A second stimulus payment is on the way for millions for Americans.
As a part of the Coronavirus Response and Relief Supplemental Appropriations Act recently signed into law, the IRS announced that they have begun issuing a second round of stimulus payments to eligible tax filers.
Below is a set of FAQs you can read to assist in communicating with clients.
Q: Who is eligible for the second stimulus check?
A: If you have an adjusted gross income (AGI) of up to $75,000 ($112,500 Head of Household, $150,000 married filing jointly), you could be eligible for the full amount of the recovery rebate – $600 for eligible individuals, $1,200 for joint taxpayers, and an additional $600 for each dependent child under 17.
*Note, adjusted gross income (AGI) is your gross income like wages, salaries, or interest minus adjustments for eligible deductions like student loan interest or your IRA deduction. Your AGI can be found on line 8b of your 2019 Form 1040.
As your AGI increases over $75,000 ($150,000 married filing jointly), the stimulus amount will go down. The stimulus check rebate will completely phase out at $87,000 for single filers with no qualifying dependents and $174,000 for those married filing jointly with no dependents.
The same eligibility rules apply to the second stimulus payment as the first one. You must have a valid Social Security number, and you can’t have been claimed as a dependent on someone else’s 2019 tax return.
In general, taxpayers without an eligible Social Security number are not eligible for the payment. However, households with different immigration and citizenship statuses will be eligible to receive $600 per individual and $600 per child with Social Security numbers.
You can check and see if you are eligible for the second stimulus payment and how much you’re eligible for with this online calculator.
Q: I’m eligible for a stimulus check; how do I receive my payment?
A: There is nothing you need to do to get a stimulus payment. The IRS began issuing stimulus payments using the most recent information they have on file, likely from your 2019 tax return, either by direct deposit or by check.
Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail.
The IRS is directing tax filers who have not received their full payment by the time they file their 2020 tax return to claim the Recovery Rebate Credit on this year’s tax return, since these payments are an advance of the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.
Q: When will I receive my stimulus check and how do I track the check?
A: According to the IRS, direct deposit payments have begun being distributed. Paper checks and prepaid debit cards for eligible filers who do not have ACH information on file began being mailed starting Wednesday, Dec. 30, 2020.
The IRS is the only source for when and how your stimulus payment will be distributed. You can check the status of both your first and second payments by using the Get My Payment tool, available in English and Spanish.
Q: If I’m not required to file a tax return, how do I get a second stimulus check?
A: Currently, the IRS will use the information it has on file to deliver stimulus checks, including if you registered using the IRS Enter Payment Information tool in 2020. If you are a Social Security retirement or disability income recipient who doesn’t typically file a tax return, you do not need to take any action to get your stimulus payment because it will be automatically calculated based on information from your 2019 Form SSA-1099 Social Security Benefit Statement or RRB-1099 Social Security Equivalent Benefit Statement, and deposited by the IRS.
If you receive Supplemental Security Income (SSI)m you will automatically receive your stimulus payment with no further action needed. The Treasury Department, not the Social Security Administration, will make these automatic payments to SSI recipients. You will generally receive the automatic payments by direct deposit, Direct Express debit card, or by paper check, just as you would normally receive your SSI benefits.
Veterans and their beneficiaries who receive Compensation and Pension benefit payments from the VA who don’t usually file a tax return, and didn’t file their tax year 2018 or tax year 2019 taxes, also don’t need to do anything and will automatically receive their $600 stimulus check.
If none of these apply, you should be able to file a 2020 tax return and claim the Recovery Rebate Credit to get any payments you deserve during the upcoming filing season.
Q: Will I receive anything for my tax records showing I received a second stimulus payment?
A: The IRS will issue a letter or form that shows the amount of stimulus you were issued for your records. If you didn’t receive a full stimulus payment and you are eligible to claim more in the form of a Recovery Rebate Credit on your 2020 taxes you should have the form showing the amount of your payment in front of you when you sit down to file your taxes.
Q: Can I change my stimulus payment information?
A: The IRS cannot change payment information, including bank account or mailing information. If you are eligible and do not get a payment or it is less than expected, you may be able to claim it on your 2020 tax return as the Recovery Rebate Credit.