Second Round Of Direct Payments: December 2020
The second round of aid, a $900 billion package which was part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021 was signed off by Trump on 27 December 2020. It provided a one-off check of up to $600, but this time, households were also able to claim an additional $600 for child dependents aged 16 or under. Those who earned under $75,000 in the 2019 tax year received the full stimulus check, while a steadily smaller figure was given to those on a higher annual income, up to a maximum phase-out limit of $87,000. The first payments, through direct deposit and paper checks with some later payments made by EIP 2 Cards, were issued between 29 December 2020 and 15 January 2021.
Those who didnt receive a stimulus payment either through the CARES Act or the December Covid-19 Relief bill were able to claim for it retroactively when they filed their federal tax returns for 2020 through the IRS Recovery Rebate Credit.
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Frequently Asked Questions About Stimulus Payments
What is a government stimulus payment?
As part of the American Rescue Plan Act of 2021, the federal government is providing stimulus payments to eligible recipients.
How will I know if I qualify?
Please note: Eligibility criteria outlined in the American Rescue Plan Act of 2021 differs from prior rounds of stimulus payments. Wells Fargo does not have the ability to determine whether you qualify. Your eligibility is determined by the government. To learn more about eligibility and payment amounts, visit IRS.gov/coronavirus.
How will I receive my payment?
If youâre eligible to receive a payment, you will receive the funds in one of these ways:
- By prepaid card. Instead of receiving a paper check, some customers will receive a prepaid card in the mail. Customers are able to use this card like a debit card or transfer funds from their Economic Impact Payment card to their bank account from the Eipcard.com website, from the Money Network Mobile App, or by calling 1-800-240-8100.
Once the IRS begins to distribute payments, the IRS’s Get MY Payment tool will be updated to reflect direct deposit or mailed payment date. The IRS is expected to update the payment status regularly.
When will I receive my payment?
The U.S. Treasury has indicated that payments will be distributed in multiple phases and could take several weeks to distribute, so not everyone will receive payments at the same time.
You can check on the status of your stimulus payment using the IRSâs Get My Payment tool.
What To Do About A Missing Or Stolen Eip Debit Card
At least 5 million people will receive their third stimulus check on a prepaid debit card called the Economic Impact Payment Card, instead of a paper check. For the third payment, the EIP card arrives in a white envelope sent from “Economic Impact Payment Card.” The letter will have a US Department of the Treasury seal.
The card has the Visa name on the front and the issuing bank, MetaBank®, N.A., on the back. Information included with the EIP Card explains that this is your Economic Impact Payment. If you receive an EIP Card, visit EIPcard.com for more information.
If you’ve misplaced or thrown away your card, the EIP card service has an FAQ on what to do if your card is lost or stolen. You can also call 800-240-8100 to request a replacement. It’s free, according to a spokesperson for the Treasury Department. To request a new card, press option 2 when prompted.
However, the EIP card website says, “Your Card will be deactivated to prevent anyone from using it and a new replacement Card will be ordered. Fees may apply.” We recommend calling the above number for a lost or stolen card and speaking to a representative. If you may have lost or thrown away a paper check, read the mail fraud section below.
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Where’s My Stimulus Check
The first stimulus check recipients saw their payments show up in their bank accounts in mid-April. But some people who are also eligible for stimulus checks have not received their money, and they’re puzzled about why that is â and are perhaps in a panic over whether their coronavirus payment is coming at all.
Here are some of the possibilities why you might not have gotten a stimulus payment yet:
Wheres My Stimulus Check
I miss Season One of Covid when we all bonded over Tiger King, Cheer, & stimulus checks.
Northern Mess
The IRS describes these as supplemental payments for people who received payments based on their 2019 tax returns but are eligible for a new or larger payment based on their recently processed 2020 tax returns.
The trigger for these getting sent out, in other words, is a big change in someones income picture revealed by their 2020 federal tax return. The plus-up payments could include a situation where a persons income slipped in 2020 compared to 2019. Or if a person had a new child or dependent listed on their latest tax return, among other situations.
As with most of the stimulus checks weve gotten over the course of this year, recipients dont have to do anything to get one of the plus-up payments. Well, aside from filing a 2020 federal tax return . The IRS automatically makes note of any triggering events, and it sends out these checks accordingly.
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If I Owe Child Support Will I Be Notified That My Tax Return Is Going To Be Applied To My Child Support Arrears
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Yes.You were sent a noticewhenyour case wasinitiallysubmitted for federal tax refund offset.The federal government shouldsend an offset notice toyouwhenyour stimulus rebate paymenthasactuallybeenintercepted. The noticewill tell youthatyourtax returnhas been applied toyour child support debtand to contactthe Child Support Divisionifyoubelieve this was done in error.
