STIMULUS CHECKS

$1,200 stimulus check vs $2,000 payment: what are the main differences?

We outline main differences between $1,200 payment already passed into law under the CARES Act and the proposed $2,000 payment under the HEROES Act.

$1,200 stimulus check vs $2,000 payment: what are the main differences?

As part of the CARES Act passed into law in mid-March, unemployed Americans have been receiving one-off $1,200 stimulus checks, with over 150 million individuals having already received the payment, while around 35 million others are still waiting.

As the IRS works to get the rest of the checks out over the coming weeks, the major debate among Republicans and Democrats is what will replace the $1,200 stimulus checks come July. With many U.S. citizens likely to struggle due to the coronavirus pandemic for a long time to come, what both sides do agree on is that a bill must be passed that will see out-of-work Americans receive a second round of payments. What they do not agree on is how much and what the nature of the payment would be.

In May, the Democrat-proposed HEROES Act was passed by a blue-majority congress. Under the act, Americans would receive a stimulus payment to the tune of $2,000 for at least six months. However, the bill does not have the support of the Republican-controlled senate, where it has already been deemed “dead on arrival”. Below, we outline some of the main difference between $1,200 payment already passed into law under the CARES Act and the proposed $2,000 payment under the HEROES Act.

Three main differences between the $1,200 and $2,000 stimulus checks

1. The $1,200 payment is a one-time payment, while the $2,000 payment would see eligible Americans receive a monthly payment for a minimum of six months.

2. The income limits for the $1,200 payment for individuals is $75,000; for the $2,000 payment it would be $130,000. In both cases, the respective figures are doubled for couples.

3. Unlike with the $1,200 stimulus payment, under the proposal for the $2,000 payment, college students and persons with disabilities would be eligible to receive these payments regardless of the fact that they are being claimed as a dependent on another person’s taxes or not.