Tuesday, December 22, 2020



Congress has passed COVID relief legislation.  It is expected Trump will sign the bill into law today.
The package includes a second “Economic Impact Payment” (EIP) of $600 per person. 
An email alert sent to members of the National Association of Tax Professionals by the association explains -
The full credit amount is $600 per individual, $1,200 per couple and $600 for {dependent} children. It is available for individuals with AGI at or below $75,000 ($112,500 for heads of household), and couples with AGI at or below $150,000. If you have children, you will receive an additional $600 per child.
For those above this income level, your tax rebate amount will be reduced by $5 for each $100 your AGI exceeds the above thresholds.”
It is anticipated that the IRS will begin issuing the payments at the end of December through the first two weeks of January, based on data it already has in its system from the first round of checks.  If the Service has your direct deposit information, your payment will be directly deposited to your bank account.  If not, your payment will be mailed to you.
As with the first payment, this one is also not considered taxable income.  And, also like the first payment, it will be reconciled on your 2020 tax return.  If you did not receive the full amount to which you entitled you can claim it as a refundable credit on the return.  Excess payments not due to fraud do not have to be repaid.

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