People Who Dont File A Tax Return
Question: What if I dont file a 2019 or 2020 tax return?
Answer: Some people dont file a tax return because their income doesnt reach the filing requirement threshold. If thats the case, the IRS will send a third stimulus check based on whatever information, if any, is available to it. That information potentially could come from the Social Security Administration, Railroad Retirement Board, or Veterans Administration if youre currently receiving benefits from one of those federal agencies. If thats the case, youll generally receive your third stimulus payment the same way that you get your regular benefits. If you supplied the IRS information last year through its online Non-Filers tool or by submitting a special simplified tax return, the tax agency can use that information, too.
Some people who receive a third stimulus check based on information from the SSA, RRB, or VA may still want to file a 2020 tax return even if they arent required to file to get an additional payment for a spouse or dependent.
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Im Getting Another Message On The Irs Tracker
If youre getting the Need More Information message on the Get My Payment tracker, then the IRS says it hasnt received enough information to send your payment electronically.
But if you havent received your stimulus check by mail, then again, youll need to claim a Recovery Rebate Credit.
If youre getting the message Please Try Again Later, then youve been locked out of your account for 24 hours.
This might have happened because the information you entered didnt match IRS records, or youve tried to access the site more than five times in 24 hours.
What If I Already Filed My Tax Return But Want To Claim The Unemployment Waiver
More guidance will be available soon about what taxpayers need to do if they’ve already filed a federal income tax return but had jobless benefits in 2020, IRS officials said.
Taxpayers should “absolutely not” file an amended return at this time, IRS Commissioner Rettig said earlier this month. The agency may be able to adjust these returns for people who have already filed, Rettig said.
We believe we will be able to monitor and we will be able to announce that individuals will not have to file amended returns to be able to take the exclusion for the $10,200 per person, Rettig told lawmakers.
We believe that we will be able to handle this on our own,” Rettig added. “We believe that we will be able to automatically issue refunds associated with the $10,200.
For eligible taxpayers who already received refunds, the IRS will issue a second refund associated with the new tax exemption, Rettig said.
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My Stimulus Check Was Mailed How Can I Track My Stimulus Check
You can use the IRS “Get My Payment” tool to find out when your next stimulus payment is expected to hit your bank account or be mailed.
The third round of Economic Impact Payments will be based on a taxpayers latest processed tax return from either 2020 or 2019. That includes anyone who used the IRS non-filers tool last year, or submitted a special simplified tax return.
Before you start entering your information hourly, the IRS says the tool updates once per day, usually overnight and that people should not call the IRS. “Our phone assistors don’t have information beyond what’s available on IRS.gov, the agency says.
Kelly Tyko
Theres A Glitch With Your Bank Tax Prep Software Or The Irs
This explanation may be the most frustrating of all for people wondering where the heck their stimulus checks are. But a mistake made by your bank, the IRS, or the tax-prep software you used to file returns could screw up your stimulus payment.
As the Washington Post reported, the stimulus payments for millions of taxpayers may be delayed because of a glitch with tax-prep software firms, such as TurboTax, H& R Block, and Jackson Hewitt. The IRS might not have direct deposit information for you if you used one of these services and received an advance on your tax refund, or if you paid for the service by deducting the fee from your tax refund. And if the IRS doesnt have your direct deposit info, your stimulus check will be delayed. If you think this situation applies to you, use the IRS Get My Payment app to provide the agency with your direct deposit details.
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Wheres Your $1400 Stimulus Check Heres How To Claim It
The IRS is working to get the checks out, but they also overwhelmed and so are unable to take most calls immediately.
In a mammoth effort to provide much-needed cash to millions of financially struggling Americans, the Internal Revenue Service and U.S. Treasury have confirmed that they have disbursed one hundred fifty-six million coronavirusstimulus checks worth approximately $372 billion under the $1.9 trillion American Rescue Plan.
While millions of Americans already have seen the latest round of payments direct deposited into their respective accounts, there are still plenty of taxpayers who have yet to see a dime from the first two stimulus checks.
Those who fit into this unfortunate category can still try to claim the money that theyre entitled to from the U.S. government. For this tax season, a Recovery Rebate Credit has been added to all returns, so that people mired in this particular situation can eventually get their hands on the overdue payments.
