Coronavirus Relief Package: Who Gets a Stimulus Check?

Summary

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WSJ Your Money Briefing: "Coronavirus Relief Package: Who Gets a Stimulus Check?"

Date: December 22, 2020
Host: J.R. Whalen
Guests: Richard Rubin (Tax Reporter), Andrew Duren (Reporter)

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Episode Overview

This episode delves into the $900 billion coronavirus relief package passed in late 2020, focusing on stimulus payments for American households, expanded unemployment benefits, and rental relief. The discussion is led by WSJ’s J.R. Whalen, with expert commentary from tax reporter Richard Rubin and reporter Andrew Duren.

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Key Discussion Points & Insights

1. Who Gets a Stimulus Check?

Guest: Richard Rubin
[01:33–02:38]

• Eligibility Mostly Mirrors First Round:

  • Individuals earning up to $75,000/year and married couples up to $150,000 qualify for the full payment.
  • Each adult: $600; each child: $600.
  • Recipients must have a Social Security number.
  • Children are eligible, but non-child dependents (like college students or elderly adult dependents) are not.

• Mixed Status Families:

  • A major update: In households where one spouse has a Social Security number and the other doesn't (e.g., an unauthorized immigrant), that spouse and any children with Social Security numbers are now eligible. This eligibility is also retroactive to the first payment.
    • Quote:

      "In the first round, [mixed-status families] were ineligible. And this time they are and they're actually retroactively eligible for the payment just for the one spouse and any children who have Social Security numbers."
      — Richard Rubin [02:20]

• No Income Threshold:

  • People with no income (e.g., those on Social Security or veterans benefits) can still receive payments.

2. How and When Will Payments Arrive?

[02:38–03:51]

• Faster Distribution:

  • The IRS and Treasury Department are leveraging systems built for the previous round for quicker payment.
    • Quote:

      "They have the file, basically the computer file, to load up with the right number, $600 per adult, $600 per child and send the money to bank accounts."
      — Richard Rubin [02:48]

• Timeline:

  • Direct deposits could show up as early as the following week.
  • Paper checks may arrive later; all payments are intended to be sent by January 15.
    • Quote:

      "It might be that you just end up getting it on your as part of your tax return."
      — Richard Rubin [03:36]

• Missed Checks:

  • If you don't receive your check by January 15, you can claim it on your 2020 tax return.

3. Changes in Family Size or Income (Reconciling Payments)

[03:51–05:01]

• Reconciling on 2020 Tax Return:

  • If you had a child in 2020 or your income dropped below the threshold, you can claim additional payment when filing your taxes.
    • Quote:

      "If you had a child anytime in 2020, they wouldn't have been reflected on the first payment or the second one. And so you would get $1,100 extra as part of your tax refund ..."
      — Richard Rubin [04:09]

• Not Clawed Back:

  • If your income rose or you had fewer dependents, you do not have to repay any stimulus money already received.
    • Quote:

      "The key thing is it doesn't go the other way... Any payment you got, you don't have to pay it back ..."
      — Richard Rubin [04:45]

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4. Unemployment Benefits Expansion

Guest: Andrew Duren
[05:15–06:34]

• Supplemental Federal Payment:

  • $300 per week in extra federal aid for those on unemployment.

• Extension of Enhanced Unemployment Programs:

  • Pandemic programs, including aid for gig and contract workers, extended by 11 weeks (from 39 weeks to 50 weeks total).

    • Quote:

      "...people who are receiving unemployment insurance right now will get an additional $300 per week from the federal government."
      — Andrew Duren [05:25]

    • Quote:

      "...total timeline for receiving state unemployment benefits was now 39 weeks. And so this bill adds onto that even further. So that number 39 weeks now becomes 50."
      — Andrew Duren [06:17]

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5. Rental Assistance and Eviction Moratorium

[06:34–07:17]

• $25 Billion in Rental Relief:
  • Targeted at low-income Americans struggling with rent payments.
  • Eviction Moratorium Extended:
    • Previously set to expire at end of December; now extended one more month, through January.
    • Quote:

      "...it gives $25 billion in rental assistance... and then on top of that, it extends an eviction moratorium..."
      — Andrew Duren [06:45]

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Notable Quotes & Memorable Moments

• Mixed Status Family Inclusion:

  "In the first round, [mixed-status families] were ineligible. And this time they are and they're actually retroactively eligible for the payment just for the one spouse and any children who have Social Security numbers."
  — Richard Rubin [02:20]

• No Need to Repay If Circumstances Change:

  "The key thing is it doesn't go the other way. If your income went up to go out of the range or any payment, then you don't have to pay that back."
  — Richard Rubin [04:45]

• Unemployment Benefit Extension:

  "...total timeline for receiving state unemployment benefits was now 39 weeks. And so this bill adds onto that even further. So that number 39 weeks now becomes 50."
  — Andrew Duren [06:17]

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Timestamps for Important Segments

• [01:33] Eligibility for Second Stimulus Check
• [02:38] Distribution Timeline and Methods
• [03:51] Impact of Family or Income Changes
• [05:15] Unemployment Benefits Expansion
• [06:34] Rental Assistance and Eviction Moratorium

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Conclusion

This episode offers a concise yet comprehensive overview of who benefits from the new coronavirus relief package—highlighting practical details and addressing common listener concerns on stimulus checks, unemployment support, and rental assistance. The clear analysis and updates provide valuable guidance for navigating the next phase of pandemic financial relief.

Transcript

[A]

Deal replaces fragmented payroll vendors with one global system. No third parties hire, manage and pay teams in 150 countries operate like a local everywhere. Visit deel.com WSJ.

