Some of you may have already received your money from the second stimulus package that recently passed but it is important to note that the amounts and calculations are different this time around.
The Basics:
- IRS began issuing payments via direct deposit on December 29, 2020.
- Standard payment amounts are $600 for each qualifying U.S. citizen, resident alien, and dependent child under age 17, based on adjusted gross income (AGI) limits. (See chart below)
- Payment amounts are reduced by $5 for every $100 above the determined income thresholds.
- Confirmed direct deposit accounts will receive payments first, followed by mailed paper checks.
- Please note: The IRS has not set up a procedure to change your direct deposit information through their website at this time, so if your direct deposit information has changed in the last year, you will likely need to wait for a paper check. Attempting to change your direct deposit information through the IRS website at this time may jeopardize your electronic filing for tax year 2020.
How much can you expect?
The graphic below shows the standard payments based on income limits.
Payments are reduced by $5 per $100 above the qualifying income thresholds, and will phase out completely at $87,000 AGI for individuals and $174,000 AGI for couples filing jointly.
We found an article on the Forbes Advisor website that provides an excellent comprehensive overview of the second round stimulus package, including a payment calculator and notable changes from the original CARES Act that was passed last spring. You can read the entire article here.
The IRS website also issued a press release regarding details of the second round stimulus, which can be found on their website here.
