How to Pass the Second COVID Check

On Monday, Congress passed the second COVID-19 relief bill, which includes one-time direct payments totaling up to $ 600 per person. But how soon will people get their checks? Here’s what you need to know about direct payments and when you will receive them.

Who is eligible and for how much?

American adults with an annual gross income of less than $ 75,000 will receive a check for $ 600, and couples earning less than $ 150,000 will receive $ 1,200. IRS applicants listed as “ heads of household ” and earning $ 112,500 or less will also receive $ 600. Dependents under the age of 17 are also eligible for benefits, and the amount is actually $ 100 higher than the previous check, now $ 600 instead of $ 500. This means that a family of four with income below the threshold can receive up to $ 2,400.

If your income exceeds the threshold, payments will be reduced. The closer you get to $ 87,000 for individuals and $ 174,000 for couples, the less money you get. Use this calculator to estimate how much money you can expect from a direct payment.

In addition to income thresholds, to be eligible for benefits, you must be a US citizen, permanent resident or eligible resident alien (undocumented resident), not dependent on another taxpayer, and have a valid social security number for work.

How will the checks be sent?

Most Americans won’t need to do anything to get paid. If you have already provided your bank account information to the IRS, checks will be sent by direct transfer. Recipients of retirement benefits and persons with disabilities, railroad retirees and persons receiving veteran benefits will also automatically transfer money to their accounts.

Alternatively, if you have not set up a direct bank transfer, the IRS will use the address of your tax return for 2019 to send your checks directly, but otherwise as an alternative would be to use the address of your tax return for 2018.

Some recipients may receive an Economic Impact Payment Card (EIP) , which is a pre-loaded debit card that will be mailed in a plain, inconspicuous envelope, so don’t accidentally throw it away.

What if I moved?

If you move as a result of COVID, the Treasury may not know where to send your paper check or EIP card . You can file a change of address form with the USPS or IRS , but it can take at least four to six weeks, so the check can still be mailed to your old address.

Fortunately, the IRS Get My Payment tool , which helps people track their payments and update their direct bank deposit information, is still working and is expected to be active in the second round of payments, according to NJ.com .

What if I still haven’t received my first payment?

If you are not paid or the amount received is incorrect, you can claim a “ Repayable Recovery Credit ” on Form 1040 or 1040-SR when you file your 2020 tax return the following year.

Will I receive payment in 2020?

According to Treasury Secretary Steven Mnuchin, incentive checks could go to people’s bank accounts as early as next week. This may be true for most recipients, but again, some people are still waiting for their first bailout checks, nine months after the Treasury started sending them out . On the other hand, the rollout of the second round of reviews is expected to be smoother as more people subsequently signed up for the direct translation – if you signed up for the direct translation, expect to be one of the first recipients of the second. relief check.

While it remains unclear if this will happen before the end of the year, CNET suggests people will be able to receive direct deposits starting the week of January 4 if Trump signs the bill today. But that is speculation, and it depends on a faster deployment than we saw last spring. This story was updated on December 22, 2021 with new information.

More…

Leave a Reply

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