The American Rescue Plan Act’s approval has led to a new round of Economic Impact Payments (EIP). According to the IRS, some recipients may have already received them over the weekend and plenty more will receive theirs this week even though the official date is March 17, 2021. Taxpayers will not have to take action and should expect a direct deposit to their account. Here are the highlights for the third Economic Impact Payment (EIP3).
According to the IRS, a majority of the payments will be direct deposit, but there is a possibility it will come as a check or debit card. The amount for EIP3 is being automatically calculated by the IRS. This amount will be based on the taxpayer’s latest tax return of either 2020 or 2019. EIP3 will be larger for most people, especially families, because the third payment will not be restricted to children under 17 as dependents. This time families will get a payment based on all their qualifying dependents they claim on their return.
If you want information on how EIP3 may affect your 2020 taxes, please contact Lakeesha Browne, CPA. This information was brought to you by the IRS.
“IRS Begins Delivering Third Round of Economic Impact Payments to Americans.” IRS, 12 Mar. 2021, https://www.irs.gov/newsroom/irs-begins-delivering-third-round-of-economic-impact-payments-to-americans Accessed 14 Mar. 2021.