The American people received financial aid in 2020 from the U.S. government called Economic Impact Payments (EIP). EIPs are a means to survive the economic crisis caused by the COVID-19 pandemic. Sadly, the pandemic continues and has yet to show signs of an end. Thus, the U.S. government is providing a second wave of EIPs to continue helping Americans stay afloat. Here’s the latest news on the second EIPs.
While the EIP does not require action from taxpayers, there is no set means of acquiring this automatic payment. According to the IRS, there are two ways that taxpayers can expect to receive their EIP: direct deposit or mail. Direct deposits are the fastest way to receive the EIP, but the IRS has had issues with the Get My Payment tool. They are working to fix this. EIPs through the mail will either be a paper check or as an Economic Payment Card (EIC) that functions similarly to a debit card. If taxpayers did not receive a payment or the full amount of payment, then they can claim Recovery Rebate Credit when they file their 2020 tax return. Taxpayers should expect to receive their EIP in one form or another this January.
Eager to stay up to date on EIP news? If you want more information about the EIP, please contact Lakeesha Browne, CPA. This information was brought to you by the IRS.
“IRS Statement- Update on Economic Impact Payments.” IRS, 11 Jan. 2021, https://www.irs.gov/newsroom/irs-statement-update-on-economic-impact-payments
Accessed 25 Jan. 2021.