Your next stimulus check could be higher, if the HEROES Act gets signed as House Democrats want

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Your next stimulus check could be higher, if the HEROES Act gets signed as House Democrats want
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House Democrats recently introduced a new stimulus package, including a new round of checks.

Democrats in the House of Representatives recently announced a new"round four" stimulus package designed to help the United States economy weather the storm of the COVID-19 pandemic. The new legislation, known as the Health and Economic Recovery Omnibus Emergency Solutions Act, or HEROES Act, would have a massive price tag of more than $3 trillion. This would make it the most expensive economic recovery bill yet, roughly 50% costlier than the CARES Act.

The direct payments proposed in the new legislation would be of the same $1,200 size as the Economic Impact Payments included in the CARES Act. So, why could this result in a larger payment to you? While the HEROES Act would keep the same $1,200 payment amount for each adult, it would also provide a $1,200 payment for each of the taxpayer's dependents, up to a maximum of three. In contrast, theprovided $1,200 per adult and $500 per child. So, a family of four who received a stimulus payment of $3,400 after the CARES Act passed could receive a payment of $4,800 under the new proposal.

To be clear, the same income limitations would apply. The new stimulus payments would begin to phase out for adjusted gross income levels above $150,000 for a married couple filing jointly or $75,000 for single taxpayers. So, if you received a stimulus payment from the CARES Act, you would likely receive one under the HEROES Act as well. And if you have dependents, your payment could be significantly higher.As a final thought, it's important to emphasize that the newly introduced stimulus bill has virtually no chance of passing in its current form.

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