On Dec. 29, the IRS finally began sending the second round of Economic Impact Payments (also known as stimulus checks). 

The new Covid-relief legislation currently provides a maximum $600 payment for qualifying individuals, as opposed to the $1,200 payments received last spring. And while the House passed a measure to increase the $600 stimulus checks to $2,000 for qualifying individuals, it remains a long shot for the bigger payment to be approved by the Senate. 

In the meantime, the $600 payment, which was passed by Congress and signed into law by President Donald Trump, is being sent to qualifying Americans now. The IRS states that if Congress passes an increase to the Economic Impact Payments, the additional payment will be issued as quickly as possible to make up the difference.


Calculator: Find Out How Much Your Second Stimulus Payment Might Be


Who Is Eligible For A Stimulus Check?

U.S. citizens and resident aliens who meet income requirements and who cannot be claimed as a dependent on another person’s tax return are generally eligible. Income is based on your 2019 adjusted gross income (AGI). Individuals earning under $75,000 and heads of households under $112,500 typically qualify for the full $600 stimulus payment. Those married and filing jointly or surviving spouses earning under $150,000 usually qualify for a $1,200 payment.

If you exceed the income requirements, you may still receive a reduced stimulus payment, but the $600 payment phases out completely at $87,000 AGI for individuals and $174,000 AGI for couples filing jointly.

Qualifying Children

People with qualifying children will receive an additional $600 per child. However, children claimed as dependents who are 17 and older are not eligible for the child payment. 

Adult Dependents

Unlike the first stimulus payment, adults who are claimed as dependents on another person’s tax return (such as a college student) aren’t eligible for a second stimulus check. 

When Do Stimulus Payments Phase Out? 

The payments will be reduced at the same rate as the stimulus payments from the CARES Act. However, because the payments are lower, the income levels at which they phase out is lower than it was for the CARES Act.

For individuals: Your stimulus check is reduced by $5 for every $100 you earned above the $75,000 AGI threshold. Stimulus payments phase out completely for this group at $87,000 AGI. 

For married couples filing jointly: Your stimulus check is reduced by $5 for every $100 you earned above the $150,000 AGI threshold. Stimulus payments phase out completely for this group at $174,000 AGI. 

For heads of households: Your stimulus check is reduced by $5 for every $100 you earned above the $112,500 AGI threshold. Stimulus payments phase out completely for this group at $124,500. 

Changes from the CARES Act

Children Qualify for the Full Amount

Eligible dependent children will receive the full stimulus payment amount of $600 (up from $500 in the CARES Act). 

Increased Eligibility from the CARES Act

In many cases, couples filing a joint return where only one partner had a Social Security number were not eligible for the first Economic Impact Payment under the CARES Act. The new legislation extends benefits to eligible taxpayers and children who have a work-eligible Social Security number.  So eligible families with mixed immigration statuses can now receive both Economic Impact Payments.

If you did not receive the first stimulus payment because of exclusion in the CARES Act, you may be able to claim the Recovery Rebate Credit on your 2020 tax return. You should also receive the second stimulus payment automatically based on your 2019 return.

Does Receiving The First Stimulus Check Mean You Will Receive The Second Stimulus Check?

Not necessarily. If your taxable income increased from 2018 to 2019, you may not be eligible for the second stimulus payment. Also, because the stimulus payments phase out at lower income levels (because of the lower amount of the stimulus payment), fewer people will qualify for a stimulus check. 

For example, if you were an individual who earned $90,000 AGI in 2019, you qualified for a reduced stimulus payment in the first round. But for the second round of checks, the maximum AGI for an individual filer is $87,000—so you’d no longer qualify for any stimulus check. 

You Don’t Need To Claim Your Stimulus Check

The IRS stressed that there is no additional action required for eligible individuals—eligible taxpayers who filed in 2019 will receive automatic payments. Payments are also automatic for people who did not file 2019 taxes and received Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs benefits. 

There is further good news for those low wage earners who do not typically file a federal tax return. If you successfully registered with the IRS Non-Filers tool by Nov. 21, 2020, and you are eligible, your payment should be sent to you. 

Read more: Do I Have To Claim My Stimulus Check? And Other Stimulus Check FAQs

How Will My Payment Arrive?

If the IRS has direct deposit information on file for you, your payment will be received as an ACH transfer to that account. Many Americans have already started to receive their stimulus payments. If the IRS doesn’t have direct deposit information on file, your payment will be mailed as a check or debit card.

The method of payment for your first stimulus payment does not indicate how you will receive your second payment. You may have received a debit card for your first stimulus check but receive a paper check for the second payment—or vice versa. The IRS and the Treasury Department encourage you to keep a close eye on your mail starting in early January. Check your box regularly if it is unsecured, and go through mail carefully to ensure your payment is not lost or trashed.

The Economic Impact Payment Card is issued by MetaBank, N.A., and the Treasury seal will be prominently displayed on the envelope. 

When Is My Stimulus Payment Available?

While many second stimulus checks are populating in bank accounts already, these payments are provisional or pending until the official date of payment on Jan. 4, 2021. This delay may seem unnecessary, but the official date in January ensures everyone receives their stimulus checks during the 2021 tax year. 

To speed the delivery process along, the Bureau of Fiscal Service, a division of the U.S. Treasury will send out a limited number of payments by debit card. While direct deposits are already turning up, checks and debit cards sent by mail will take substantially longer to process and arrive—the IRS and Treasury Department say that Get My Payment will be updated to reflect the date that your check or debit card was mailed, and it typically takes up to 14 days for you to receive the payment. 

How to Check Your Stimulus Check Payment Status

The IRS offers a Get My Payment tool in English and Spanish to check the status of both the first and second stimulus checks. The tool is currently offline for updates, but is anticipated to be available within a few days. 

Keep an eye on the status of your payment to determine when and how your payment will arrive.

What Should I Do Now?

Keep an eye on your bank account for a direct deposit. Go to Get My Payment after the new year to check on the status of your payment. If you moved or closed your bank account since your last tax filing, take a look at Where Is My Stimulus Check? When Will I Get It? for more information.