January 2020 Impact Payments FROM PAGE 1


payments as pending or as provisional payments in their accounts before the official payment date of January 4, 2021. The IRS reminds taxpayers that the payments are automatic, and they should not contact their financial institutions or the IRS with payment timing questions. As with the first round of


payments under the CARES Act, most recipients will receive these payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way. Anyone who received the first round of payments earlier this year but doesn’t


Authorized by the newly


enacted COVID-relief legislation, the second round of payments, or “EIP 2,” is generally $600 for singles and $1,200 for married couples filing a joint return. In addition, those with qualifying children will also receive $600 for each


qualifying eligible taxpayers Payments are automatic child.


Dependents who are 17 and older are not eligible for the child payment. Payments are automatic


for for


receive a payment via


direct deposit will generally receive a check or, in some instances, a debit card. For those in this category, the payments will conclude in January. If additional


legislation is enacted


to provide for an additional amount, the Economic Impact Payments that have been issued will be topped up as quickly as possible. Eligible individuals who did not


receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it. People will see the Economic Impact Payments (EIP) referred to as the Recovery Rebate Credit (RRC) on Form 1040 or Form 1040-SR since the EIPs are an advance payment of the RRC.


“Throughout this challenging


year, the IRS has worked around the clock to provide Economic Impact Payments and critical


taxpayer


services to the American people,” said IRS Commissioner Chuck Rettig. “We are working swiftly to distribute this second round of payments as quickly as possible. This work continues


throughout the holidays


and into the new year as we prepare for the upcoming filing season. We urge everyone to visit IRS.gov in the coming days for the latest information on these payments and for important information and assistance with filing their 2021 taxes.”


eligible taxpayers who filed a 2019 tax return, those who receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t file a tax return. Payments are also automatic for anyone who successfully registered for the first payment the


online at agency’s Non-Filers tool


IRS.gov using by


November 21, 2020 or who submitted a simplified tax return that has been processed by the IRS. Who is eligible for the second Economic Impact Payment? Generally, U.S. citizens


and


resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax


return


are eligible for this second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child. Generally, if you have adjusted gross income for 2019 up to $75,000 for individuals and up to $150,000 for married couples filing joint returns and surviving spouses, you will receive the full amount of the second payment. For filers with income above those amounts, the payment amount is reduced. How do I find out if the IRS is sending me a payment?


People can check the status of


both their first and second payments by using the Get My Payment tool, available in English and Spanish only on IRS.gov. The tool is being updated with new information, and the IRS anticipates the tool will be available again in a few days for taxpayers. How will the IRS know where to


send my payment? What if I changed bank accounts?


The IRS will use the data


already in our systems to send the new payments. Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail. For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021. Remember, the Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR. Will people receive a paper check


or a debit card?


For those who don’t receive a direct deposit by early January, they should watch their mail for either a paper check or a debit card. To speed delivery of the payments to reach as many people as soon as possible, the Bureau of the Fiscal


Service, part


of the Treasury Department, will be sending a limited number of payments out by debit card. Please note that the form of payment for the second mailed EIP may be different than for the first mailed EIP. Some people who received a paper check last time might receive a debit card this time, and some people who received a debit card last time may receive a paper check.


IRS and Treasury urge eligible people who don’t receive a direct deposit to watch their mail carefully during this period for a check or an Economic


Impact


which is sponsored by the Treasury Department’s Bureau of


Payment the


Fiscal


Service and is issued by Treasury’s financial agent, MetaBank®, N.A. The Economic Impact Payment Card will be sent in a white envelope that prominently


displays the U.S.


Department of the Treasury seal. It has the Visa name on the front of the Card and the issuing bank, MetaBank®, N.A. on the back of the card. Information included with the card will explain that this is your Economic information


Impact about


the


Payment. More these


cards earlier is


available at EIPcard.com. Are more people eligible now for a payment than before? Under


CARES Act, joint returns of couples where card,


only one member of the couple had a Social Security number were generally


ineligible for a payment


– unless they were a member of the military. But this month’s new law changes and expands that provision, and more people are now eligible. In this situation, these families will now be eligible to receive payments for the taxpayers and qualifying children of the family who have work-eligible SSNs. People in this group who don’t receive an Economic Impact Payment can claim this when they file their 2020 taxes under the Recovery Rebate Credit.


Is any action needed by Social


Security beneficiaries, railroad retirees and those receiving veterans’ benefits who are not typically required to file a tax return?


Most Social Security retirement


and disability beneficiaries, railroad retirees and those receiving veterans’ benefits do not need take any action to


receive a payment. Earlier this


year, the IRS worked directly with the relevant federal agencies to obtain the information needed to send out the new payments the same way benefits for this group are normally paid. For eligible people in this group who didn’t receive a payment for any reason, they can file a 2020 tax return. I didn’t file a tax return and didn’t


register with the IRS.gov non-filers tool. Am I eligible for a payment? Yes, if you meet the eligibility


requirement. While you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit when you file your 2020 federal income tax return. Will I receive anything for my tax records showing I received a second Economic Impact Payment? Yes. People will receive an IRS


notice, or letter, after they receive a payment telling them the amount of their payment. They should keep this for their tax records. Where


can


information? Economic


I the 2020 Recovery get For more information


more about


Impact Payments and Rebate, key


information will be posted on IRS.gov/ eip. Later this week, you may check the status of your payment at IRS.gov/ GetMyPayment. For other COVID- 19-related tax relief information, visit IRS.gov/Coronavirus.


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