January 28, 2021

What to Know About the Second Round of Economic Impact Payments

The ins and outs of the second round of stimulus checks

How much do you get?

The payments are up to $600 for each qualified individual and $1,200 for qualified couples. If you have children, you may be eligible for an additional $600 payment for each dependent under the age of 17. Your eligibility will be based on your 2019 tax returns. If you have an adjusted gross income (AGI) of less than $75,000, you qualify for the maximum $600.

How to receive your payment

Depending on how you filed on your 2019 tax return, your payment should be sent accordingly. The IRS will use the information that was kept on file from the first stimulus check.

You could receive your payment through mail or direct deposit. If you provided your bank account information on your tax return, you should receive the payment through direct deposit. If not, a check will be delivered to the permanent address the IRS has on file.

Track your stimulus checks

The IRS has a convenient online tool called “Get My Payment.” This allows you to check the status of your most recent stimulus check, confirm the payment type, and get a projected delivery date.

Stimulus checks are not taxable income

The IRS does not consider the stimulus checks to be income, but rather an advanced tax credit. In fact, if you did not receive the checks that you were owed this year, you can claim them as credit on your 2020 federal income taxes when you file in 2021.

Your second stimulus check cannot be held for debt

This is something different from the first stimulus check. Your second check is yours to save or spend however you would like. For the first check, there were certain situations where the state, federal government, or even debt collectors could claim all or part of your check to cover debts like child support. The second round of checks are protected from these situations.

Beware of stimulus check scams

This second round of payments is another opportunity for scammers to get information and money out of you. A tip to keep in mind: the IRS will not contact you via text, email, or ask you to verify information on the phone. If you receive emails or texts promising quicker payments or a link to receive your payment, it is most likely a scam.

Stimulus payments can be confusing. If you have more questions on what you can do with your payments, you can meet with a personal banker to learn about the different ways you can save or invest your money.