[B]

Here's your money briefing for Tuesday, December 22nd. I'm J.R. whalen for the Wall Street Journal. The new $900 billion coronavirus relief package includes a range of measures to help the country through the pandemic, among them, a second round of stimulus payments for American households.

[C]

Treasury Secretary Steven Mnuchin said that we should start seeing payments in bank accounts early next week, but it seems like this is on track to happen relatively quickly, even faster than last time.

[B]

Coming up, our tax reporter Richard Rubin will explain what's changed since the last round of checks went out. Plus, our reporter Andrew Duran will take us through the parts of the aid package benefiting unemployed workers and those facing possible eviction. That's after the break. US Households, along with jobless Americans and renters struggling to make payments, are all in line for some relief in the new $900 billion coronavirus aid package. We'll talk about unemployment and rental assistance with our reporter Andrew Duran later in the show. But first, let's bring in our tax reporter Richard Rubin for more on the new round of direct payments that come with the package. Richard, thanks for being with us.

[C]

Happy to do it.

[B]

So first of all, who's in line to get a check this time?

[C]

So the checks are going to largely the same group as got checks the first time around in the spring. There's some slight changes in eligibility, but the basics are the same. It's anyone who's got income for an individual up to 75,000 gets the full payment. For married couples, 150,000. You have to have a Social Security number. Children are eligible, but there are no payments for non child dependents. So think college students or elderly adults who are dependents. You can get a payment even if you have no income. And you know, like if you're or if you have Social Security or veterans benefits or any of those kinds of things, you're eligible. The one big eligibility change is what we call mixed status families. So you have a household where one spouse has a Social Security number and the other spouse is maybe an unauthorized immigrant and doesn't have a Social Security number. In the first round, they were ineligible. And this time they are and they're actually retroactively eligible for the payment just for the one spouse and any children who have Social Security numbers.

[B]

So you report the stimulus checks could go out next week. That seems like a faster turnaround than the last time, right? Yeah.

[C]

And some of that is because of the work they did last time. They have the file, basically the computer file, to load up with the right number, $600 per adult, $600 per child, and send the money to bank accounts. And they've got more bank account information than in the spring because of people who don't typically file tax returns, but updated their information with the irs. And so Treasury Secretary Steven Mnuchin said that we should start seeing payments in bank accounts early next week. But it seems like this is on track to happen relatively quickly, even faster than last time.

[B]

Now, how about people who prefer to receive a paper check so they would

[C]

get it a little bit later? We're still trying to figure out exactly how long that would take. The legislative text of the bill seems to suggest that payments will be done by January 15th, and then anyone who hasn't received one by then basically can claim it as part of their 2020 tax return. So that's one thing that we're kind of looking for some additional clarity on as we go forward. Here is exactly how this would work for people who might need a paper check. It might be that you just end up getting it on your as part of your tax return.

[B]

Okay, so you report the checks are based on household data from 2019. But what if someone's family size has changed since the last checks went out in the spring?

[C]

So that's where the fact that it all gets reconciled on the 2020 tax return is important. But it's a one way reconciling. So if you had a child anytime in 2020, they wouldn't have been reflected on the first payment or the second one. And so you would get 1,100 extra as part of your tax refund or lowering your tax payment when you file your 2020 tax return. The other reason you might see some people have changes is if your income went down, say you earned 100,000 in 2019, but then your income went down so you qualify for more for the full payment for 2020, then you'd be able to claim that on your tax return. But the key thing is it doesn't go the other way. If your income went up to go out of the range or any payment, then you don't have to pay that back. Any payment you got, you don't have to pay it back if your eligibility either in terms of income or dependence, changes between the time of the payment and the time that you file your tax return.

[B]

All right, that's tax reporter Richard Rubin. Now, the relief package also includes measures to assist jobless Americans and renters who could be facing eviction at the end of the month. For more on that, we've got reporter Andrew Duran on the line from Washington. Andrew, thanks for taking the time to be with us.

[D]

Yeah, thanks for having me.

[B]

So this is definitely good news for people receiving unemployment benefits. How do the numbers stack up for them?

[D]

So, yeah, there's a few measures in this bill that will, you know, help folks who are on unemployment insurance. The probably the biggest one is that people who are receiving unemployment insurance right now will get an additional $300 per week from the federal government. So it will just increase the size of the assistance for people who are receiving state unemployment payments. Other measures in there is that it extends to other unemployment programs by 11 weeks. So one of the things, or two of the things that Congress did earlier this year when they first started passing relief legislation for COVID 19, is they expanded the number of people who can claim unemployment benefits to include gig workers and contract workers and freelance workers, folks like that who don't typically qualify. And then they also extended the timeline for state unemployment benefits so that they lasted an additional set of time. And so the total timeline for folks who could for receiving state unemployment Benefits was now 39 weeks. And so this bill adds onto that even further. So that number 39 weeks now becomes 50. So folks who were facing the possibility of having their unemployment benefits ending in the coming weeks here will now have another 11 weeks to draw from those benefits.

[B]

And the clock's been ticking for many renters. A lot of them have been struggling to make payments and face possible eviction at the end of the month when some federal protections expire. How does the COVID bill address that?

[D]

So it does two big things for renters in the bill. First of all, it gives $25 billion in rental assistance that's aimed at kind of low income Americans to help them try and cover rent in the first place. But then on top of that, it extends an eviction moratorium, which has been in place for much of 2020. It extends that for another month. So that will now last. It was set to end at the end of this month, but it will now end at the end of January. So those are the two main things that folks who are worried about paying rents will be able to count on now.

[B]

All right, that's reporter Andrew Duran. Andrew, thanks for being here.

[D]

Thanks for having me.

[B]

And that's your Money briefing. I'm J.R. whalen for the Wall Street

[A]

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