Personal Finance

Second Round of Stimulus Payments Now Being Sent Out

More than eight months after the first round of stimulus checks started being sent to many Americans as part of the CARES Act, more payments are now on their way. In a press release, the Internal Revenue Service and Treasury Department announced that directly deposited funds would begin arriving as early as last night and would continue throughout the week. Additionally, paper checks will begin to be mailed starting today.

This time around, the payments are up to $600 per adult as opposed to $1,200 last time around. However, parents will also receive up to $600 per qualifying child in this round, whereas this was limited to $500 last time. Individuals making less than $75,000 per year or married couples making less than $150,000 in adjusted gross income for 2019 will receive the full payments. Meanwhile, those making between $75,000 and $99,000 (up to $198,000 for married couples filing jointly) will receive reduced payments depending on their income.

If you previously received your stimulus payment via direct deposit, this latest payment should arrive in the same bank account as before. Soon taxpayers will be able to track the status of their funds using the Get My Payment tool on the IRS website, although the agency advises that the service is offline temporarily. Also of note is that, for those who received prepaid debit cards in the mail during the last round of stimulus, these cards will not be reloaded. Instead, a paper check or another card will be mailed.

In a statement regarding the latest round of payments, IRS Commissioner Chuck Rettig said, “Throughout this challenging year, the IRS has worked around the clock to provide Economic Impact Payments and critical taxpayer services to the American people. We are working swiftly to distribute this second round of payments as quickly as possible.” Rettig added, “This work continues throughout the holidays and into the new year as we prepare for the upcoming filing season. We urge everyone to visit IRS.gov in the coming days for the latest information on these payments and for important information and assistance with filing their 2021 taxes.”

There is still a small chance that the current $600 payments could be increased to $2,000 after the House of Representatives passed a bill to do just that. Additionally, President Trump has called for Americans to receive the higher stimulus payments. However, as CNBC reports, Senate Majority Leader Mitch McConnell has blocked a vote on that standalone bill and has instead introduced a new bill that includes $2,000 checks, the repeal of Section 230 of the Communications Decency Act, and the creation of a voter fraud commission. That bill is not expected to be tenable.

Even as there continues to be debate on Capitol Hill about further payments, the good news is that at least some relief is on the way for many Americans. If you’re expecting a direct deposit, be sure to keep an eye on your account or check the Get My Payment tool once it’s back online.

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