Coronavirus and Your Money

A Third Stimulus Check? Biden Says $2,000 Checks Will "Go Out the Door" if Democrats Win in Georgia

While campaigning in Georgia on Monday, President-Elect Biden made a bold statement about a third-round of stimulus checks.

Is a third stimulus check in your future? And, if so, how much would you get? According to President-Elect Joe Biden, if Democrats Jon Ossoff and Rev. Raphael Warnock beat incumbent Republican Sens. Kelly Loeffler and David Perdue in Tuesday's Georgia runoff elections, then "$2,000 checks will go out the door." This statement, made during a campaign event for Ossoff and Warnock in Atlanta on Monday, is the strongest indication yet that Biden will push for a third stimulus check after his inauguration. (As of early Wednesday morning, Warnock was declared the winner of his race, but the contest between Ossoff and Perdue was too close to call.)

It was just a few days ago that Senate Republicans blocked a vote for a House-passed bill (the CASH Act) that would have increased second-round stimulus checks from $600 to $2,000. The CASH Act would have also (1) bumped the extra per-child second stimulus check amount from $600 to $2,000, and (2) allowed the extra payment for any dependent, regardless of age, rather than just for children age 16 or younger.

Senate Majority Leader Mitch McConnell called the CASH Act "socialism for the rich" because it would have authorized payments to wealthy people who weren't impacted by the pandemic, instead of only targeting people in need. Since Republicans currently control the Senate, he was able to avoid a vote on the bill, which was passed last week by the House. Without a vote, the CASH Act expired at noon on Sunday when the 116th Congress ended.

However, if both Ossoff and Warnock win their respective Georgia runoff elections, Democrats will take control of the Senate and McConnell will no longer determine which bills get a vote in the Senate. With Democrats in control of the House, the Senate, and the Executive branch (after Biden is inaugurated on January 20), a third-round of stimulus checks seems likely. There were even a number of Republican Senators that came out in favor of $2,000 stimulus checks last week – including both Sens. Loeffler and Perdue (Ossoff and Warnock also support $2,000 checks). So, if a vote is allowed on another bill authorizing $2,000 stimulus checks, it has a fairly good chance of passing.

[Stay on top of all the new stimulus bill developments – Sign up for the Kiplinger Today E-Newsletter. It's FREE!]

Second Stimulus Checks Are Being Sent Now

In the meantime, the IRS started sending out second stimulus checks last week. Your second-round payment will be for $600, plus $600 for each child age 16 or younger. If your 2019 adjusted gross income is $75,000 or less for single filers and $150,000 or less for married couples filing joint returns, you'll generally receive the full amount of your second stimulus check. For Americans with income above those amounts, the payment amount is reduced. (To see how much you will get, use our Second Stimulus Check Calculator.)

Most payments will be by direct deposit. However, if the IRS doesn't already have your bank account information, you'll receive either a paper check or a debit card in the mail (assuming you're eligible to receive a second stimulus check).

If you don't receive a second stimulus check (or a first one), you'll be able to claim the amount you should have received as a "recovery rebate" credit on your 2020 federal income tax return. This will lower your tax bill and possibly trigger a refund. (The IRS is expected to start accepting 2020 tax returns in late January or early February.)

Most Popular

5 Best Dow Dividend Stocks to Buy Now
blue chip stocks

5 Best Dow Dividend Stocks to Buy Now

This mini-portfolio of blue-chip dividend payers is well-positioned to both generate income and hold up to headwinds for the rest of 2022.
June 27, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
Top Bear Market Tips from 10 Financial Advisers
investing

Top Bear Market Tips from 10 Financial Advisers

When a bull market turns into a bear market, it can be hard to know what to do. Take comfort in the guidance of 10 financial professionals.
June 30, 2022

Recommended

Retirees, Make These Midyear Moves to Cut Next Year's Tax Bill
Tax Breaks

Retirees, Make These Midyear Moves to Cut Next Year's Tax Bill

Save money next April by making these six hot-as-July tax moves.
July 1, 2022
Biden Proposes Gas Tax Holiday, Urges States to Do the Same
Tax Breaks

Biden Proposes Gas Tax Holiday, Urges States to Do the Same

The proposed three-month federal gas tax holiday would bring down the price of gasoline slightly, while state gas tax holidays could reduce the price …
July 1, 2022
IRS Increases Mileage Rates Because of High Gas Prices
Tax Breaks

IRS Increases Mileage Rates Because of High Gas Prices

The higher mileage rates, which are used to calculate certain tax deductions for business and other uses of a car, took effect on July 1.
July 1, 2022
How 13 Types of Retirement Income Get Taxed
retirement

How 13 Types of Retirement Income Get Taxed

When you're planning for retirement, it's fun to contemplate all the travel and rounds of golf ahead of you, but don't forget about taxes.
June 30, 2022