The Coronavirus Response and Relief Supplemental Appropriations Act – a $900B relief package to deliver the second round of economic stimulus for individuals, families, and businesses was signed into law on Sunday, December 27, 2020.
Below are a few highlights from the bill you should know about:
Stimulus Payments for Individuals and Joint Taxpayers
The second round of direct stimulus payments is underway. Americans can expect:
- Up to $600 for eligible individuals.
- $1,200 for joint taxpayers, and an additional $600 for each dependent child under 17 – is on the way for millions. This means a family with two children could receive $2,400.
Who is eligible to receive a second stimulus payment?
Those with an adjusted gross income (AGI) of up to $75,000 ($150,000 married filing jointly), could be eligible for the full amount of the recovery rebate.
- Stimulus amounts decrease for those with an AGI over $75,000 ($150,000 married filing jointly) and completely phase out at $87,000 for single filers with no qualifying dependents and $174,000 for those married filing jointly with no dependents.
- People receiving Social Security retirement, disability, Railroad Retirement, VA, or SSI income and are not typically required to file a tax return, will again receive a stimulus payment. As in the first round, the IRS would use the information from your Form SSA-1099, Form RRB-1099, or the Veterans Administration to generate your stimulus payment.
*Note, adjusted gross income (AGI) is your gross income like wages, salaries, or interest minus adjustments for eligible deductions like student loan interest or your IRA deduction. Your AGI can be found on line 8b of your 2019 Form 1040.
What do I need to do to receive my stimulus payment?
The IRS will calculate your stimulus payment using the most recent information they have on file from your 2019 tax return. Your stimulus payment will be issued to you automatically either by direct deposit or by check.
When will my stimulus payment arrive?
- Direct deposit payments will begin arriving as soon as January 4, 2021.
- Paper checks may arrive as soon as January 6, 2021.
- prepaid cards will be mailed beginning January 4, 2021.
- To learn the status of your payment visit Get My Payment portal at IRS.gov.
What if I don’t get my stimulus payment by January 15?
The IRS is working hard to deliver the second Economic Impact Payment quickly, and by January 15, 2021, as required by law, while still preparing for the upcoming 2021 tax filing season. Due to the compressed timeline, the IRS is unable to reissue and mail checks after this date and instead encourages people to file their 2020 tax return electronically to claim and receive the Recovery Rebate Credit quickly as possible.
To learn more about how to claim your second stimulus payment on your 2020 tax return please visit the IRS FAQ’s about the Second Economic Impact Payment.
For current information on the Second Economic Impact Stimulus Payment visit the IRS website or read the IRS Press Release regarding the second round of stimulus payments.