Who Is 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 elses 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.
Expect A Second Round Of Checks
According to Senate Majority Leader Mitch McConnell and Treasury Secretary Steven Mnuchin, another round of stimulus checks is all but guaranteed. In fact, upon announcing the details of the HEALS Act on Monday, Senate Republicans promised the release of more stimulus money to American families. Of course, until the final bill is signed, we won’t know the details.
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How Do I Claim The Economic Recovery Rebate Credit
If you were eligible for an Economic Impact Payment but didnt receive one, or if the payment you received was less than you expected based on your eligibility criteria, you can claim the difference on your 2020 tax return filed in 2021. Youll use Form 1040 or 1040-SR to claim your Economic Recovery Rebate Credit, which will include a worksheet to help you determine the amount youre eligible to get.
When Will I Get My Stimulus Check
If the new bill gets signed before Christmas, which is highly probable, the checks will be distributed just after the New Year. It means you might be getting one as soon as 15 days from now! Steven Mnuchin also reportedly said that “People are going to see this money at the beginning of next week.”
Since it’s the IRS that will be distributing the money, people who are already in their database will receive the checks the fastest.
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Who Qualifies For The Second Stimulus Check
The IRS has set AGI limits to determine taxpayer eligibility. The ranges for the second stimulus check are broken down as follows:
- Individuals with AGI of $75,000 or less qualify to get the full $600 second stimulus check. Individuals making more than $75,000 and up to $87,000 receive a reduced amount.
- Heads of household with AGI of $112,500 or less qualify for the full $600, and those making over $112,500 and up to $124,500 get a reduced amount.
Note that the second stimulus checks also provide an additional $600 payment for every qualifying dependent under the age of 17. So if you filed your taxes as a married couple with three children, you could get up to $3,000.
Currently, theres no limit on the number of dependents that you can claim as long as they are within the age requirement and you claimed them on your tax return. But keep in mind that if you claimed your child as a dependent and they are over age 17, you are not eligible to receive $600 extra on your stimulus check. Your child does not qualify for a stimulus check of their own either.
The table below breaks down payments by AGI level for single and joint filers:
|Second Stimulus Checks for Single and Joint Filers|
Where Is My Second Stimulus Check
All second stimulus checks were issued by January 15, 2021. If you didnt get a second stimulus check by then , you can claim your second stimulus check as the Recovery Rebate Tax Credit on your 2020 tax return or use GetCTC.org if you dont have a filing requirement.
You can request a trace of your stimulus check. You should only request a payment trace if you received IRS Notice 1444-B showing that your second stimulus check was issued or if your IRS account shows your payment amount and you havent received your second stimulus check.
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Why Is The Calculator Phasing Out Earlier Than For The Cares Act
The new proposal uses the same phase-out principle as the CARES Act, which was a 5% reduction for every dollar of income greater than the limit. Since the new base amount of $600 is less than the previous amount of $1200, the money will phase out sooner since the rule stayed the same.
Do I Have To Pay Back My Stimulus Check
The latest bill has changed the wording of the second stimulus checks, and it is now considered a rebate. Essentially its getting a a credit against your tax liability for 2020.
Jake, my brain hurts already, can you just tell me what that means?
No, you dont have to pay back your stimulus check. But heres why :
- The bill says this rebate is a . But what if you didnt earn much and dont owe taxes? All good, its a refundable credit, which means you get it whether you owe taxes or not.
- The bill says if you get a stimulus rebate based on 2019 income, but then you earn MORE than the phaseout amount in 2020, you dont have to pay it back, the rebate will be FORGIVEN.
Example: Joe earned $50,000 in 2019, and gets a $600 rebate check. But in 2020, he earns $100,000, which would disqualify him from the rebate. He does NOT have to pay back the $600, and the rebate payment is essentially forgiven.
