The second round of Economic Impact Payments is underway.
The Internal Revenue Service and the Treasury Department are now delivering a second round of Economic Impact Payments as part of the Coronavirus Response and Relief Act of 2021 to millions of Americans who received the first round of payments earlier this year.
The initial direct deposit payments are now arriving for some and will continue for the several days. Paper checks mailing began Wednesday, December 30.
The payment amount 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 child. Dependents who are 17 and older are not eligible for the child payment.
The IRS emphasizes that no action is required by eligible individuals to receive this second payment.
Some Americans may see the direct deposit 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 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, according to the IRS.
Payments are automatic for eligible taxpayers
Payments are automatic for 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 online at IRS.gov using the agency’s Non-Filers tool by November 21, 2020 or who submitted a simplified tax return that has been processed by the IRS.
NOTE: IRS Error May Result in Some Delayed Payments
As a result of an Internal Revenue Service error, 15-20 million individuals of the 112 million who were expected to receive their economic impact payments through direct deposit will receive payments via paper check.
The IRS has enabled its Get My Payment portal to allow individuals to view their new Economic Impact Payment status. You can access the portal here.
More information is available at the IRS website.