Much like 2020, there are a lot of uncertainties surrounding the second round of economic impact payments. Do I qualify? When will I receive it? Has the IRS started sending out payments? Have no fear! We have done the heavy lifting and provided the most commonly asked questions and the answers from the IRS.
Q: Who's eligible for the second round of Economic Impact Payments?
A: Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200 for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid for employment (see exception when married filing joint) and your adjusted gross income (AGI) does not exceed:
- $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
- $112,500 if filing as head of household; or
- $75,000 for eligible individuals using any other filing status
Your payment will be reduced by 5% of the amount by which your AGI exceeds the applicable threshold above.
You aren’t eligible for a payment if any of the following apply to you:
- You were claimed as a dependent on another taxpayer’s 2019 tax return (for example, a child or student who may be claimed on a parent’s tax return or a dependent parent who may be claimed on an adult child’s tax return).
- You don’t have an SSN that is valid for employment issued before the due date of your 2019 tax return (including any extensions).
- You’re a nonresident alien.
- People who died before 2020.
- Are an estate or trust.
However, you may be eligible to claim a Recovery Rebate Credit on line 30 of your 2020 tax return. Please refer to the instructions for the 2020 Form 1040 for more information.
Q: When will the IRS start sending out the second round of economic impact payments (Second EIP)?
A: Payments started during the last week of December with more payments occurring in early January 2021. Direct deposit payments will be made first – those individuals who have valid routing and account information on file will receive payments first.
Mailed payments will follow – individuals who will receive a paper check or a debit card will require more processing and mailing time. As more information becomes available, we will provide updates.
IRS plans to relaunch the Get My Payment online tool soon to include Second EIP information.
Q: I didn't receive a direct deposit yet. Will I get a second Economic Impact Payment?
A: Maybe. IRS updated Get My Payment (GMP) for individuals who are receiving the second Economic Impact Payment on January 5, 2021. If you checked GMP on or after January 5 then:
- If GMP reflects a direct deposit date and partial account information, then your payment is deposited there.
- If GMP reflects a date your payment was mailed, it may take up to 3 – 4 weeks for you to receive the payment. Watch your mail carefully for a check or debit card. (See the FAQ for EIP Card)
- If GMP shows “Payment Status #2 – Not Available,” then you will not receive a second Economic Impact Payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.
Because of the speed at which the law required the IRS to issue the second round of Economic Impact Payments, some payments may have been sent to an account that may be closed or, is or no longer active, or unfamiliar. By law, the financial institution must return the payment to the IRS; they cannot hold and issue the payment to an individual when the account is no longer active. If Get My Payment shows “Payment Status #2 – Not Available” you will not receive a second EIP.
The IRS advises people that if they don’t receive their Economic Impact Payment, they should file their 2020 tax return electronically and claim the Recovery Rebate Credit on their tax return to get their payment and any refund as quickly as possible.
Q: What if I have a different bank account than I had on my 2019 tax return? What should I do?
A: If the second Economic Impact Payment was sent to an account that is closed or is no longer active the financial institution must , by law, return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active. The IRS advises people that if they don’t receive the full Economic Impact Payment they should file their 2020 tax return electronically and claim the Recovery Rebate Credit on their tax return to get their payment and any refund as quickly as possible.
Q: I'm having trouble accessing the Get My Payment tool.
A: Some people visiting the site may get a “please wait” or error message due to the high volumes coming in. The “please wait” message is a normal part of the site’s operation. We encourage people to check back later. Also, there is a limit to the number of times people can access Get My Payment each day. When people reach the maximum number of accesses, Get My Payment will inform them they will need to check back the following day.
Q: Where can I get more information?
A: For more information about Economic Impact Payments and the 2020 Recovery Rebate Credit, visit IRS.gov/eip. People can check the status of their payment at IRS.gov/getmypayment. For other COVID-19-related tax relief, visit IRS.gov/coronavirus.
If you have not filed your taxes yet, Ascentra members can save by using TurboTax. Learn more about this offer here.
This information was provided by the IRS. For all other economic impact payment FAQs please visit the IRS website here.