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Second Round of Stimulus Checks

December 30, 2020 by Jerrica Elgin
Copeland Buhl

The COVID-related Tax Relief Act of 2020 was signed by President Trump as part of the Consolidated Appropriations Act.  A second round of stimulus checks was included in this new law.

Taxpayers are eligible for a rebate payment up to $600 ($1,200 for joint filers) plus $600 for each qualifying child. The amount of the rebate payment will be reduced once adjusted gross income reaches a certain threshold for eligible individuals. The phase-out begins as follows:

  • $150,000 for joint filers,
  • $112,500 for head of household filers,
  • $75,000 for all other taxpayers.

The IRS will use the taxpayer’s 2019 tax return to determine the advance payment amount. The payment will be made via direct deposit to the account the taxpayer used for their 2019 federal refund.

Checks or direct deposits must be sent by January 15, 2021.  Otherwise, taxpayers will claim the rebate as a credit on their 2020 tax returns.

There is talk about increasing the checks to $2,000.  At the time of this article’s posting, the increase has not been approved by the Senate or signed into law.

Please contact your Copeland Buhl representative if you have questions regarding the stimulus rebate payments.