Economic Impact (Stimulus) Payments
With the number of American Workers laid off, furloughed, or even fired due to the Coronavirus Pandemic, lawmakers in DC have passed legislature giving Americans Stimulus Payments (Economic Impact Payments or EIP) to help alleviate the financial strain.
The first round of stimulus payments started going out in April 2020, with the last of the payments being sent out in December 2020. On December 27, 2020, President Donald Trump signed a bill for a second round of payments. These payments are set to be sent out by the beginning of 2021. Below is a breakdown of the first round of payments compared to the second round.
Like the first round of payments, these payments come with phase outs where the payments will be reduced. If your income is below the range, you are most likely receiving a payment. if you're above the range, you are most likely not receiving a payment.
If you didn’t receive payments as you should, or if you don’t receive this second payment by January 15, 2021, we will file for the additional amounts on your 2020 taxes. Payments will be issued for the second round the same as the first. What this means is that if you received the first payment via direct deposit, be on the look out for that payment being deposited to that same account. If you received the first payment as a check, be on the look out for the second payment coming as a check.
Below is a comparison of the second round of payments to the first.
EIP Round 2
Based off AG from 2019 tax return
Payments of $600 for single filers, $1,200 for married filers
Additional $600 for each qualifying child age 16 or younger
Phase Outs:
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Single: from $75,000 to $87,000
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Married: from $50,000 to $174,000
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Head of Household: $112,500 to $124,500
EIP Round 1
Based off AG from 2018 and/or2019 tax return
Payments of $1,200 for single filers, $2,400 for married filers
Additional $500 for each qualifying child age 17 or younger
Phase Outs:
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Single: from $75,000 to $99,000
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Married: from $50,000 to $198,000
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Head of Household: $112,500 to $136,500
Get My Payment
The IRS has released a tool for taxpayers to track when they can expect their Stimulus Payments direct deposited or mailed out. This tool is available here:
Scams
With this Stimulus Payment, scammers are on the rise. Please remember,
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Government agencies will not call, text, or email you requesting information for stimulus payments.
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Be aware of phishing calls, emails, or texts that include language such as: “In order to receive your client’s stimulus payment by direct deposit, you must confirm their bank information.”
What do I do if I received money for a deceased loved one?
Did you receive a stimulus (economic impact) payment for deceased loved one? Below, you’ll see how to send that money back to the IRS.
Who should payment be returned for?
Payments should be returned for any taxpayer that passed away on or before receipt of payment. Return only the portion appropriate for the deceased taxpayer. In the event that one spouse passed away and not the other, $1,200 should be returned to the IRS, unless adjusted gross income exceeded $150,000.
If the payment was received in the form of a paper check and has not been cashed yet:
· Write “Void” in the endorsement section on the back of the check.
· Mail the voided check to the address below with a note explaining the returned check. Note: This could be something as simple as “John Smith passed away in January, 2020.”
The IRS is asking for the checks to be returned without staples, bends, or paper clips, if possible.
If the payment was received in the form of a paper check, but has been cashed, or the payment was received in the form of a direct deposit:
· Send a check or money order to the address below for the amount needing to be returned.
· Make sure to write “2020EIP”, and the social security number (or individual taxpayer identification number) of the individual on the check. Make the check payable to “US Treasury” and include a note explaining the returned amount. Note: This could be something as simple as “John Smith passed away in January, 2020.”
Michigan Residents Return/Send payments to:
Kansas City Refund Inquiry Unit
333 W Pershing Rd
Mail Stop 6800, N-2
Kansas City, MO 64108