HomeNewsIRS Stimulus: Are Monthly $1,200 Checks Going to Happen?

IRS Stimulus: Are Monthly $1,200 Checks Going to Happen?

by Michael Freeman

Since COVID-19 began spreading, Americans have received three stimulus checks to aid struggling families and help the economy. It’s possible a fourth round of checks might come in the immediate future.

However, it’s also possible Americans would instead be receiving stimulus checks on a monthly basis. The Sending Unconditional Payments to People Overcoming Resistances to Triumph (SUPPORT) Act and Genuine Progress Indicator (GPI) Act would award $1,200 checks for qualifying adults and $600 for children every month.

If passed, phaseouts would start at $75,000 for taxpayers filing as single, while the amount would equal $150,000 for those filing jointly. For every $100 earned over these thresholds, payments would decrease by $5.

According to Congresswoman Omar, “The pandemic has laid bare these inequalities. We as a nation have the ability to make sure everyone has their basic needs like food, housing and healthcare met.”

Her plan aims to provide recurring aid to American families. It also focuses on updating current economic policies to provide funds for those who live below the poverty line such as the country’s homeless population.

If Omar’s plan succeeds, a $2.5 billion grant program would be created to help allocate the funds.

This program would not mean immediately distributing checks to Americans but would set the wheels in motion. It is also unclear as of now how long monthly checks would continue to be sent. Right now, it’s uncertain if Congress would pass the Act.

Previous Stimulus Checks

Thus far, Americans have received three rounds of stimulus checks. The Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized the first batch in early 2020. Under this act, eligible Americans received $1,200 per adult and $500 per child. The IRS reported issuing 162 million payments, leading to a total $271 billion budgetary cost.

To receive a check, single taxpayers had to make under $99,000 annually. Married couples filing together could make $198,000 or less.

The second round of checks was authorized December 27, 2020, equaling half of the previous amount for adults, or $600. However, parents received $600 per child. This payment fell under the Consolidated Appropriations Act, with a budgetary cost of $164 billion.

The maximum threshold for single taxpayers was lower for the second check, with $87,000 being the maximum for single filers. Married couples filing jointly could only make $174,000 to be eligible.

Finally, the American Rescue Plan in March 2021 awarded eligible adults $1,400 ($2,800 for married couples), in addition to $1,400 per child. As one might expect, the overall governmental cost was significantly higher, totaling $411 billion.

Single taxpayers making $80,000 or less were eligible for this round of checks and $160,000 for married couples jointly filing.

While most recipients received their checks via direct deposit, Social Security and other beneficiaries obtained debit cards. It is unknown whether this would be the case with monthly checks or not if Congress approved such as a measure.