The IRS and the Treasury department began issuing a second round of Economic Impact Payments last week as part of the Consolidated Appropriations Act. Most individuals making up to $75,000 per year will receive a direct payment of $600; married couples making up to $150,000 per year will receive $1,200; and eligible individuals with children will receive $600 for each qualifying child dependent. Dependents who are 17 and older are not eligible for the child payment.
Economic Impact Payments may arrive in the following ways:
- Direct Deposit
Most recipients will receive their payment via direct deposit. According to the IRS, direct deposit payments may take several days to post to individual accounts. Some Americans may see the payments as “pending” or as provisional payments in their accounts before the funds are available.
- Paper Checks
Paper checks have also started to go out via the mail, and will continue to be sent through January, so be sure to carefully check your mail.
- Debit Cards
Some people will also be mailed debit cards in January. Again, be sure to carefully check any mail received.
Mailed payments may require more processing and delivery time, and those who reside abroad will have longer wait times. You may check the status of both your first and second Economic Impact Payment by using the Get My Payment tool on the IRS website.
There is no action required by eligible individuals to receive their Economic Impact Payment, the payments are automatic. The IRS has urged people to visit www.irs.gov for the most current information, rather than calling the agency or their financial institutions.
Eligible individuals who did not receive an Economic Impact Payment this year—either the first or second payment—will be able to claim it when they file their 2020 taxes in 2021.
More information about Economic Impact Payments is available on the IRS Website.
If you have questions about your payment, or claiming it on your tax return this year, please leave a comment below or contact me directly, I’m happy to help!