It took nearly 8 months of wrangling, but a new bill was finally signed into law that gives much needed economic assistance to millions of Americans. That’s right, the second round of stimulus checks – officially known as Economic Impact Payments – are on the way as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.
In this article, we are going to talk about how the IRS and the Department of Treasury are starting to deliver this economic relief and answer some of your questions about this round of economic stimulus. If, after reading this article, you would like to discuss your own tax situation, we invite you to call the IRS resolution attorney in Sarasota, Florida at the Law Office of Mary E. King, P.L.
The Law Office of Mary E. King, P.L. can make sure that your tax issues are resolved efficiently and at the lowest cost to you. Please fill out our online contact form, or call us at 941-906-7585 today.
Finally, Relief is On the Way – As Early as December 30th
Even though you may have read about more political battles with regard to a $2,000 one-time payment, the economic relief that has been enacted into law is a payment of $600 for single Americans, and $1,200 for married couples who file a joint tax return. Also, for those who have qualifying children (dependent children under 17), you will receive $600 for each qualifying child.
As noted, the Treasury Department and the Internal Revenue Service (IRS) have already begun delivering this second round of coronavirus relief. Many may have already received a direct deposit if they have an electronic direct deposit with the IRS. Paper checks were mailed beginning December 30, 2020.
As with the first round of payments, you do not need to do anything to receive the second round of payments. In short, the payments are automatic, so you do not need to call your bank or the IRS about the timing of the payment.
Let us, however, go through some frequently asked questions, so you have a sense of how the process is being handled.
1. Am I Eligible for the Second Round of Stimulus Payments?
In general, if you are a U.S. citizen or resident alien who cannot be claimed as a dependent on a tax return, then you are eligible for the stimulus payment. However, there is an income cap for those who receive the payment. Specifically, the payments will only go to those who earned an income that was $75,000 or less (or $150,000 or less for married couples) during the 2019 tax year. The amount of stimulus payment will decrease for people who made more than $75,000, and no payments are available to those who made more than $100,000 in 2019.
2. How Can I Find Out If I Will be Receiving a Check?
The IRS provides a tool – called the Get My Payment tool – which can be found at www.IRS.gov. The tool should be available in early January to provide information to taxpayers on the status of the stimulus payment.
3. What If I Changed Bank Accounts Since the Last Stimulus Payment?
The IRS can only use the information that it has about you. So, if you changed bank accounts, then a direct deposit may not make it to you. However, if you received the first round of stimulus money, and somehow you did not receive the second because of a change of banks, then you can claim that money as a credit on your 2020 tax return.
For those who do not currently have direct deposit information stored with the IRS, then you will receive a paper check or debit card in the mail.
4. I Receive Social Security, Railroad Retiree Income, or Veterans’ Benefits, Will I Receive a Payment?
Yes. If you receive social security, railroad retiree benefits, or veterans’ benefits, then the payment should be automatic. Earlier in the year, the IRS worked in connection with the relevant agencies to ensure that the IRS had the necessary information to send out the second round of payments in the same manner as you normally receive your benefits. If you are eligible but did not receive a payment, then you do have the option of filing a 2020 tax return and claiming credit for the stimulus money.
5. Will I Receive a Tax Document about the Second Stimulus Check?
Yes. The IRS will send you a notice that documents the second stimulus payment you received. You should keep that with your tax records.
If You Have Additional Questions, Consult with Mary E. King, IRS Resolution Attorney in Sarasota, Florida
Having an IRS resolution attorney in Sarasota, Florida at your side to advise you on this second round of stimulus money, and to give you options for your tax returns this year is worth its weight in gold.
Consider reaching out to the Law Offices of Mary E. King for help. Tax matters can be complicated, and thus, it is always helpful to have someone in your corner who understands the tax law and deals with the IRS on a regular basis. Indeed, beyond just the stimulus payment from the IRS, there could be other issues with which a seasoned tax attorney can help.
So, when it comes to dealing with tax relief and tax litigation, you need to talk to a Sarasota, Florida tax planning attorney who can help. Mary E. King has spent her career concentrating in tax law and can help you with tax scams in Florida and elsewhere. Attorney King has a wealth of information about what types of options would make the most sense for you and your business.
That helps explain why she’s received an A+ rating from the Florida Better Business Bureau. If you have a tax-related issue – no matter how small or how large – setting up an initial consultation with Mary E. King, tax lawyer of Florida, is the first step you should take towards relief.
The Law Office of Mary King P.L. offers complete IRS problem-solving services including all areas from tax debt settlement to planning the most efficient tax strategy for individuals and businesses. Call us today to schedule an initial consultation. With years of experience as a tax lawyer in Sarasota for many clients, Attorney Mary E. King can make sure that your tax issues are resolved in your favor. Fill out our online contact form, or call us at 941-906-7585. Remember, at the Law Office of Mary E. King, we are focused on solving your tax issues for good.