Second Round of Stimulus Payments

The second round of stimulus checks for individuals, structured as tax rebates of $600 for single filers and $1,200 for couples filing jointly, plus $600 more for each child under age 17. Upper-incomers won’t get the payments. They phase out for couples with AGIs above $150,000, $112,500 for household heads and $75,000 for singles. People with direct deposit should have received the money or will get it soon. Paper checks or prepaid debit cards should be in mailboxes by the end of Jan. By law, IRS has only until Jan. 15 to send out this second round of payments.

Technically, the money is an advance payment of a special 2020 tax credit. The recovery rebate credit. On your 2020 return, you’ll reconcile this payment, along with the check you received in the first round, with the rebate credit allowed. If the credit exceeds the amounts received, you can claim the balance on your 1040. If the payments you got are more than the credit, you won’t have to repay IRS. If you haven’t received a check and you are entitled to one, you can claim the credit when you file your 2020 return. Note that stimulus payments are not taxable.