December 28, 2020
Congress has finally reached an agreement on sending out a second round of government stimulus checks. The $900 billion stimulus deal was signed by President Trump on the evening of Sunday, December 27. Continue reading to learn how much you will receive, when it might arrive, and how you will get it.
When are stimulus payments anticipated to go out?
If the IRS has your direct deposit information, the first payments are expected to go out as early as the first week of January. Otherwise, checks are expected to be mailed beginning in January. You can check the IRS website for the latest information.
How much will stimulus payments be and who gets one?
Single people who make up to $75,000 will receive a $600 payment, and married couples who make up to $150,000 will receive $1,200. This is exactly half of the amount that was paid out through the CARES Act.
For those with income above those amounts, the payment is reduced by $5 for each $100 above the $75,000/$150,000 thresholds.
Parents of qualifying dependents will actually receive more money in the second round of stimulus payments. Parents are expected to get $600 per qualifying child. The CARES Act only gave $500.
The IRS will calculate the payment based on your 2019 tax return, just like they did for the CARES Act.
|Adjusted Gross Income:||$75,000 or less||$75,001-$98,999||$99,000+|
|Stimulus Amount:||$600||Subtract $5 for every $100 over $75k you earn||Not Eligible|
MARRIED JOINT FILING COUPLES
|Adjusted Gross Income:||$150,000 or less||$150,001-$197,999||$198,000+|
|Stimulus Amount:||$1200||Subtract $5 for every $100 over $150k you earn||Not Eligible|
Parents may receive up to $600 for each qualifying child.
How will the IRS know where to send my payment?
The economic impact payment will be deposited into the banking account or mailed to the address on file with the IRS. If you didn’t modify your payment information at the IRS, this will be the same account or address where you received your first stimulus payment.
If you didn’t receive the first stimulus payment, check with the IRS to see if you are still eligible. Please note, the IRS’s “Get My Payment” portal is temporarily offline as the IRS considers updates to the page. In the interim, we encourage you to monitor the page for updates or review the IRS’ Frequently Asked Question Page for more information.
How long will the economic impact payments be available?
It is still not clear. The stimulus bill sets a January 15, 2021 deadline for the IRS to distribute the payments. However, if the payments are not distributed before that date, you would need to claim the payment in your 2021 tax filing. Since the situation is evolving quickly, we encourage you to monitor the IRS website for updates.
What else is included in the stimulus deal?
The following was also included in the stimulus deal reached by Congress:
- A $300 weekly federal enhancement in unemployment benefits for 11 weeks
- The extension of pandemic unemployment programs: Pandemic Unemployment Assistance and Pandemic Emergency Unemployment Compensation
- It reopens the Paycheck Protection Program for small businesses
- $92 billion in funding for schools and child care
- $25 billion in rental assistance
- 15% raise in SNAP benefits for six months
- Funding for the coronavirus vaccine
Where can I get more information?
The IRS will post all important information on IRS.gov/coronavirus as soon as it becomes available. Please continue to check that page for updates.