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Stimulus Payments Part 2
As you may have heard, President Trump signed the “COVID Relief Part 4 ( Formally known as Continuing Appropriations Act of 2021)” into law recently. Payment amount will be $600 per qualified recipient ($1200 per Married Couple) plus $600 per dependent child claimed on the tax return. As before, no payments are available for dependents over the age of 17 (e.g. college students).
Write down the stimulus payment amount received. It’s non taxable, but there will be a reconcile on the tax return. If “shorted” the “shortfall” will be included as a credit on the tax return.
Payments will come the same way as the first stimulus payment. If received as direct deposit, the second Stimulus payment will be direct deposited to same account. Payments are already being issued, so updating direct deposit accounts information may not be possible as the IRS “Get My (Stimulus) Payment” feature is offline (as of January 1, 2021). Some stimulus payments will be sent by debit card instead of check. Therefore if expecting an mailed payment watch both for the customary manila IRS envelope and a white envelope with a return address of “Merchant Services” . If your payment is sent by debit card it will be the white envelope.
Have a safe and wonderful New Year. . .