HEALS Act: who qualifies for coronavirus stimulus checks?
Senate Republicans, on Monday, finally unveiled their coronavirus stimulus proposal. The bill, referred to as the HEALS Act, proposes almost everything that was expected, including coronavirus stimulus checks. Though the proposed stimulus checks follow the same criteria as the CARES Act, it is much clearer on who will qualify for the checks.
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Coronavirus stimulus checks under HEALS Act
The HEALS Act proposes coronavirus stimulus checks of $1,200. It lays down the same eligibility criteria as was proposed by the CARES Act. Those earning (gross adjusted income) up to $75,000 per year in 2019 ($150,000 for couples), would get a check for the full amount of $1,200 ($2,400 for couples).
The stimulus check amount would be reduced by $5 for every $100 in income above $75,000. There would be no stimulus checks for those earning $99,000 or more ($198,000 for couples). Similar to the CARES Act, the HEALS Act proposes $500 for each dependent.
This time, however, there is no age cap for dependents. The CARES Act capped the age of dependents eligible for the $500 payment at 17. Such an age cap excluded many college students and other adult dependents from getting the benefit.
Further, the GOP proposal clears that those with no income, and those who get money from programs, such as SSI, would be eligible for the full credit. The HEALS Act also clarifies that those who died before January 1, 2020, would not get the check. Also, those in prison would not qualify for the stimulus check.
As per the draft text of the HEALS Act, no payment will be made “to any individual in prison at the time Treasury processes the rebate. Furthermore, any individual in prison for all of 2020 is ineligible to claim the rebate as a 2020 tax credit.”
The HEALS Act also protects the stimulus checks from being garnished by debt collectors. However, it doesn’t block offsets for owed child support.
How is it different from HEROES Act?
The proposal of the HEALS Act for the coronavirus stimulus checks is largely in line with what the Democrats asked for. Democrats also, in the HEROES Act, propose giving $1,200 stimulus checks with the same income cap as was there in the CARES Act.
Also, similar to the HEROES, the HEALS Act widens the scope of dependents eligible for the payment. Now, a full-time student up to 24 years of age, as well as an adult dependent, qualify for the payment. It is estimated that the increased scope could extend the benefits to about 26 million dependents.
The only real difference between the two (HEROES and HEALS Acts) when it comes to the stimulus checks is regarding the payment to dependents. Similar to the CARES Act, the HEALS Act proposes giving $500 to dependents. The HEROES Act, however, seeks a $1,200 payment per dependent (for up to three).
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