Personal Tax

How is the second round of stimulus payment calculated?

The second round of stimulus is calculated based on the information reported on your 2019 tax return.
Currently, the second stimulus payout is as follows for those eligible:
• $600 per individual
• $1,200 per couple
• $600 per child under the age of 17

Income qualifications for receiving the second payment are similar to the first round. You will receive the full amount if you are:
• An individual earning less than $75,000 per year
• A couple earning less than $150,000 per year as a couple
• If your Adjusted Gross Income (AGI) is more than those amounts, your stimulus payment will be reduced by $5 for each $100 over the limit.

It completely phases out if:
• You earn more than $99,000 as a single taxpayer
• You earn more than $136,500 as Head of Household
• You earn more than $198,000 as joint filers with no kids

Is the stimulus payment taxable?
No, both first and second stimulus payments are not taxable.

What’s the difference between the stimulus payment, Economic Impact Payment, and the Recovery Rebate?
They are all the same. It is an advance payment of the tax credit associated with your 2020 tax return.
How do I check the status of my Stimulus Payment?
You can use the IRS’ Get My Payment tool to check the status of your stimulus payment.

What if I don’t have a bank account for direct deposit?
The IRS is issuing checks and debit cards as well for the ones that don’t have direct deposit information on the latest tax return.

Can I change my direct deposit information?
No, you will not be able to change the direct deposit information at this moment. If the account the IRS has on file is closed, you will need to claim the Recovery Rebate Credit on your 2020 tax return. Khob Tax can assist you with this claim.

How can Khob Tax help me get my remaining EIP payment?
If you haven’t received your EIP payment or have received less payment than the qualified amount, Khob Tax can help you get it while filing your 2020 tax return. You’ll need to let us know the stimulus amount you received and we will determine whether you received the right amount. If you’re owed more, the extra funds will be added as a credit to your tax refund.
If you have not received your second stimulus payment by the time you file, Khob Tax will determine the amount you should receive and appropriately report it on your tax return.

My spouse doesn’t have an SSN, do we qualify to receive a payment?
This new bill expanded the eligibility for stimulus payments to include mixed-status households. So, the stimulus payment is available to people who have an SSN but are married to someone who does not have SSN. This expansion is retroactive as well, meaning some individuals who were ineligible for the first round of stimulus payments may now qualify to receive that money.
If you are now qualified to receive a payment from the first round, Khob Tax will help you accurately calculate and claim the recovery rebate as a credit on your 2020 tax return.

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