Although it took much deliberation and time to pass, the second round of Economic Impact Payments, part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, are underway to eligible Americans. According to IRS Commissioner Chuck Rettig, the Internal Revenue Service and Treasury Department are “working swiftly” to distribute payments “as quickly as possible.” Here’s what you need to know.
PAYMENT AND ELIGIBILITY
Those eligible are generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return. You will receive up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child (dependent up to age 16).
Generally, if you have an adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced.
Find out if you’re eligible using the Get My Payment tool, which is being updated. Check frequently for your first and or second stimulus payment status.
HOW DO I GET MY PAYMENT?
Similar to the first stimulus, this second payment will be deposited directly into the same bank account reflected on your last tax return filed. You may see the direct deposit payment as pending or as provisional payments in your account before the official payment date of January 4, 2021. If there is no account on file, the IRS will send a check to your home address. Checks can be conveniently and securely deposited using our mobile check deposit feature right from your smartphone. Payments are automatic, so the IRS stresses this is no action required by eligible individuals to receive this second payment.
WHEN WILL I GET MY PAYMENT?
Eligible Americans should receive a direct deposit by early January 2021. Otherwise, look out for a check or debit card in the mail. Mailed payments will require more processing and mailing time. Those who reside abroad will have longer wait times for checks as disruptions to air travel and mail delivery in some countries will slow delivery.
WHAT IF I DON’T GET MY PAYMENT?
If an eligible taxpayer does not get a payment or it is less than expected, it may be claimed on the 2020 tax return as the Recovery Rebate Credit. Remember, Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.