- Congressional leaders are still nowhere close to passing stimulus legislation that provides funding to give most Americans a new stimulus check.
- However, the IRS is sending out a small round of new stimulus checks this month (about 50,000).
- Those new stimulus checks are a kind of catch-up payment, meant to provide certain people with the money they should already have gotten.
Instead of working with Congress to reach a new accord on stimulus legislation, several leaders who are key to the process — like White House senior advisor Jared Kushner, Republican House Minority Leader Kevin McCarthy, and Democratic House Majority Leader Nancy Pelosi — all sat down with CNBC on Tuesday for separate interviews to talk about how hard the process has been. Kushner, for example, reiterated a theme we’ve heard for a while now relative to new stimulus and the possibility of most Americans getting a new stimulus check, telling CNBC that probably won’t happen until after the election.
But this is not to suggest that work isn’t being done to rectify the situation, however long-shot that work may be. We told you yesterday about a bipartisan group of lawmakers operating as the House “Problem Solvers Caucus” who have put forward a nearly $2 trillion stimulus proposal which includes everything from aid to the postal service to funding that would support a new round of stimulus checks. Meanwhile, let’s also not forget — these aren’t new stimulus checks, by any means, but it is worth offering up a reminder that the IRS is sending out 50,000 stimulus checks to some of you right about now, as we noted back in August.
To be clear, this is not the product of some sort of legislative breakthrough or the breaking of congressional gridlock that has finally resulted in these checks. The tax agency is actually simply correcting a mistake by mailing out 50,000 checks with money that some of you should have gotten already.
Per the IRS, these so-called “catch-up” payments will go out to about 50,000 people whose portion of the stimulus “was diverted to pay their spouse’s past-due child support” —
These catch-up payments are due to be issued in early-to-mid-September. They will be mailed as checks to any eligible spouse who submitted Form 8379, Injured Spouse Allocation, along with their 2019 federal income tax return, or in some cases, their 2018 return. These spouses do not need to take any action to get their money. The IRS will automatically issue the portion of the EIP that was applied to the other spouse’s debt.
The IRS goes on to explain that it’s aware some people didn’t file a Form 8379 and didn’t get their portion of the stimulus for the same reason as stated above. According to the tax agency, those people don’t need to take any additional action or submit a new form. “The IRS … will automatically issue the portion of the EIP that was applied to the other spouse’s debt at a later date,” the announcement goes on to note.