You heard right – a second stimulus payout is on the way. Late on Dec. 27, President Trump signed the massive COVID-19 relief and government spending bill, which includes a second round of stimulus payments to eligible individuals across the country.
To help bring you quickly up to speed, here’s a basic breakdown of the payments.
The important details you want to know The second round of stimulus payments are based on the information reported on your 2019 tax return. Currently, the second stimulus payout is as follows for those eligible: $600 per individual $1,200 per couple $600 per child under the age of 17
*Another COVID-19 relief bill with additional stimulus money is being discussed by Congress but has yet to be passed. Continue to check back here for the most up-to-date information.
Income qualifications for receiving the second payment are similar to the first round. You will receive the full amount if you are: An individual earning less than $75,000 per year A couple earning less than $150,000 per year as a couple
If your Adjusted Gross Income (AGI) is more than those amounts, your stimulus payment will be reduced by $5 for each $100 over the limit. It completely phases out if:
You earn more than $99,000 as a single taxpayer You earn more than $136,500 as Head of Household You earn more than $198,000 as joint filers with no kids
ProTip: Your adjusted gross income includes income like wages, salaries, or interest minus adjustments for specific deductions like student loan interest or retirement contributions. Check line 8b of your 2019 Form 1040 to locate your AGI.
The answers to even more commonly asked questions How does the stimulus payment impact my tax return again?
The stimulus payment is an advance on a tax credit for your 2020 federal tax return. Since 2020 returns are not yet filed, the IRS uses your 2019 return to determine how much money you qualify to receive.
You may get additional money once you file your 2020 return if your situation is different than what was reported on your 2019 return.
For an additional explanation on how the stimulus payments work, check out the blog post .
Is this payment taxable?
No. Like the first stimulus payment, the legislation in this bill states the payment is not taxable. It is an advance on a tax credit associated with your 2020 tax return.
What’s the difference between the stimulus payment, Economic Impact Payment, and the Recovery Rebate?
Nothing. They all mean the same thing. The IRS changed the way they referenced the payments a few times throughout 2020, creating multiple names for the same payment.
When will I receive my money?
Language in the bill states the money must be sent to recipients by Jan. 15, 2021. If you do not receive your payment by that date, you will need to claim the amount you’re owed as a “recovery rebate” on your 2020 federal income tax return.
How do I check the status of my payment?
Currently, the details on how you can check the status of your payment.
Can I change my direct deposit information?
Unfortunately, the IRS’ Get My Payment tool (previously designed for individuals toContinue reading