New Round of Stimulus Payments Authorized

The Consolidated Appropriations Act, 2021, which was signed into law on December 27, 2020, directs the Department of the Treasury to deliver additional Economic Impact Payments (known more popularly as “stimulus payments”) to U.S. citizens and residents. These payments are generally $600 for singles and $1,200 for married couples filing a joint return. In addition, those with qualifying children will also receive $600 for each qualifying child. Dependents who are 17 and older are not eligible for the child payment.

No action is required on the part of recipients to recieve these payments. The payments are automatic, and may even be delivered via direct deposit before the official payment date of January 4, 2021.

As with the first round of payments under the CARES Act, most recipients will receive these payments by direct deposit. For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way. Anyone who received the first round of payments earlier this year but doesn’t receive a payment via direct deposit will generally receive a check or, in some instances, a debit card.

Eligible individuals who did not receive an Economic Impact Payment this year – either the first or the second payment – will be able to claim it when they file their 2020 taxes in 2021. If you did not receive a payment this year, please contact our office to review the eligibility criteria and see if you are able to claim this on your tax return.

This article carries no official authority, and its contents should not be acted upon without professional advice. For more information about this topic, please contact our office.