Second stimulus check: The IRS says all December $ 600 payments have been sent
Second stimulus check: The IRS says all December $ 600 payments have been sent

Second stimulus check: The IRS says all December $ 600 payments have been sent

The IRS was required to issue the payments in mid-January so that it could proceed to processing this year’s tax returns.
Eligible individuals who have moved or changed bank accounts since filing their tax return for 2019 may not have received the money, but may claim it on their tax return for 2020. Those who are not required to file federal taxes because they earn for little perhaps also missed and will have to submit a feedback this year to get the money.
More than 147 million payments were issued for the second round, which was approved by Congress in late December. About $ 142 billion was sent to help increase retail sales in January for the first increase in months.

Who is eligible?

Not everyone who received money in the initial round of $ 1,200 payments that went out last spring was eligible for the second $ 600 check.

The smaller payments were phased out faster and cut off people earning more than $ 87,000 a year and couples without children earning more than $ 174,000 a year.

The first two rounds of stimulus payments were based on a taxpayer’s 2019 income. This means that a person who lost his job or otherwise saw his income drop drastically in 2020 may be entitled to more money than they first received.

If so, they may require a “Recovery Discount Credit” on their tax return for 2020. The credit rating and the credit amount will be based on the 2020 tax year income.

Those who may have earned more in 2020 than in 2019 should not pay back money they have already received.

Congress is considering a third round of payments

Congress negotiates a fresh stimulus pack which may include a third round of stimulus checks. Democrats in the House have proposed sending direct payments worth up to $ 1,400 per month. person. A family of four can receive up to $ 5,600.

Individuals earning less than $ 75,000 a year and married couples earning less than $ 150,000 will receive the full amount.

But not everyone who has received a previous stimulus check would be eligible for this round. Payments would phase out faster and completely cut off people earning more than $ 100,000 and families earning more than $ 200,000 – no matter how many children they have.

The payment will be calculated based on either 2019 or 2020 income. Unlike the previous two rounds, adult relatives would be eligible for the payments.

Legislators hope to pass legislation by mid-March. The full house can vote on the bill as early as next week, but it could face obstacles in the Senate.

Leave a Reply

Your email address will not be published.