California stimulus check – What to know about the state's $600 Covid payment in Gov Newsom's $9.5billion relief deal

CALIFORNIA has passed a new stimulus bill to provide an additional check for low-income residents on top of the potential third relief payment provided by the federal government.

On Wednesday, California lawmakers passed a $9.6 billion coronavirus relief package, which will provide eligible residents with an extra $600.

That's in addition to the proposed $1,400 that Congress is working on now.

California's bill — called the Immediate Action Agreement, a version of the Golden State Stimulus plan Gov. Gavin Newsom introduced last month — would also increase aid to small businesses, and add resources for child care services and emergency financial aid for community college students.

"As we continue to fight the pandemic and recover, I'm grateful for the Legislature's partnership to provide urgent relief and support for California families and small businesses where it's needed most," Newsom said in a press release.

The proposal is expected to get final approval from California's government next week, and appears to have wide support from state leaders, so will likely go into effect, CNet reports.

In its most recent release announcing the agreement, Newsom's office did not specify when the $600 payment would get sent out for most people, or what form it would take – let that be direct deposit or mailed check.

However, the release did say the payments for CalWORKS households are expected by mid-April, and the timing for the delivery for SSI/SSP and CAPI recipients is still under discussion with federal officials. 

It comes as Americans struggling financially amid the coronavirus pandemic eagerly await Congress to approve the third relief package.

President Joe Biden proposed a $1.9trillion Covid relief package that will send eligible Americans a $1,400 stimulus check.

1) When can American's expect to receive a third stimulus check?

With former President Donald Trump's impeachment trial out of the way, the third stimulus package could be voted on by next week, after negotiations were halted due to the Senate trial.

The House and Senate are both on breaks this week and the final decision is expected to get a vote when they return, as lawmakers mull the $1.9trillon package.

The House of Ways and Means Committee passed the third round of checks the week of February 8, meaning that a vote from the House is expected the week of February 22.

However, the sprawling legislation still has to make its way through Congress before Americans can start receiving their checks.

House Speaker Nancy Pelosi has promised Democrats will try to pass the next coronavirus relief bill before the end of the month, when unemployment benefits are set to expire for thousands of Americans.

She said the House hopes to green-light the package "as soon as possible" before the March 14 deadline.

2) Who will qualify for the next stimulus check?

Based on the latest Democratic proposal, the income limit for individuals and families who qualified for the last two relief payments would be the same for the newly proposed stimulus.

However, the biggest concern regarding the third stimulus check would be if Congress will base your payment on your 2019 tax return or look at your 2020 filing, which could affect an individual's eligibility.

In the second stimulus check, each child dependent – age 16 and younger – qualified for a $600 payment to the household payment.

There was no cap on how many children families could claim for that payment.

However, under the newest proposal an additional $1,400 will be given to dependents, including those 16 and over.

College students, older adult relatives and people of any age with certain disabilities will be entitled to receive money as part of the household total.

Individuals earning below $75,000 would receive the full $1,400 payment, and couples earning below $150,000 would be entitled to receive $2,800.

Nonetheless, there are still questions on whether those making up to $75,000 a year will earn a full stimulus check.

If the bill is passed and everything goes according to plan, Biden is set to sign it in March – meaning the IRS could send the checks out just a few days later.

3) Will unemployment benefits be extended?

Unemployment benefits will also be included in Biden's stimulus package, as well as providing an emergency boost for families with children.

Unemployment benefits will be boosted to $400 per week.

In an interview with CNN on Tuesday, February 16, Biden defended his proposed spending bill and the next round of $1,400 stimulus checks – saying "now is the time to go big."

"I’m committed to pass – look, here’s – some of you are probably economists or college professors or you’re teaching in school.

“There is consensus among economists, left, right and center, that overwhelming consensus is in order to grow the economy, we can't spend too much," Biden said.

He added, "Now is the time we should be spending. Now is the time to go big."

4) What if you're not eligible for a third check?

A statement on the IRS website reads: “Most people who are eligible for the Recovery Rebate Credit have already received it, in advance, in these two rounds of Economic Impact Payments.”

It added: “If individuals didn't receive a payment – or if they didn't receive the full amounts – they may be eligible to claim the Recovery Rebate Credit and must file a 2020 tax return.”

The agency urged people to file and complete an accurate tax return for 2020 in order to know whether you are eligible or not.

The government office said eligibility for and the amount of the Recovery Rebate Credit are “based on 2020 tax year information while the Economic Impact Payments were based on 2019 tax year information”.

Source: Read Full Article