THE TRANSATLANTIC MAGAZINE
THE TRANSATLANTIC MAGAZINE
The US Treasury and the IRS have begun the process of delivering the second round of economic impact payments.
Over the Holidays, Congress passed the Coronavirus Response and Relief Supplemental Appropriations Act, which contains provisions for payments of up to $600 to be made to qualifying US taxpayers, and an extra $600 credit per child dependents aged 16 or under.
Taxpayers who earned under $75,000 during the 2019 tax year will be eligible to receive the full $600 payment, with those earning up to $89,000 eligible for a smaller percentage.
As with the first economic impact payments, overseas Americans who have a social security number will be eligible to receive a payment. Most payments will be processed automatically in a format similar to the first round, so if you received your first economic impact payment via direct debit, you should receive your second in the same way.
However, the IRS do note that "Some people who received a paper check last time might receive a debit card this time, and some people who received a debit card last time may receive a paper check." Overseas US taxpayers raised concerns over paper checks in the aftermath of the first economic impact payments, with many citing the financial and administrative difficulties associated with cashing a US check overseas. However, it’s unclear if the IRS will be prioritising prepaid debit cards for overseas Americans who will receive a second impact payment.
Discussing the second impact payment, IRS Commissioner Chuck Rettig said "We are working swiftly to distribute this second round of payments as quickly as possible. This work continues throughout the holidays and into the new year as we prepare for the upcoming filing season. We urge everyone to visit IRS.gov in the coming days for the latest information on these payments and for important information and assistance with filing their 2021 taxes."
For more information on the second impact payments, go to www.irs.gov/newsroom/treasury-and-irs-begin-delivering-second-round-of-economic-impact-payments-to-millions-of-americans
