The U.S. government sends checks known as stimulus checks to the taxpayers to stimulate spending in the economy. This exercise is done to revamp the consumption and amp up the country’s revenues, which will propel economic growth.
In the spring of 2020, the government has sent stimulus checks, each worth $1,200 to the taxpayers who were economically affected by COVID. On December 27th, 2020, Congress passed a bill supporting the payment of stimulus checks worth $600 per person for taxpayers economically affected by the COVID.
Difference between the first round and second round of stimulus checks
Through this bill for the second round of stimulus checks, lawmakers have attempted to fix a few problems related to restricted payments in the first bill. Here are a few examples of the changes that you will see in the second round of stimulus checks:
- “Mixed-status” immigrant families will also be included in the distribution of second stimulus checks
- Families including American citizens married to immigrants without green cards will also be counted in
- In the first round, eligible children under 17 years of age only received $500. As part of this bill, they will receive a total of $600
Who is eligible for the second round of stimulus checks?
Generally, the eligible people would include U.S. citizens and resident aliens, who fulfill the income requirements as mentioned in the bill. The said income would be AGI ( Adjusted Gross Income) for the year 2019.
- Individuals with earnings under $75,000 and heads of households with earnings less than $112,500 would qualify for a $600 second-round stimulus payment
- Further, married and filing jointly taxpayers or surviving spouses who earn less than $150,000 would be eligible for the $1,200 payment
- Even if you earn more than the income requirements, you may receive a decreased stimulus payments. However, these payments entirely phase out at AGI $87,000 and $174,000 respectively for individuals and couples filing jointly
Qualifying Children
An additional payment of $600 per child would be given to taxpayers with qualifying children. This policy excludes the children who are listed as dependents — aged 17 years or older.
Adult Dependents
In contrast to the first stimulus payment earlier last year, this bill doesn’t include adults who are listed as dependents on another taxpayer’s income tax returns. For instance: adult dependents could be a college student claimed as dependent on his/her parents’ tax return.
From when are the second stimulus payments available?
The payment of stimulus checks is already being made to the bank accounts of the eligible taxpayers. The official date for the commencement of these payments was January 4th, 2021.
How will the payments be made?
For people whose direct deposit information is readily available on their file, IRS will make payments through ACH transfer to that listed account. In case your direct deposit information is unavailable on our file, the payment — in the form of a check or debit card— will be mailed to you. Don’t expect the mode of payment to be the same as your first stimulus check. For instance, if you have received your first stimulus payment in the form of a paper check, you might receive it as a debit card this time.
How can you track the status of your stimulus check?
You can check your stimulus check’s status through the Get My Payment tool provided by the IRS. This tool is available in English and Spanish languages.
If you are eligible for the second stimulus payment and expecting it, ensure you keep a close eye on your bank account and even your mailbox ( especially if it is in common areas or unsecured).