KEY POINTS

  • U.S. House Democrats used the general framework of qualifications from March's CARES Act to help draft reworked HEROES Act
  • Slight changes to qualifications would allow more Americans to qualify for second round of stimulus checks
  • Some qualification proposals are not expected to make it past the U.S. Senate

After U.S. House Democrats outlined their reworked $2.2 trillion HEROES Act, the question on many people’s mind is simple: Who qualifies for a second round of stimulus checks?

Like March’s CARES Act, a key part of the HEROES Act re-introduced on Monday is the round of stimulus checks it would provide to Americans who struggled financially during the coronavirus pandemic. The U.S. Treasury Department and Internal Revenue Service would review citizen’s 2018 and 2019 tax filings to see if they would qualify and distribute checks accordingly.

The qualifications are fairly similar, but House Democrats made several small changes that could allow more people to qualify for a second round of checks. The proposal’s qualifications are:

  • U.S. citizens at home and abroad with an annual gross income under $99,000 would receive a $1,200 check (qualifying income from CARES Act was $75,000).
  • Household heads with an annual gross income under $146,000 receive $1,200 check (qualifying income under CARES Act was $112,500).
  • Married couples with an annual gross income under $198,000 and who file taxes jointly receive $2,400 check and $500 per dependent at any age (qualifying income under CARES Act was $150,000).
  • Citizen in U.S. territories, though tax filings would need to be reviewed by the territories’ tax authorities.
  • Non-tax filers and members of the Social Security Disability Insurance program, though additional information would need to be provided to the IRS.
  • Three groups currently listed in the newest proposal not expected to make it past the U.S. Senate include people who are tax-paying noncitizens, incarcerated, and anyone who owes child support.

One of the biggest changes is the dependent payment. Under the CARES Act, a couple could claim an additional $500 if their listed dependent was a child under the age of 17 but it excluded college and adult dependents. The HEROES Act allows a couple to file for the total number of legal dependents they have regardless of age.

“Democrats are making good on our promise to compromise with this updated bill, which is necessary to address the immediate health and economic crisis facing America's working families right now,” House Speaker Nancy Pelosi said in a public letter to House Democrats. “We have been able to make critical additions and reduce the cost of the bill by shortening the time covered for now.”

PPP, EIDL, and MSLP loans all come with different restrictions on how their funds can be spent.
PPP, EIDL, and MSLP loans all come with different restrictions on how their funds can be spent. Photo: Jernej Furman/Flickr