On December 27, 2020, President Donald Trump signed a $900 billion economic relief package. What does this mean for you? First, the good news. The IRS has already started to send out the Here’s everything we know about the second stimulus package.
How much is the second stimulus payment?
In the second round of stimulus payments, you can expect:
- $600 for individuals
- $1,200 for married or joint filers
- Additional $600 per child for those with qualifying children
Who is eligible for a second stimulus payment?
The new stimulus bill made changes to qualifications. In order to qualify for the second stimulus payment, you will need to have earned less than $75,000 (for individuals) or $150,000 (for married/joint filers). The following qualifications are based off 2019 income tax filings:
- Singles who made less than $75,000 will be eligible for the full payment of $600. If your income was higher, stimulus payments will be reduced, hitting zero at $87,000.
- Couples who made less than $150,000 will be eligible for the full payment of $1,200. If your joint income was higher, stimulus payments will be reduced, hitting zero at $174,000.
- If you reported any dependents under 17 years of age you will receive an additional $600 for each child. Click here to see who is considered a qualifying dependent.
Who is not eligible?
- Dependents 17 years of age or older. This includes high school students and college students.
- Undocumented immigrants are not getting checks, because they do not have a social security number, something which is required in order to receive payments.
- Babies born in 2020 because this round of stimulus checks is still based on 2019 income tax filings. However, these parents will be able to receive this money in the future, when they file their 2020 tax return.
How and when will payments be dispersed?
The IRS emphasizes that there is no action required by eligible individuals to receive this second payment. Payments will be made via direct deposit if you have previously provided your bank account information on previous tax filings and benefit recipients should have their information on file with the IRS.
If your bank account information is not on file and you qualify for a payment, it will be sent by mail in the form of a paper check.
As far as when you will see these payments, initial direct deposit payments started to go out on the night of Dec. 29 and paper checks on December 30, 2020. The official payment date is today, January 4, 2021. You should receive your payment by January 15, 2021.
Want to track your second stimulus check? You can use this tool provided by the IRS to track your payment.
For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021.
Updated unemployment benefits
The most recent stimulus bill provides an extra $300 a week in addition to one’s base unemployment compensation benefit through March 14, 2021.
For those who have lost their job, the stimulus bill will provide an extra $300 a week (in additional to the base unemployment compensation) through March 14, 2021. This is an extra 11 weeks past the original December 26, 2020 expiration date. Self-employed people and gig workers who make use of the Pandemic Unemployment Assistance are also eligible for the additional unemployment payments.
Additionally, the package gives a $100 per week additional benefit to those who have at least $5,000 in annual self-employment income, but are ineligible from getting Pandemic Unemployment Assistance because they qualify for regular unemployment benefits.
Interested in learning more? Click here to visit GigSmart’s unemployment resource center to find information specific to your state. Read our Unemployment Guide to learn more about if you qualify and how to apply.
Paycheck Protection Program
The second stimulus bill reopens the Paycheck Protection Program for small businesses. Businesses can apply for a second loan. There are limitations such as company size and revenue lost due to the pandemic. Learn more about the loan and the application process here.
We are here to help
Whether you’re reopening your business or lost your job during these unprecedented times, GigSmart is here to be a resource for both businesses and workers. While you are waiting for your stimulus benefits, it is important to find ways to make extra cash or keep your business operating.
Find a full/part-time job, temporary Gig or side hustle that you can do to bring in extra cash. Download the Get Gigs app for iOS or Android today to get started. Put your skills to good use to make some extra cash across a wide range of industries from construction to food service and landscaping to delivery.
Hire workers to keep business afloat. With over 250,000 workers on our platform today we can help you find you the right workers to keep your business running. Download the Get Workers app for iOS or Android, or create a free account here.
Update: On March 11, 2021, President Biden signed a $1.9 trillion American Rescue Plan. The IRS has already started sending the third round of stimulus checks to eligible Americans and pandemic unemployment assistance has been extended. Read more here.