Economic News
IRS Opens “Get My Payment” Tool for 2021 Economic Impact Checks
With another round of Economic Impact Payments now going out to many Americans, the Internal Revenue Service (IRS) has updated its Get My Payment tool. According to the IRS, payments authorized by the American Rescue Plan Act began reaching individuals as early as March 12th, with an official payment date set for March 17th. This tool will provide individuals with the expected payment date, inform them that they’re eligible but that a date is not yet available, or let them know that more information is needed in order for them to receive their payments. The agency does warn that some may also see a “Payment Status Not Available” message, meaning that either a payment has not yet been processed or that an individual is not eligible for this round of stimulus. As with previous payments, those sent via direct deposit will go out first followed by the mailing of paper checks.
The third round of direct stimulus payments to individuals is different from earlier rounds in a few key ways. First, this round calls for payments of $1,400 per adult as opposed to the $1,200 and $600 payments of rounds one and two respectively. Additionally, this time families will also get $1,400 per dependent. On that note, while previous installments were limited to children under 17, the latest payments will be based on the number of eligible dependents claimed on a filer’s tax returns. As a result of these rules, a family of four consisting of a married couple and two dependents will receive $5,600.
Another big difference is that the income phase-out limits for this round of payments are lower than with previous payments. For 2021 payments, individuals making $75,000 a year or less as well as married couples making $150,000 per year or less will receive the full benefit, while those making between $75,000 to $80,000 ($150,000 to $160,000 for married couples) will see reduced payments. Those making more than these caps will not be eligible for payments. Although 2020’s payments also started phasing out for individuals making more than $75,000 a year, only those making $99,000 or more were entirely ineligible for payments.
As for eligible individuals still waiting on payment from either round one or round two of stimulus, those statuses will no longer be available using the Get My Payment tool. Instead, the IRS advises that missing payments may be eligible to claim the 2020 Recovery Rebate Credit. However, to do so, even those who aren’t typically required to file returns will need to file one in order to receive their credit.
Notably, the timing of this round of payments coincides with many Americans filing their 2020 tax returns. IRS Commissioner Chuck Rettig addressed this in a statement, saying, “Even though the tax season is in full swing, IRS employees again worked around the clock to quickly deliver help to millions of Americans struggling to cope with this historic pandemic. The payments will be delivered automatically to taxpayers even as the IRS continues delivering regular tax refunds. We urge people to visit IRS.gov for the latest details on the stimulus payments, other new tax law provisions and tax season updates.”
With this being the third round of payments, hopefully the IRS now has more taxpayers’ direct deposit information, allowing for speedier delivery. That said, those who have changed bank accounts since their last payment may want to visit the IRS website and update their information if possible. On that note, for more details and instructions regarding stimulus payments, visit IRS.gov.
