What You Need to Know About the Second Round of Economic Impact Payments
Last week, the IRS and Treasury Department began sending the second round of Economic Impact Payments as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, which was signed into law on December 27, 2020.
The direct deposit payments and paper checks are automatically sent to taxpayers and no action is needed by eligible taxpayers. 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.
Eligible people who don’t receive a direct deposit in early January should watch their mail carefully for a check or an Economic Impact Payment card. The Economic Impact Payment Card will be sent in a white envelope that prominently displays the U.S. Department of the Treasury seal.
Eligible individuals who did not receive either Economic Impact Payment this year will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it.
Who is eligible?
- Taxpayers who filed a 2019 tax return
- Recipients of Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, and Supplemental Security Income (SSI)
- Veterans Affairs beneficiaries who didn’t file a tax return
- Anyone who successfully registered for the first payment online at IRS.gov using the Non-Filers tool by November 21, 2020
- Anyone who submitted a simplified tax return that has been processed by the IRS
How much money will I get from the Economic Impact 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. If the taxpayer has 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, they will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced.
For more information about Economic Impact Payments and the 2020 Recovery Rebate, key information will be posted on IRS.gov/eip. People can check the status of both their first and second payments by using the Get My Payment tool.
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