I hope you have managed to stay safe and well! We focus on resolving tax issues in Prince William County and throughout the lower Northern Virginia area.

Today, the Internal Revenue Service and the Treasury Department will begin delivering a second round of Economic Impact Payments (AKA Stimulus Checks) to millions of Americans who received the first round of payments earlier this year.

The initial direct deposit payments may begin arriving as early as tonight for some and will continue into next week. Paper checks will begin to be mailed tomorrow, Wednesday, Dec. 30.
There is no action required by eligible individuals to receive this second payment. The IRS reminds taxpayers that the payments are automatic, and there is no need to contact your financial institutions or the IRS, regarding the timing of payment.

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. The IRS urges taxpayers who didn’t receive a payment this year to review the eligibility criteria when they file their 2020 taxes; many people, including recent college graduates, may be eligible to claim it.

Authorized by the newly enacted COVID-relief legislation, the second round of payments, or “EIP 2,” is 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.

So, as long as you meet the eligibility requirement, even if you won’t receive an automatic payment now, you can still claim the equivalent Recovery Rebate Credit when you file your 2020 federal income tax return.

In addition, taxpayers will receive an IRS notice, or letter, after they receive a payment telling them the amount of their payment. According to the IRS, these notices should be kept for their tax records. If you feel you would like help navigating anything to pertaining to the new COVID-relief legislation, please feel free to contact us. We’d be more than happy to help. https://brtaxaccountant.com/