Stimulus check: will there be a second round in May 2020?
The first round of stimulus check payments started being distributed by the Internal Revenue Services in April to help millions of Americans during the outbreak.
More than 80 million Americans have received their stimulus check payment of $1,200 from the Internal Revenue Services (IRS) to aid them financially through the coronavirus pandemic. This came after the government approved a $2 trillion relief package to counter the economic setbacks of the crisis.
The IRS started sending the $1,200 payments as early as mid-April and now, as we enter May, not everyone who is eligible has received their check, and not everyone who has received a check knows what it’s for. And remember, the deadline is very close.
You might have heard the payment called a 'recovery rebate', instead of a stimulus check. That’s because it’s technically a tax credit that is set to appear on the return you'll file for the 2020-21 tax year.
While tax returns are usually granted after you file your taxes, the government has brought forward the credit to curb the impact Covid-19 has inflicted on American businesses and incomes. These stimulus checks may help those who have lost their job - with some questioning their rights to stay at home - or are struggling financially in the face of lockdown.
Will there be a second round in May?
It has become a common question if there will be a second round of stimulus checks in the month of May, as $1,200 might not cover the expenses for people who have lost their jobs or have faced additional financial obstacles in the past weeks.
Financial technology firm SimplyWise found that 63% of Americans will require a second stimulus check within the next three months to pay bills. Congress is working on a follow up to its first relief bill that should be completed by 4 May. With this information, the House could push to enact a second round of stimulus checks, or even a monthly payment system.
“We could very well do a second round of direct payments,” President Donald Trump said while answering press questions earlier this month. “It is absolutely under serious consideration.”