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 were sent out between January 4 and January 20, 2021. If you didn’t receive payments as you should, or if you didn't receive this second payment by January 15, 2021, we will file for the additional amounts on your 2020 taxes.
On March 11, 2021, President Biden signed the American Rescue Plan into Law. Among other things, this Plan is slated to give American's a third round of EIP payments. This plan has tighter phase-out ranges, but provides more money to those who are eligible.
Payments started being dispersed and available beginning March 17, 2021. They will be delivered to Americans based on what was filed on their most recent tax return. If you haven't filed for 2020, the IRS will use the information off your 2019 taxes. If your return was filed with direct deposit information (and you were due refunds), you should receive your 3rd payment via direct deposit. If you owed money or you filed without direct deposit information, keep an eye on your mail for a check or pre-paid card.
Below is a comparison of the most recent round of payments to the first and second rounds.
EIP Round 3
Based off AG from 2019 and/or 2020 tax return
Payments of $1,400 for single filers, $2,800 for married filers
Additional $1,400 for each qualifying dependent
Phase Outs:
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Single: from $75,000 to $80,000
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Married: from $150,000 to $160,000
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Head of Household: $112,500 to $120,000
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 $150,000 to $174,000
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Head of Household: $112,500 to $124,500
EIP Round 1
Based off AG from 2018 and/or 2019 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 $150,000 to $198,000
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Head of Household: $112,500 to $136,500
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?
**This information is based off what as provided for EIP rounds 1 and 2. We don't have guidance yet on
what to do if money is received for a deceased loved one with the new stimulus package**
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