Important Information Related to Stimulus Payments
By: Luci Roseman, CPA, Cover & Rossiter
In Late December congress passed a $900B pandemic relief package that established a $600 direct stimulus payment to most Americans under certain income limits.
Generally, no action is necessary to get the second stimulus payment; however, if you do not receive it, it can be requested when you file your 2020 return. Be sure to let your tax advisor know if you received the first and second stimulus payments and the amount of each.
Here are a few common questions and answers to ensure you receive your stimulus payment:
How can I check the status of my payment?
The IRS updated the Get My Payment tool with information related to the second round of stimulus payments. Due to high traffic volumes, some people visiting the site may get a “please wait” or error message. The IRS encourages people to check back later or the following day if an error message is received.
What does the status shown on the Get My Payment tool mean?
If you check the Get My Payment tool and are unsure what your status means, the following may help:
- If it reflects a direct deposit date and partial account information, then your payment is deposited into that account.
- If it reflects a date your payment was mailed, it may take up to 3 – 4 weeks for you to receive the payment. Watch your mail carefully for a check or debit card.
- If it shows “Payment Status #2 – Not Available,” then you will not receive a second stimulus payment and instead you need to claim the Recovery Rebate Credit on your 2020 Tax Return.
What if I closed the bank account that was listed on my 2019 tax return?
By law the financial institution must return the payment to the IRS, when deposited to an account that is no longer active. The IRS will not re-issue the payment if this happens. Instead, if you qualify for the second stimulus payment and did not receive it, the IRS recommends filing your 2020 tax return electronically and claiming the Recovery Rebate Credit on it to get the payment and any refund as quickly as possible.
Where can I get more information?
The IRS has stated that IRS phone assistors do not have additional information beyond what’s available on IRS.gov and has asked that people not call with questions.
You may be able to find answers to your questions through the following websites:
- For more information about Stimulus Payments and the 2020 Recovery Rebate Credit, visit IRS.gov/eip.
- To check the status of their payment, visit IRS.gov/getmypayment.
- To check answers to FAQs, visit https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions and https://www.irs.gov/coronavirus/second-eip-faqs
- For an overview check this news release issued by the IRS on 12/29/2020 https://www.irs.gov/newsroom/treasury-and-irs-begin-delivering-second-round-of-economic-impact-payments-to-millions-of-americans
- For other COVID-19 related tax relief, visit IRS.gov/coronavirus.
Luci M. Roseman is a Manager in the Tax department of Cover & Rossiter. Since joining the firm in 2011, she has used her keen attention to detail and problem solving ability to help clients navigate the ever-changing tax laws.