You may have noticed an extra $600 or more in your bank account recently. That’s because Congress passed several new measures into law, one of them being an additional advanced rebate, after the initial $1,200 payments that were sent out earlier in 2020. The bill provides a second round of payments to taxpayers of $600 per individual ($1,200 for married couples filing a joint return) plus $600 per qualifying child in 2020. This payment will be reduced as an individual’s income exceeds $75,000 for the 2019 tax year, reducing to zero when the income exceeds $99,000. For married, joint filers, this increases to $150,000 and $$198,000, respectively. For head of household, the numbers are $112,500 and $146,500.
The IRS has updated its rebate check tool, so you can check where yours may be here: https://www.irs.gov/coronavirus/get-my-payment
The initial $1,200 rebates will need to be reconciled on your 2020 tax return. You should have received, or will soon receive, a letter form the IRS stating what was sent to you; use this information, or give it to your tax preparer to report on your 2020 return. If you were sent too little, you will receive the difference with your return. For example, if you added a child in 2020 (i.e. birth or adoption), you are eligible for a little more than you may have received. If you were sent too much, you will not be required to pay it back.
Let us know if you have any questions!
-Heritage Accounting and Tax Services