Stimulus Check Update
COVID-19 pandemic relief money continues to be disbursed to American households in the form of stimulus checks, formally known as Economic Impact Payments (EIPs).
On May 26, 2021, the Internal Revenue Service (IRS), the U.S. Department of the Treasury, and the Bureau of the Fiscal Service updated the figures on disbursements of Economic Impact Payments under the American Rescue Plan.
Updated Figures
Since these payments began rolling out March 12, nearly 167 million payments have been made totaling roughly $391 billion. During the last two weeks of payments, more than 1.8 million payments with a value of more than $3.5 billion have been sent. That includes over 900,000 payments valued at $1.9 billion that went to eligible individuals for whom the IRS did not previously have information to issue stimulus checks but who recently filed a tax return.
Also, in the last two weeks, there were more than 900,000 supplemental payments to people who received earlier stimulus payments based on their 2019 tax returns but are eligible for a new or larger payment based on their 2020 tax returns. The IRS has made nearly 7 million of these supplemental payments in 2021.
Reminder to File a Tax Return
The IRS will continue to make Economic Impact Payments weekly. While most payments are automatic, the IRS urges those who don’t normally file a tax return to file a 2020 return to get all the stimulus benefits to which they are entitled. This could include tax credits like the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit.
2020 tax returns will also help the IRS determine whether someone is eligible for an advance payment of the 2021 Child Tax Credit, which begins rolling out this summer.
For federal benefit recipients who don’t normally file a return, the IRS recommends filing a 2020 return to provide information the IRS may need to send payments to a qualifying dependent. For those who don’t normally file a return and don’t receive federal benefits, filing a 2020 return is also important because they may qualify for an Economic Impact Payment even if they didn’t qualify for money in the first two rounds of federal stimulus.
Income Levels
This latest and third round of direct stimulus payments to eligible Americans falls under different income guidelines than the first two rounds. Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income (AGI) or $150,000 for married filing jointly. Payments end at $80,000 for individuals and $160,000 for married filing jointly.
Check the Status of Your Check
If you are still waiting for stimulus money and want to check its progress, use the Get My Payment tool on irs.gov: https://www.irs.gov/coronavirus/get-my-payment
Calling the IRS will not be helpful, since their phone assistors don’t have any information beyond what’s available on their website.
For additional help, continue to check herbein.com for updates or reach out to your Herbein advisor.
