Where is my Economic Impact Payment?
Posted on January 13, 2021
Because of IRS staff shortages and the sheer volume of people looking for information on the timing of their Economic Impact Payment, Teipen CPA Group strongly recommends using the IRS website rather than calling the agency, your financial institution or tax software providers.
Here is what we know:
- The IRS and the Treasury Department began issuing a second round of Economic Impact Payments or stimulus payments, the first week of January.
- January 4, 2021 is the official date funds began to be made available.
- The IRS states no action is required by eligible individuals to receive this second payment. The payments are automatic.
- Most will be in the form of direct deposit payments, which may take several days to post to individual accounts.
- Paper checks also began going out and will continue to be mailed throughout January. Mailed payments will require more processing and mailing time.
- Some people will be mailed debit cards in January, so please check your mail carefully.
- Those who reside abroad will have longer wait times for checks due to disruptions in air travel and slower mail delivery in some countries.
Who is eligible to receive a check?
- Generally, U.S. citizens and resident aliens who are not claimed as a dependent on someone else’s income tax return are eligible for this second payment.
- Eligible individuals will automatically receive an Economic Impact Payment of up to $600 for individuals or $1,200 for married couples, and up to $600 for each qualifying child.
- Most people who have an adjusted gross income for 2019 of up to $75,000 for individuals and up to $150,000 for married couples filing joint returns, will receive the full amount of the second payment.
- For filers with income above those amounts, the stimulus payment amount is reduced.
What if your payment was not received – or you changed banks or moved since your last payment?
- Some payments may have been sent to an account that may be closed or no longer active. If this happens, by law, the financial institution must return the payment to the IRS. The financial institution cannot hold and issue the payment to an individual when the account is no longer active.
- The IRS cannot change payment information, including bank account or mailing information.
- While the IRS is exploring options to correct these payments, if you have not received your full payment by the time you file your 2020 tax return, you may claim your payment using a Recovery Rebate Credit on your 2020 tax return using Form 1040 or Form 1040-SR.
- The credit is figured like the Economic Impact Payment, except that the credit eligibility and the credit amount are based on the 2020 tax year information, including income. Ask your CPA for help figuring out your rebate credit and how to request it.
- For people who received a partial Economic Impact Payment, they can take the Recovery Rebate Credit for any remaining amount they’re eligible for by completing line 30 of the 2020 Form 1040 or 1040-SR.
Got a 2021 rebate question we didn’t cover? Visit IRS.gov/eip or contact us at Teipen CPA Group.