Happy 2021! Stimulus Check Update
May your year be happy, healthy & wealthy!
Have you gotten your stimulus check yet?
Over the holiday weekend, I heard from some family members who already got their checks.
If you haven't gotten yours, don't worry. The IRS says you'll most likely see yours this week.
The Treasury Department began delivering the second round of payments last week to those who received the first round of payments earlier this year.
The initial direct deposit payments arrived as early as December 29th for some and will continue this week. Paper checks started to get mailed out on December 30th.
The IRS emphasizes that there's no action required, if you're eligible (meaning if you got the money the first round, you should get money this round).
And if you see the direct deposit payments as pending or as provisional in your bank account, that's normal too. The official payment date is January 4, 2021.
The IRS reminds taxpayers that the payments are automatic, and you shouldn't have to contact your bank or the IRS with payment timing questions.
As with the first round of payments, most people will get their money by direct deposit. For Social Security and other beneficiaries who got the first round of payments by Direct Express, you'll receive this second payment the same way.
If you got the first round of payment by check or debit card, then you may not get your money until the end of January, so just be patient.
And the IRS says if Congress passes the bill to increase the amount to $2000, then the remaining amount will also be issued in the same way, soon after. This round is generally $600 for singles and $1200 for married couples filing jointly, and those with kids under 17, you could also get $600 for each child.
If you didn't get money during the first round, you may still want to check with your accountant and be able to claim it when you file your 2020 taxes.
Now for some more answers to questions you may have...(and the IRS' answers...)
Who's eligible for the second Economic Impact Payment?
Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have 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.
How do I find out if the IRS is sending me a payment?
People can check the status of both their first and second payments by using the Get My Payment tool, available in English and Spanish only on IRS.gov. The tool is being updated with new information, and the IRS anticipates the tool will be available again in a few days for taxpayers.
How will the IRS know where to send my payment? What if I changed bank accounts?
The IRS will use the data already in our systems to send the new payments. Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail. For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021. Remember, the 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.
Will people get a paper check or a debit card?
For those who don’t receive a direct deposit by early January, they should watch their mail for either a paper check or a debit card. To speed delivery of the payments to reach as many people as soon as possible, the Bureau of the Fiscal Service, part of the Treasury Department, will be sending a limited number of payments out by debit card. Please note that the form of payment for the second mailed EIP may be different than for the first mailed EIP. Some people who received a paper check last time might receive a debit card this time, and some people who received a debit card last time may receive a paper check.
IRS and Treasury urge eligible people who don’t receive a direct deposit to watch their mail carefully during this period for a check or an Economic Impact Payment card, which is sponsored by the Treasury Department’s Bureau of the Fiscal Service and is issued by Treasury’s financial agent, MetaBank®, N.A. The Economic Impact Payment Card will be sent in a white envelope that prominently displays the U.S. Department of the Treasury seal. It has the Visa name on the front of the Card and the issuing bank, MetaBank®, N.A. on the back of the card. Information included with the card will explain that this is your Economic Impact Payment. More information about these cards is available at EIPcard.com.
Are more people eligible now for a payment than before?
Under the earlier CARES Act, joint returns of couples where only one member of the couple had a Social Security number were generally ineligible for a payment – unless they were a member of the military. But this month’s new law changes and expands that provision, and more people are now eligible. In this situation, these families will now be eligible to receive payments for the taxpayers and qualifying children of the family who have work-eligible SSNs. People in this group who don’t receive an Economic Impact Payment can claim this when they file their 2020 taxes under the Recovery Rebate Credit.
I didn’t file a tax return and didn’t register with the IRS.gov non-filers tool. Am I eligible for a payment?
Yes, if you meet the eligibility requirement. While you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit when you file your 2020 federal income tax return.
Will I receive anything for my tax records showing I received a second Economic Impact Payment?
Yes. People will receive an IRS notice, or letter, after they receive a payment telling them the amount of their payment. They should keep this for their tax records.
Where can I get more information?
For more information about Economic Impact Payments and the 2020 Recovery Rebate, key information will be posted on IRS.gov/eip. Later this week, you may check the status of your payment at IRS.gov/GetMyPayment. For other COVID-19-related tax relief, visit IRS.gov/Coronavirus.
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