Jan 7, 2021
Information as of January 7, 2021
At the end of December 2020, the Treasury Department and the IRS announced a second series of economic impact payments that would be distributed. As the payments continue to be distributed, we tackle some of the key points below:
- Single/Head of Household filers: $600
- Married Filing Jointly: $1,200
- An additional $600 for each qualifying child under the age of 17
Adjusted Gross Income Threshold Amounts:
- Single: $75,000 - $87,000
- Head of Household: $112,500 - $124,500
- Married Filing Jointly: $150,000 - 174,000
- Payments will be reduced by $5 for every $100 above the lower income limits until they are completely phased out
- Anyone who has an income above the highest end of the phaseout brackets, or anyone who is claimed as a dependent, is ineligible for an economic impact payment.
- The IRS will base eligibility off of 2019 tax returns.
- If you are someone who does not file a tax return, but collects Social Security or Railroad Retirement benefits, the IRS will use form SSA-1099 (Social Security benefit statement) or RRB-1099 (Railroad Retirement benefit statement) to determine eligibility. Those who collected the first stimulus check are now in the system and should expect to receive the second payment in the same manner as the first.
- If you do not file a tax return and do not collect Social Security or Railroad Retirement benefits, but received the first-round stimulus check, you should automatically be in the system to receive the second
- Unless you are a non-filer mentioned in the bullet point above, no action is necessary to receive your check.
- The payment is structured as an advance of a 2020 tax credit.
- The payment is nontaxable.
- Payment will be direct deposited if the IRS has bank account information on file. If they do not, a physical check will be mailed, and some people may receive a debit card.
- The IRS sent out the first batch of stimulus checks on Wednesday, December 30, 2020 and the official direct deposit date is set for January 4, 2021.
- The IRS released a webpage that provides individuals with a detailed breakdown on what to expect with the second stimulus payment in addition to a series of FAQs. You can find the website by clicking here.
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