Economic Impact Payments
March 12, 2021
Economic Impact Payments – Round 3
President Joe Biden signed a bill on March 11, 2021 that will include a third round of Economic Impact Payments (EIPs), also referred to as stimulus checks, to help Americans who have been financially impacted by the COVID-19 pandemic. The U.S. Department of the Treasury is working to distribute round three of the Economic Impact Payments. ACH payments are beginning to arrive in customer’s accounts with an effective date as early as Wednesday, March 17. Paper checks will be issued beginning the week of March 15.
Information related to the stimulus payments is being updated daily. A great resource for these updates is the IRS website located at www.irs.gov/coronavirus/get-my-payment.
January 8, 2021
Economic Impact Payment Debit Cards
Starting January 4th, the Treasury Department and the Internal Revenue Service started sending approximately 8 million second Economic Impact Payments (EIPs) by prepaid debit card. These EIP Cards follow the millions of payments already made by direct deposit and the ongoing mailing of paper checks that are delivering the second round of Economic Impact Payments.
EIP Cards are being sent in a white envelope that prominently displays the U.S. Department of the Treasury seal.
The EIP Card has the Visa name on the front of the Card and the issuing bank name, Meta Bank®, N.A. on the back of the card.
Taxpayers should note that the form of payment for the second mailed EIP may be different than the first mailed EIP. Some people who received a paper check last time might receive a prepaid debit card this time, and some people who received a prepaid debit card last time may receive a paper check.
More information about these cards is available at EIPcard.com.
January 6, 2021
Get My Payment Portal
The IRS Get My Payment Portal is now available. Click here to access the site. After entering some information about yourself, you will be able to confirm:
- That the IRS has sent your second Economic Impact Payment
- That the IRS sent your first payment. Some people received their first Economic Impact Payment in partial payments. If you received partial payments, the application will show only the most recent.
- Your payment type: direct deposit or mail.
If you have additional questions about the Portal, click here to view some frequently asked questions.
Economic Impact Payments – Round 2
President Donald Trump signed a bill on December 27th that will include a second round of economic impact payments, also referred to as stimulus checks, to help Americans who have been financially impacted by the COVID-19 pandemic. Payments are expected to be received over the coming months. Some Frequently Asked Questions (FAQs) are below to answer some of the questions you may have regarding your payment.
What is different with this round versus the first round? The checks are $600 per adult, which is half the amount from the spring. Because this amount is less, the sliding scale for individuals and couples runs out sooner. Details on this are in the next section.Children under 17 qualify for a $600 payment per child (up from $500 in the spring).
The other major difference is mixed-immigration-status families will be eligible for this payment and for the prior Cares Act payment from the spring. Anyone in the family who is a U.S. citizen or has a “valid identification number” listed on their tax return will be eligible for the payment.
Who qualifies for a payment? The IRS is using your 2019 tax return to determine eligibility for this payment.
Individuals with adjusted gross incomes up to $75,000 a year will be eligible for the full $600 payment. Reduced checks will go out to individuals making up to $87,000 a year (down from $99,000 in the spring).
Married couples are eligible for a $1,200 check as long as their adjusted gross income is under $150,000 a year. Reduced checks, on a sliding scale, will go out to married couples who earn up to $174,000. Married couples also will receive an additional $600 for every child under 17.
People who file as a “head of household” (typically single parents with children) are eligible for a $600 check if they have an adjusted gross income up to $112,500 a year, plus an additional $600 per child under 17. Reduced checks on a sliding scale are available for heads of household earning up to $124,500 annually.
In total, a family of four can expect to receive $2,400 if it meets the income requirements.
How will I receive my payment? If you have already received a payment from the first round of stimulus checks, then the IRS will deliver this second payment in the same way.
Most Americans will receive the payment via direct deposit, but the IRS will send you a paper check or a prepaid debit card if it does not have your bank details on file or you closed the account the IRS has on file.
If the bank account direct deposit information you used the first round is no longer active, the IRS will mail your payment to the last address it has on file for you.
When will the payments arrive? ACH Direct deposit payments could start to land in accounts as early as January. Most direct deposits are expected to arrive in January, with paper checks and prepaid debit cards to follow.
What about people on Social Security? People on Social Security — retirees and those on disability and supplemental income — are eligible to receive the coronavirus relief payment as long as their total income does not exceed the limit. The Treasury Department has clarified that people on Social Security who do not normally file a tax return will automatically receive the payment. They do not need to file anything else.
Americans who received regular payments from the Railroad Retirement Board or the Department of Veterans Affairs also qualify automatically for the $600 payments.
How many Americans will get these payments? About 160 million people received a payment in the first round of stimulus checks. This time, about 158 million are expected to receive a payment because not as many will qualify for partial payments.
Who won’t get a check? Americans excluded from receiving a payment are the wealthy, “nonresident aliens” and “adult dependents” who can be claimed on someone else’s tax return. This means that some young people ages 18 to 26 will not qualify for a payment.
Are the checks taxable? No.
What happens to people who earned too much in 2019 but lost their job in 2020? Unfortunately, these workers are not eligible for $600 checks right away. They would get the rebate when they file their 2020 taxes in the spring of 2021.
If I owe past taxes, will my check be reduced? No. The payments cannot be garnished for back taxes or by private creditors or debt collectors. This time around, the payments also cannot be reduced for past-due child support.
What if my income is higher in 2020? You do not have to pay the government back. If you get a payment and your 2020 income turns out to be higher than expected, the money does not have to be paid back.
What if I don’t normally file taxes? Do I need to use the nonfiler tool again on the IRS website? No, if you provided information to the IRS on the nonfiler portal during the first round of stimulus checks, you are all set.
Information related to the stimulus payments is being updated daily. Your best resource for these updates will be the IRS website located at www.irs.gov/coronavirus/get-my-payment.