January 2021 Economic Impact Payments
Below is a link for information regarding this round of Economic Impact Payments:
https://www.irs.gov/coronavirus/economic-impact-payments. You may check here and enter information to get information about your personal payment from the US Treasury.
What is the timing of the payments?
The first batch of payments were initiated Tuesday evening, December 29 with a disbursement/effective date of Monday, January 4 (this means the funds will be available for you to use beginning January 4). This set will contain about 113 million payments.
Checks started printing to be mailed Wednesday, December 30, at a rate of approximately five to seven million per week and are expected to look the same as the previous round of EIPs in the spring. The checks will be dated January 6, 2021, but Treasury has confirmed that it will not return any checks deposited or cashed before that day. Prepaid cards totaling about three million per week will start to be mailed on Monday, January 4.
As we receive more updates about the payment distribution plan, we will update these FAQs.
Who qualifies for payments and how it is calculated?
For those who have not yet filed a return for 2018 or 2019, you will have until year-end 2020 to do so in order to claim a rebate payment.
The maximum payment for an individual is $600, which also applies to dependents. Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive a payment depending on the number of members in the household (i.e. a family of four could receive a payment of $2,400).
To be eligible for the full amount, tax filers must have an adjusted gross income of $75,000 or less for individuals, per 2019 tax returns. For filers with income above these amounts, they will receive a prorated amount until the cut-off income of $87,000, if they have no dependents. For couples, the full benefit will apply to those earning up to $150,000 and will taper off as their income approaches $174,000.
There are no exclusions for lower income individuals who are not subject to income tax. An individual who has been claimed as a dependent on the return of another taxpayer in the current tax year in not eligible for a payment.
What is the plan from the government for distributing these payments?
The United States Treasury plans to issue about 130 million checks to recipients through ACH payments – via direct deposit. The Treasury is going to distribute payments to the same accounts consumers received their spring payments.
Please note, you can find bank information on your checks from State Bank. Our routing number is 074908138. Your account number is to the right of the routing number and then the check number.
If you need assistance finding your account number, please call one of our full-service offices and a Customer Service Representative will be happy to assist you.
How will people, such as seniors, who may not usually file income tax returns receive their payment?
Current Social Security recipients will receive EIPs based on direct deposit information held by the Social Security Administration.
Is the payment taxable?
The payment is not taxable because it is structured as an advanced, refundable credit against the taxpayer’s 2020 tax liability.
The final amount of payment will be based on 2020 income and settled on the 2020 tax return. A taxpayer who ultimately qualifies for a larger payment (i.e., an individual whose income dropped from 2019 to 2020 or had a child in 2020) will be compensated with a larger refund or smaller tax liability in 2021. However, a taxpayer who ultimately qualifies for less money will not have to pay back the overpayment.
What do the IRS, State Bank and the US Treasury all have in common?
None of them will call or email you to get your bank account information in order to mail you a check or direct deposit your funds. If you receive an email or text requesting any information in order to “register” for your payment, that is a big red flag. Do not give personal information in response to such communication.