What you need to know about incentive payments, payments with economic impact – Community News
Stimulus Check

What you need to know about incentive payments, payments with economic impact

The IRS said people don’t need to take any action to receive the second stimulus payment because they are automatic. The agency said citizens should not contact their banks, financial institutions or the IRS with questions about the timing of their payments.

At least one financial institution reported higher-than-normal online traffic volumes Friday morning as people checked their bank accounts.

According to IRS information released in June, more than 6 million Ohio residents received a stimulus check in the first round of payments that is part of the federal CARES law. Ohioans received more than $10 billion in payments.

The first economic impact payments were $1,200 for most recipients who qualified.

Kyle Pomerleau, a resident of the American Enterprise Institute, said about 89% of all households (158 million Americans) will receive a payment in this round.

FILE - This April 23, 2020 file photo shows President Donald Trump's name on a stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak in San Antonio.  Hundreds of thousands of dollars in coronavirus relief payments have been sent to people behind bars in the United States, and now the IRS is asking state officials to help recover the money the federal tax authorities say was sent by mistake.  (AP Photo/Eric Gay, File)
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FILE – This April 23, 2020 file photo shows President Donald Trump’s name on a stimulus check issued by the IRS to help combat the adverse economic effects of the COVID-19 outbreak in San Antonio. Hundreds of thousands of dollars in coronavirus relief payments have been sent to people behind bars in the United States, and now the IRS is asking state officials to help recover the money the federal tax authorities say was sent by mistake. (AP Photo/Eric Gay, File)

The IRS has issued about 160 million stimulus checks worth about $270 billion for the first round of economic impact payments to eligible Americans, according to the AARP.

Pomerleau expects the number of recipients to decline as fewer households receive partial payments.

“This is happening because of the way the payment gradually fades with income,” he said. “Overall, I estimate that the number of households receiving partial benefits will fall from about 7% of households to 4.5% of households.”

The new payments were authorized by the recently passed COVID relief legislation.

The payments are generally $600 for singles and $1,200 for married couples filing joint returns. Eligible households will also receive $600 for each eligible child.