Thursday, December 31, 2020

Second round of Economic Impact Payments being distributed

Posted By on Thu, Dec 31, 2020 at 3:13 PM

The Internal Revenue Service and the U.S. Treasury Department announced the second round of Economic Impact Payments are in the process of being distributed to millions of Americans who received a first round of payments last spring.

Individuals are eligible for $600 and married couples who file a joint return will receive $1,200. In addition, citizens could receive an extra $600 for each qualifying child. Dependents over the age of 17 are not eligible for the child payment. Individuals who filed an adjusted gross income of more than $75,000 or married couples who made more than $150,000 in 2019 are ineligible for the payment.

In most cases, funds should begin arriving either through direct deposit, paper check, or a debit card by early January. The IRS began mailing paper checks on Wednesday, Dec. 30 and direct deposits have already arrived for some Americans.

Those who did not receive the first round of payments earlier in the year will still be able to claim it on their upcoming 2020 taxes. IRS representatives recommend taxpayers to review the eligibility criteria to make sure they maximize their benefits. Economic Impact Payments will be referred to as Recovery Rebate Credit on Form 1040 or Form 1040-SR due to being an advance payment of the RRC.

The second round of Economic Impact Payments is funded through the Relief Supplemental Appropriations Act of 2021, which was approved by lawmakers earlier this week.

To check if your Economic Impact Payment has been processed, check out the Get My Payment tool at IRS.gov.

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