To provide financial relief during the pandemic, the federal government is offering Economic Impact Payments to U.S. residents. The information below provides a broad overview of the guidelines but your best source for the most accurate, up-to-date information regarding this second round of EIPs will continue to be www.IRS.gov/eip.
Important: the IRS will not contact you for your banking or personal information for your Economic Impact Payment. If someone does, it is a scam. Per the IRS, payments have begun as of December 30, 2020. For your security, rely only on www.IRS.gov/eip for EIP information.
What You Need to Know about EIPs
$600* for individuals
Eligible individuals with adjusted gross income up to $75,000 will automatically receive the full $600 payment. For filers with income above this amount, the payment amount is reduced.
$1,200* for married couples
Eligible married couples filing a joint return with adjusted gross income up to $150,000 will automatically receive the full $1,200 payment. For filers with income above this amount, the payment amount is reduced.
$600* per child
Eligible parents also get $600 for each eligible child under 17. Dependents who are 17 and older are not eligible for the payments.
Payments are automatic for eligible taxpayers
Payments are automatic for eligible taxpayers who filed a 2019 tax return, those who receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits as well as Supplemental Security Income (SSI) and Veterans Affairs beneficiaries who didn’t 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-Filers tool by November 21, 2020 or who submitted a simplified tax return that has been processed by the IRS.
The IRS will use the data already in their systems to send the new payments. Taxpayers with direct deposit information on file will receive the payment that way. For those without current direct deposit information on file, they will receive the payment as a check or debit card in the mail. For those eligible but who don’t receive the payment for any reason, it can be claimed by filing a 2020 tax return in 2021. Remember, the Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR
The initial direct deposit payments are currently being disbursed. Paper checks will begin to be mailed on Wednesday, December 30. Checking your account via online/mobile banking is one of the quickest and easiest ways to see if your EIP has been deposited into your account (Do not call your financial institution, they do not have this information).
Yes, if you meet the eligibility requirement. While 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. The quickest way to see if your EIP has been made is by checking your account via online/mobile banking. While we can tell you if an ACH deposit was made to your account, we don't have access to other EIP information.
The CARES Act codes EIP as a tax rebate, not a government benefit. Because tax rebates are subject to garnishment, so is your EIP. The financial industry has no control over this classification.