The New Year brings a new round of stimulus payments! But, the 2021 stimulus checks are a little different than the 2020 checks. The Internal Revenue Service and the Treasury Department started their work on December 29th to send over 100 million payments by January 15th. In fact, you may have already seen a direct deposit payment to your bank account or a physical check or Economic Impact Payment card in the mail.
The size of this payment will be a little different. The payments are still based on your 2019 tax returns. You can receive the full $600 per head of household and $600 for each child 16 and under if your income is
- $75,000 or less for single filers, or
- $150,000 or less for joint filers.
If your income is higher than the limits listed above, your payment will be reduced. If you would like to estimate your payment, Forbes has created a stimulus check calculator that you can use. And, if you would like to track your 2021 Stimulus Payment the IRS has created a Get My Payment page to track your payment.
Since there is such a short time period for the IRS/Treasury Department to get these payments out, there is a chance that not all the payments will be sent by the January 15th deadline. If you do not receive your Stimulus Payment or feel that your payment has been incorrectly assessed, you will be able to claim the amount as a Recovery Rebate Credit on your 2021 federal taxes. The Recovery Rebate Credit is authorized by the CARES Act to allow any authorized individual who did not receive the full amount of their recovery rebate as an advanced payment (AKA Economic Impact Payment or Stimulus check) can claim the Recovery Credit on 2020 Form 1040 or 1040-SR.
For more information about these new Stimulus Checks, check out the IRS’s webpage on Economic Impact Payments.