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Stimulus Check: How Much Will I Get
While the income brackets of the new bill are the same as the previous CARES Act, the amounts you will receive will be different:
Second Stimulus Check: How You Can Track When You’ll Get Your Payment
The $600 stimulus checks that are going out to millions of people can now be individually tracked through the IRS’ “Get My Payment” website, which reopened on Monday afternoon. The site informs people about the date of their payment and whether they will receive it via direct deposit or the mailed payment date.
Still, there are some glitches that are delaying the payments of the stimulus money and creating confusion and questions for consumers. Chief among them: Some people who had their 2020 tax returns filed through tax preparers like H& R Block may have had their stimulus check sent directly to the tax firm, rather than their bank account.
This echoes a glitch that impacted payment of the first stimulus check for some people who used tax prep services and for whom the IRS didn’t have direct-deposit information. With the second round of stimulus checks, a similar issue may impact some people, with H& R Block warning its customers who used a service called a refund transfer that they might see “an account number you don’t recognize” on the “Get My Payment” website. Refund transfers are offered to allow people to tap their refund to pay their tax prep fees, according to H& R Block.
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Could My Second Stimulus Payment Amount Change If I Recently Filed 2019 Taxes
Yes. The IRS determines eligibility based on your most recent tax return. If your first stimulus check was based on your 2018 return because you hadnt filed 2019 taxes yet, you could receive more or less money depending on your adjusted gross income for 2019.
Say youre a single taxpayer who earned $75,000 in 2018 and you waited until July 15 to file your 2019 taxes. Under the original CARES Act, you qualified for the full $1,200 check because it was based on your latest tax return for 2018. If you filed your 2019 tax return in the meantime with an adjusted gross income of $80,000, you could receive less than the full amount.
When Will I Get My Second Payment
Most people impacted by this specific error have received their stimulus checks by now, but for a certain number of affected taxpayers, the IRS is still in the process of sending payments.
In a recent statement, they confirmed that they will be reissuing these checks either as a paper check or as a direct deposit. In this case, you can expect to see the payment arrive directly from the IRS later this month . Please note that TaxSlayer does not have your funds.
You can continue to check the status of your check using the Get My Payment tool* on the IRS website. Please note that there is a limited number of times you can access Get My Payment each day.
*Due to a high volume of visitors to the tool, you may receive a please wait message. In this case, the IRS encourages you to try again later. If you have any issues with Wheres My Payment, please refer to the IRS help page here:
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For Payments By Direct Deposit
If you already signed up to receive IRS payments via direct deposit, there is no need to go back and register again. Youre in the system and can expect to receive it that way again, as long as your banking information hasnt changed.
The IRS website for tracking your check Get My Payment is temporarily offline. The IRS page says it is monitoring legislative active and will post updates and provide information to taxpayers when it becomes available.
Who Is Eligible For A Stimulus Check
- Single filers with an AGI up to $75,000 in 2019 will receive the full $600 stimulus payment. For filers with an AGI greater than $75,000, the payments be reduced by $5 for every $100 of income, before phasing out at $87,000.
- with an AGI up to $150,000 in 2019 will receive the full $1,200 stimulus payment. The same $5 per $100 phaseout applies here as well but tops out at $174,000.
- Heads of household with an AGI up to $112,500 in 2019 will be eligible for the full $600 stimulus payment. The $5 per $100 phaseout applies here and phases out at $124,500.
- Filers with qualifying children will receive $600 for every qualifying child under the age of 17 even if their income exceeds the limits above.
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When Will I Get My Check
Payment distribution began on December 29. The Treasury Department and the IRS plan to distribute most payments to eligible taxpayers by Jan. 15. On Jan. 5, the Wall Street Journal reported that more than $112 billion of second stimulus payments had already been sent.
You can check the status of your payment by using the IRS Get My Payment tool.
Will My Stimulus Check Be Taxed?
No. Similar to the CARES Act stimulus checks, this payment is an advance refundable tax credit, and is not taxable income.
Q: We Did Not Receive Stimulus The First Time For Our 15
If you are due the money, you can always get credit through the IRS Rebate Recovery program, meaning your tax refund will be higher or you wont owe as much.
