January 6, 2021

A second round of stimulus checks are starting to be issued out by the IRS and the Treasury Department to individuals as of last week.

Taxpayers should be aware that the distribution of their payment could potentially take several days to post to individual accounts. Those who opted for direct deposit on their tax return will likely be able to view the payment as pending or as a provisional payment in their account before the scheduled payment date of January 4, 2021, which is the official date the funds will be made available.

Paper checks have already began being distributed to taxpayers and will continue to be mailed out through all of January. A handful of individuals can also expect to be mailed debit cards in January. The IRS strongly recommends people check their mail carefully and to be aware that sending out the checks will take the IRS more time to process compared to those who chose direct deposit as their method for their impact payment.

No action is required on the taxpayer’s end and those who are eligible for the second stimulus check will receive the payment automatically and should not contact their financial institutions or the IRS with payment timing questions.

Eligibility

U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on another person’s income tax return, are eligible for this second payment. Qualifying individuals can receive up to $600 or $1,200 for married couples and up to $600 for each qualifying child.

Individuals who have an adjusted gross income for 2019 up to $75,000 ($150,000 for married couples filing joint returns) will qualify for the full amount of the second stimulus payment. Filers who earn income above these amounts will receive a reduced amount.

Check the status of a payment

Taxpayers now have the ability to check the status of both their first and second payments by using the Get My Payment tool on the IRS website.

Payment not received or is the incorrect amount? Taxpayers can now claim this on their 2020 tax return

Payments will be made to those who have provided valid routing and account information on file. If a payment was sent to an account that is no longer valid, the financial institution that received the payment must return it to the IRS. If you have yet to receive your full payment by the time you file your 2020 tax return, you may claim the Recovery Rebate Credit on your tax return.

Updating bank account or mailing information

Eligible taxpayers should be aware that the IRS does not have the ability to change an individual’s payment information such as a bank account or new mailing address. Eligible taxpayers who do not get a payment or it is less than expected may be able to claim it on their 2020 tax return as a Recovery Rebate Credit.

Optima Tax Relief provides assistance to individuals struggling with unmanageable IRS tax burdens. To assess your tax situation and determine if you qualify for tax relief, contact us for a free consultation.