’re single, for instance. Or if you are married, filing a separate tax return, or a qualifying widow(er) with a modified adjusted gross income (MAGI) above $75,000. 

Nonresident aliens would not qualify for a second-round stimulus check either. This exclusion applies to the first round of payments too. Generally, a nonresident alien is someone who is not a U.S. citizen. It also doesn’t have a green card and isn’t physically present in the U.S. for the required amount of time.

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For the first round of stimulus checks, you must have a Social Security number to get a payment. However, you would only need a Taxpayer Identification Number (TIN) to get a second-round payment under the HEROES Act.

By allowing TINs instead of a Social Security number, the HEROES Act would allow certain people who are not U.S. citizens to receive a stimulus payment. However, they can’t get a Social Security Number in theory. The House of Representatives, which is controlled by a Democrat majority, is evaluating the proposal. They are one step in the journey from bill to low. However, it is not guaranteed that the second bill will clear its next stage. We are talking about approving the second stimulus check by the Republican-controlled Senate.

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