Second Economic Impact Payments: What You Should Know
As part of the Coronavirus Response & Relief Supplemental Appropriations Act of 2021, many Americans have already received a second round of Economic Impact Payments. Some payments were deposited as early as December 29th, ahead of the official January 4th payment date, and will continue into January for qualified taxpayers. Read on for important information and resources related to the second round of Economic Impact Payments.
Payment Eligibility and Status
Eligibility is based on on your adjusted gross income (AGI) for recently filed taxes. Typically, each qualified individual will receive $600 as shown below. For more information and eligibility guidelines, visit IRS.gov/eip. To check your payment status, visit IRS.gov/getmypayment.
Tips for Spending Payments
In times of uncertainty and change, it's more important than ever to evaluate your budget, priority expenses, and emergency savings. Every situation is different - making a plan based on your current circumstances, can help you maximize the payment you receive.
· If your regular household income has been decreased, consider using this stimulus money to pay for priority expenses.
· If you're still receiving your regular pay and do not have at least 3 months of expenses saved, consider using this money to build your emergency savings.
· If you're still receiving your regular pay and have adequate emergency savings, consider using this stimulus money to pay down or pay off debt.
· If you're still receiving your regular pay, have adequate emergency savings, and no debt, consider investing this stimulus money or donating it to charity.
Additional Resources and Information
· Most people won’t need to take any action – in most cases payments will automatically be deposited using information on file with the IRS.
· Payments will arrive via direct deposit or by mail – if direct deposit information is on file with the IRS payments should be received that way. If not, payments will be received by mail as a check or debit card. For more information on payments via debit card, visit EIPcard.com.
· More people may be eligible for EIP 2 payments – the 2021 act expands payment eligibility for joint filers where only one filer has a Social Security Number.
· You may still be eligible if you didn’t file a tax return or register with the IRS non-filers tool – if you meet eligibility requirements but did not file a tax return or register with the IRS.gov non-filers tool, you can claim the Recovery Rebate Credit when you file your 2020 federal tax return.
· Most Social Security retirement and disability beneficiaries, railroad retirees, and those receiving veterans’ benefits do not need to take any action – the IRS worked with relevant federal agencies to obtain information needed to send payments, the way they are typically received, for this group.
· Updated information is available on the IRS website - Visit IRS.gov for the complete IRS news release related to the second round of Economic Impact Payments.