According to the IRS website, it states that if you didnt get any payments or got less than the full amounts, you may qualify for the Recovery Rebate Credit and must file a 2020 tax return to claim the credit even if you dont normally file.
The agency advises that individuals keep the form they receive regarding their stimulus payment and refer to it when filing their tax returns.
Image: Reuters.
How To Use Irs ‘get My Payment’
The IRS also updated frequently asked questions Saturday on how to use the “Get My Payment” tool, which requires users to enter their full Social Security number or tax ID number, date of birth, street address and ZIP code.
But before you start entering your information hourly, the IRS says the tool updates once per day, usually overnight and that people should not call the IRS. Our phone assistors don’t have information beyond what’s available on IRS.gov.
The tool will show the status of when a payment has been issued and the payment date for direct deposit or mail, according to the frequently asked questions. Some will get a message that says “Payment Status Not Available.”
“If you get this message, either we have not yet processed your payment, or you are not eligible for a payment,” the IRS said. “We will continue to send the 2021 Economic Impact Payment to eligible individuals throughout 2021.”
And others will get a “Need More Information” message when using the tool if the payment was returned to the IRS because the post office was unable to deliver it for another reason.
If your address has changed the IRS says the easiest way to update is to “file your 2020 tax return with your current address, if you havent already done so. Once we receive your current address, we will reissue your payment.”
Contributing: Jessica Menton, USA TODAY
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Is The Child Tax Credit Expanded
Yes, the American Rescue Plan includes a temporary increase for the child tax credit for 2021.
The credit is worth $2,000 per child under 17 that can be claimed as a dependent.
It temporarily boosts the credit to $3,000 per child, or $3,600 per child under 6. It allows 17-year-old children to qualify for the first time.
The credit will begin to phase out for those earning more than $75,000 a year, or $150,000 for those married filing jointly. The IRS will look to prior-year tax returns to determine who qualifies for the higher credit. If a return for 2020 hasnt been filed yet, the agency will look to 2019 returns.
Families who aren’t eligible for the higher child credit may still be able to claim $2,000 credit per child.
If you have more tax questions you can submit them here and read earlier answers below.
Do I Still Have A Shot At Qualifying For A Check If I File Now
The situation is still very fluid.
If you didnt qualify for the third round of stimulus checks based on 2019, but you do qualify based on 2020, the next best step is to file your 2020 taxes as soon as possible, tax experts say.
If the IRS processes it in time, theyll use the most recent year to qualify taxpayers for the third round of economic stimulus payments, says Meredith Tucker, tax principal at Kaufman Rossin, one of the largest CPA and advisory firms in the U.S. But, if you are passed over for round three because your 2020 tax return hasnt been submitted or processed in time, then you should be able to claim a credit on your 2021 taxes.
Filing a tax return early is always a best practice and proven this year with the stimulus checks to those who have already filed, says Steber. As to filing now and still getting a check, the IRS has not detailed timing and impact, but it is certainly possible, especially if your tax situation changed from 2019 to 2020.
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More Third Stimulus Payment Money For Some In 2022
Parents who added a child in 2021 could be getting up to $1,400 after they file their 2021 taxes this coming spring thanks to the American Rescue Plan. The money won’t come as a direct check but will be part of the overall tax return.
The 2021 Economic Impact Payment — colloquially known as the third stimulus check — was actually an advance on what is called the 2021 Recovery Rebate Credit. What that means is that the $1,400 stimulus check most individual Americans received in 2021 is, in fact, money they would have gotten after filing their taxes in the spring of 2022 as a Recovery Rebate Credit.
In other words, millions of Americans already got part of their tax refund 12 months early.
“The bottom line is that’s money that’s going out almost immediately to millions of people as a tax credit in advance of putting it on a tax return in the next year,” said Raphael Tulino, IRS spokesman.
However, the IRS was going off of 2019 or 2020 tax returns for its information on the third EIP. It was using that information to determine if taxpayers would get stimulus money for their dependents. If eligible parents had a child born into their family in 2021, they can request the Recovery Rebate Credit on their taxes to get the payment for that child.
It gets more complicated with adoption because all the paperwork and processes to finalize the adoption must be completed first.
This does not pertain to the first or second stimulus payments that were paid in 2020.
How To Check The Status Of Your Coronavirus Stimulus Check
If you’re trying to find out the status of your coronavirus stimulus payment, go to the IRS’s Get My Payment page. You can learn whether your payment has been issued, and if it’s coming by direct deposit or mailed check.
Learn more about the stimulus payments, including whether you qualify for one and what, if anything, you may have to do to get yours.
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