WASHINGTON – The Internal
Revenue Service today urged people to visit IRS.gov for the most current
information on the second round of Economic Impact Payments rather than calling
the agency or their financial institutions or tax software providers. IRS phone
assistors do not have additional information beyond what’s available on
IRS.gov.
The IRS and the Treasury Department began issuing a second round of Economic
Impact Payments, often referred to as stimulus payments, last week.
The direct deposit payments may
take several days to post to individual accounts. Some Americans may have seen
the direct deposit payments as pending or as provisional payments in their
accounts before the scheduled payment date of Jan. 4, 2021, which is the
official date funds are available.
Paper checks also began going
out and will continue to be sent through January. Some people will be mailed
debit cards in January, and the IRS urges people to carefully check their mail.
Mailed payments will require more processing and mailing time. Those who reside
abroad will have longer wait times for checks as disruptions to air travel and
mail delivery in some countries will slow delivery.
The IRS emphasizes that there
is no action required by eligible individuals to receive this second payment.
The payments are automatic, and people should not contact their financial
institutions or the IRS with payment timing questions.
Eligibility
Generally, U.S. citizens and resident aliens who are not eligible to be claimed
as a dependent on someone else’s 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. Most people who have an adjusted gross income
for 2019 of up to $75,000 for individuals and up to $150,000 for married
couples filing joint returns and surviving spouses, will receive the full
amount of the second payment. For filers with income above those amounts, the
payment amount is reduced.
Checking
the status of a payment
Starting today, people can check the status of both their first and second
payments by using the Get My Payment tool, available in English and Spanish only
on IRS.gov.
Payment not
received or less than expected? Claim on 2020 tax return
Payments started going out last week and will continue through mid-January.
Direct deposit payments are being made first to those that have valid routing
and account information on file for direct deposit purposes. Because of the
speed at which IRS issued this second round of payments, some payments may have
been sent to an account that may be closed or no longer active. 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. While
the IRS is exploring options to correct these payments, if you have not
received your full payment by the time you file your 2020 tax return, you may
claim the Recovery Rebate Credit on your tax return.
The credit is figured like the
Economic Impact Payment, except that the credit eligibility and the credit
amount are based on the 2020 tax year information, including income.
For people who received a
partial Economic Impact Payment, they can take the Recovery Rebate Credit for
any remaining amount they’re eligible for by completing line 30 of the 2020
Form 1040 or 1040-SR.
Changing
bank account or mailing information
The IRS cannot change payment information, including bank account or mailing
information. If an eligible taxpayer does not get a payment or it is less than
expected, it may be claimed on the 2020 tax return as the Recovery Rebate
Credit. Remember, Economic Impact Payments are an advance payment of what will
be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.
More information
For more information about Economic Impact Payments and the 2020 Recovery Rebate Credit, visit IRS.gov/eip. Starting next week, people can check the status of their payment at IRS.gov/GetMyPayment. For other COVID-19-related tax relief, visit IRS.gov/Coronavirus.
(Source: IRS Issue Number: IR-2021-01 )