January 21, 2022

Second Stimulus Checks: IRS Says All December $600 Payments Sent

The IRS had to issue the payments in mid-January so they could proceed to processing this year’s tax returns.
Eligible individuals who have changed bank accounts or changed bank accounts since filing their 2019 tax returns may not have received the money, but will be able to claim it on their 2020 tax returns. Those who are not required to file federal taxes because they earn too little maybe missed too and will have to file a return this year to get the money.
More than 147 million payments were made for the second round, which was approved by Congress in late December. About $142 Billion Shipped Which Helps boost retail sales in January for the first increase in months.

Who is eligible?

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

The smaller payments were phased out more quickly, cutting off individuals earning more than $87,000 a year and childless couples earning more than $174,000 a year.

The first two rounds of incentive payments were based on a taxpayer’s income in 2019. That means someone who has lost their job or has otherwise seen their income fall drastically in 2020 may be eligible for more money than they first received. .

If so, they can claim a “Recovery Rebate Credit” on their 2020 tax return. The creditworthiness and the amount of credit are based on the income of the tax year 2020.

Anyone who may have earned more in 2020 than in 2019 does not have to repay money already received.

Congress considers third round of payments

Congress negotiates a new incentive package that may include a third round of stimulus checks. House Democrats have proposed sending outright payments worth up to $1,400 per person. A family of four could receive up to $5,600.

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

But not everyone who has received a previous stimulus check is eligible for this round. The payments would disappear faster and completely cut off individuals earning more than $100,000 and families earning more than $200,000, no matter how many children they have.

The benefit is calculated based on 2019 or 2020 income. Unlike the previous two rounds, adult dependents would be eligible for the payments.

Lawmakers hope to pass legislation by mid-March. The full House may vote on the bill next week, but it could face hurdles in the Senate.

Leave a Reply

Your email address will not be published. Required fields are marked *