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Will Part Or All Of My Payment Be Used To Settle Debts
This is where the second payout differs from the first. This new bill specifically states that the funds cant be garnished by creditors or debt collectors. As before, your payment cant be held to pay government debts, including past-due taxes.
But what if you owe back child support? Unlike the first round, the second stimulus check cant be held to pay past-due child support. The first stimulus payment didnt have that protection.
How To Claim Stimulus Funds In Your 2021 Tax Return
The third round of stimulus payments is worth up to $1,400 per person if your adjusted gross income is $75,000 or less as a single filer, or $160,000 or less as a joint filer. Families are entitled to $1,400 per dependent for dependents of any age.
Before claiming the funds, make sure they weren’t sent to you already. You can confirm the amount of the third payment and whether it was sent to you by logging into your IRS online account or the Get My Payment app. You can also refer to a letter sent to you by the IRS, known as Notice 1444-C, which will tell you how much is owed to you.
If you lost your stimulus check or suspect it was stolen, you can request the IRS to trace your payment and get the amount automatically reimbursed to you as a tax refund. If you’re filing your 2021 tax return before your trace is complete, do not include the payment amount on the Recovery Rebate Credit Worksheet, the IRS says.
Otherwise, you’ll need to complete the Recovery Rebate Tax Credit worksheet and submit it as part of your 2021 tax return. The worksheet will help you calculate how much you can claim. Then, claim it on line 30 in Form 1040 or Form 1040-SR of your 2021 tax return.
Tax software will also guide you through this process and automatically add all the information to your tax return.
And remember, you can file your tax return for free if your income is $73,000 or less, using the IRS Free File Program.
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Does The Bill Include Protections For Small Business Owners
Small businesses have been hit pretty hard by COVID-19, and this bill seeks to help a little. The new bill includes $284 billion for small business loans under the Paycheck Protection Program, which expired in August. The bill expands that program with some changes.
One of the biggest changes is that this new bill targets smaller businesses. To qualify, a small business must have fewer than 300 employees. A business must also have seen at least a 25% reduction in revenues during at least one quarter in 2020.
Who Is Not Eligible For A Stimulus Check
- Dependents. Individuals that can be claimed as a dependent are not eligible. For qualifying children under 17, the taxpayer who claims him/her will receive the stimulus payment.
- Taxpayers without an SSN or TIN. In order to be eligible for a stimulus check, you must have a social security number or taxpayer identification number.
- Individuals who died before the payment was issued.
- Nonresident aliens.
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How Much Will I Get
Most individuals and dependents would receive $600 stimulus checks under the second coronavirus relief package. This means a family of four could receive $2,400 compared to $3,400 under the original CARES Act.
You should receive the full $600 if your adjusted gross income is up to:
- $75,000 for single or married, filing separately
- $150,000 for married, filing jointly
- $112,500 for heads of household
Additional unemployment aid
On top of the $600 stimulus checks, the bill also includes an additional $300 a week in unemployment benefits. That means youll get your regular statement unemployment payments and an extra $300 every week until March 14, 2021.
Stimulus check for Colorado residents
Before congressional leaders agreed to the new relief package, Colorado had already taken action. In early December, Colorado Governor Jared Polis started distributing one-time $375 stimulus checks to Coloradans who received a weekly unemployment benefit between $25 and $500 from March 15 to October 24.
Adult Dependents From College Students To Seniors
No adult dependents will qualify for the $600 checks, according to the Tax Foundation.
This means that most college students, who are typically claimed as dependents by their parents, won’t qualify for the checks. That rankled some college students, who expressed their frustration on social media. Many are struggling with a range of issues in the pandemic, from food insecurity to lost income from campus jobs that were curtailed because of COVID-19 restrictions.
Older adults, from seniors to disabled individuals, who are claimed as dependents are also excluded, an issue that some on social media called “a slap in the face.”
Disabled adults and seniors who are claimed as dependents often face higher costs due to issues such as higher medical expenses.
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