Second Round of Economic Impact Payments
If you are an American expat or a U.S. resident and are wondering whether you will receive another economic impact payment (EIP), the new year has started with some good news. As of December 29, 2020, the IRS and the Treasury Department have begun delivering a second round of EIPs as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 to millions of people that received the first such payments earlier in 2020. Paper checks were scheduled to be mailed out starting on December 30, 2020. Therefore, if you already received the first EIP, then you should have already received your second EIP as well.
Generally speaking, U.S. citizens and resident aliens that are not eligible to be claimed as a dependent on another person’s tax return are eligible for this second stimulus payment. Individuals eligible for this second EIP will receive $600. Married couples will receive $1,200 and $600 for each child that qualifies. In terms of income thresholds, individuals with a 2019 adjusted gross income (AGI) of $75,000 and married couples filing jointly with an AGI $150,000 will receive the full amount of this second payment. For filers who have an income above those listed amounts, your payment amount will be reduced.
If you already received the first stimulus payment via direct deposit, then you will also receive the latest payment via direct deposit. Otherwise, you will be receiving a check, or, in some cases, a debit card.
If you are eligible for this second EIP and already received the first EIP, there is no action required on your part to receive this payment. However, you can always check the status of your payment using the IRS’s Get My Payment tool.
If you are an eligible person but did not receive either the first or the second payment, or you didn’t file a tax return but are eligible to receive an EIP, you will be able to claim the Recovery Rebate Credit for these payments on your 2020 tax return. Therefore, it is very important to be caught up with your tax returns, as you could be leaving money on the table by not filing (not to mention, you will be in non-compliance for not filing and hence will be opening yourself up to potential penalties). Get in touch with us today to get caught up with your taxes and ensure that you receive your EIP.