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$600 Economic Impact Payments are Coming... NOW!

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$600 Payments from the IRS are coming.... NOW!

Press release from the IRS just hit the wire and some people will start seeing deposits as early as tonight. Full walkthrough in the video.

Transcript:

I just got this press release from the IRS because I’m on their mailing list as a tax preparer and it's surprisingly good. This came out just now saying the IRS the treasury department will begin delivering their second round of economic impact payments. That's the 600 per person off the coronavirus response and relief supplemental appropriations act of 2021 or as we call it in the biz corona bus.

It's going out to millions of Americans who received the first round of payments earlier this year. They're saying they are starting to go out right now and some people will see them as early as tonight which is Tuesday in as a pending deposit in their bank account for direct deposit and otherwise onwards.

Paper checks are gonna for those people who don't have direct deposits set up. So, if you didn't get direct deposit the first time you're probably not gonna get it the second time. Those checks are starting to be mailed out tomorrow but those will extend out into the end of January is what they are saying, just to recap it's 600 per adult and if you're single it’s 600, if you're married filing jointly it's going to be 1200 plus another 600 for each additional qualifying child and those are children 16 and under, that's what it says. You're authorized by the newly enacted coveted relief legislation the second round of payments or eip2 is generally 600 for singles and 1200 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. If you claim your elderly parent as a dependent on the tax return then that is not a qualifying dependent for this child payment.

Payments are automatic you don't have to do anything for anybody who follows the 2019 tax return. Anybody who receives social security retirement survivor or disability benefits railroad benefits as well as supplemental security income and veterans affairs beneficiaries who did not file a tax return payments are also automatic for anyone who successfully registered for the first payment online at irs.gov using the agency's non-filer tools by November 21st, 2020 or who submitted a simplified tax return that has been processed by the IRS.

The only people who aren't eligible for this are people who have no income or and didn't file returns and don't exist as far as the IRS is concerned. There is a change here if you are resident aliens and things are married to one.

Generally, U.S citizens and resident aliens who are not eligible to be claimed as a dependent on someone else's income tax return are eligible for the second payment. Eligible individuals will automatically receive an Economic Impact Payment of up to 600 for individuals 1200 for married couples 600 for a qualifying child. If you have adjusted gross income for 2019 up to 75 000 for individuals and up to 150 000 for married couples filing short returns and surviving spouses you will receive the full amount of the second payment for files with income above those amounts the payment amount is reduced.

You can go to get my payment tool. It's in English and Spanish on irs.gov.

Let's take a quick look at that Coronavirus Tax Relief and check your payment status right there and then you can enter your information. Click get my payment. How will the IRS know where to send my payment what if I change bank accounts? the IRS will use the data already in our systems to send the new payments. Taxpayers with direct deposit information on file will receive a payment that way. For those without current direct deposit information on file, they receive the payment as a check or debit card in the mail.

This is the same as when you file a tax return, if the IRS attempts to direct deposit into a closed account or you wrote the number wrong it bounces back to the IRS and they mail a check same process here. For those who eligible but who don't receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021 and that is true but we've seen on the new schedule or on the new 1040 there is a line in the credits section for the academic impact payment. Then, we have people receive a paycheck or debit card most will receive. What most would be a direct deposit and the rest of those will be paper checks and occasionally you'll get a debit card.

This is what is interesting, more people are eligible now for payment than before under the earlier cares act joint returns of couples where only one member of the couple had a social security number or generally ineligible for payment. That means if you were a married couple and one spouse had like an itin or didn't have the social security number yet those people were ineligible unless they're a member of the military but this month's new law changes and expands that provision and more people are now eligible. In this situation, these families will now be eligible to receive payments for the taxpayers and qualifying children of the family who have work-eligible social security numbers. People in this group who don't receive an economic impact payment can claim under the 2020 taxes.

The way this reads is that if let's say your married spouse does not have a social security number the but you have two kids who do in that case you would have one adult and two qualifying children so you'd get an 1800 payment.

Let's say I didn't file a tax return and didn't register. Am I eligible? yes if you meet the eligible eligibility cred requirement but you won't receive an automatic payment, you'll have to claim it on your tax returns.

Will I receive anything from my tax records showing I received a second economic impact payment? yes, people will receive an IRS notice or letter after they receive payment telling them the amount of their payment they should keep this for their tax records and you can always go to you know irs.gov slash get my payment or slash eip for more information.

This just came out I just wanted to make sure everybody was aware and to look out for those deposits and that's the 600 at work now we do know that 2000 is being held up in the senate right now.

We'll see what comes with that but that'll be later.

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