A second stimulus check isn’t part of the most recent COVID-19 relief package, but already supporters of the direct payment are calling for its return. We can’t say for sure if negotiations could successfully add in another check or — perhaps more likely — table the discussion for yet another stimulus package in 2021. What we know now is that when and if Congress signs off on another cash payment for individuals and families, not everyone will get the entire sum.
See, that $1,200 is the maximum cap per adult, with more money for those with eligible dependents. But if the stimulus qualifications change in another bill, or if your life circumstances have altered, the amount of money you could see in another check could potentially be smaller.
For now, all we can do is watch and wait. But if another check does get the green light, the first wave of stimulus payments could come quickly. Here’s what you need to know about who could see a smaller direct payment (or none at all) and why. This story was recently updated with new information.
One fact to know about stimulus checks
In the first round of stimulus checks sent out starting in March, the IRS for the most part used your most recent federal tax return (2019 0r 2018) when calculating your total payment (people who don’t ordinarily file tax returns were in many cases eligible as well). But some people who qualified for a check have experienced personal or financial changes after filing that could affect a future payment one way or another.
Did you start a new job or earn more money this year?
Your adjusted gross income, or AGI, is a term normally used for the IRS’ yearly tax return to describe your total income, including assets (like stock sales, credits and deductions or an inheritance, for example) that fall outside your usual paycheck. The first stimulus check, and most likely the second, will cut you off if your AGI goes above a certain income limit.
There’s a direct correlation between your tax status and stimulus checks, and…
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