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Covid-19 Impact

Covid-19 Economic Relief Package: Frequently Asked Questions about the Second Stimulus

Mark Steber Chief Tax Information Officer Published On December 28, 2020

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UPDATED ON: January 11 2021

An emergency COVID-19 economic relief bill was signed into law on December 27, 2020. Here’s what taxpayers need to know about the new law.

What are the payment amounts for the second round of stimulus?

The payment amounts for the second round of stimulus are as follows:

  • $600 per eligible taxpayer
  • $600 per qualifying child dependent under age 17 

What are the income limits for the second round of stimulus?

  • $75,000 for Single/Married Filing Separately taxpayers
  • $150,000 for Married Filing Jointly taxpayers
  • $112,500 for Head of Household

For those above these income levels, the stimulus payment amount will be reduced by $5 for each $100 that your income is above these thresholds. 

A family of four is not eligible for a stimulus payment if their income is $198,000 or greater; a married couple with no children would no longer be eligible if their income is $174,000 or greater, and an individual taxpayer would no longer be eligible if their income is  $87,000 or greater.

Will older children who I claim as dependents receive a stimulus payment?

Individuals and children older than 17, who are dependents on another taxpayer’s return are not eligible for a stimulus payment.

 

Will people who have died since the first stimulus payment was issued receive this second payment?

Those who died before Jan. 1, 2020, are not eligible for the stimulus payment. 

Will people who do not have a Social Security number but instead have an Individual Taxpayer Identification Number (ITIN) instead receive a stimulus payment?

As was the case under the first round of stimulus payments, taxpayers without an SSN are not eligible for the stimulus payment.

Individuals with an ITIN do not qualify for the stimulus payment. However, if the individual is married to a taxpayer with an SSN, the spouse - and any qualifying children with an SSN - are eligible for the stimulus payment.

When will the government start issuing stimulus payments?

The IRS began sending out stimulus payments in the last week of December, 2020.

Where will my 2nd stimulus check be sent?

Jackson Hewitt always fights for its clients and the situation of millions of taxpayers not having their second stimulus payment due to an IRS error was no exception. We considered this chain of events absolutely unacceptable and worked tirelessly with the highest levels of the U.S. Treasury Department, the IRS (including the IRS Commissioner), and other parts of the federal government to find a solution that ensured our customers would get what they were owed as quickly as possible.

We’re happy to confirm that the IRS will start processing stimulus payments when their systems come back online and impacted Jackson Hewitt taxpayers will have payments processed by February 1. This means they will receive their funds weeks earlier than if they needed to wait for their tax refund.

We are extremely disappointed that the IRS did not agree to solutions we recommended that could have rectified their error much sooner, but we are pleased that the hundreds of thousands of hardworking Americans impacted by this mistake will finally receive the relief they deserve. On their behalf, we will never tolerate anything less.

Did you receive a Refund Advance and/or Assisted Refund in your 2020 tax return?
How did you receive your first stimulus?

Check the IRS Get My Payment tool to understand if your payment was made. If it does not show payment made, then you'll likely be receiving a paper check or prepaid card in the mail.

But it's still a good idea to file your taxes now and learn how new tax laws can get you a bigger refund.

You will receive a Check or Prepaid Card in the mail, unless you successfully changed your information through the IRS Get my Payment tool after your received your first stimulus payment.

But it's still a good idea to file your taxes now and learn how new tax laws can get you a bigger refund.

IRS will have payments processed by February 1.

But it's still a good idea to file your taxes now and learn how new tax laws can get you a bigger refund.

How do I update my DD information?

Jackson Hewitt does not have the ability to view your EIP history or access your account with the IRS. Please visit irs.gov for the latest updates and guidance regarding the latest round of EIP payments.

Will the stimulus payment be disbursed onto Serve cards?

The IRS has not yet advised on this. Please visit irs.gov to be informed of the latest updates regarding the latest round of payments.

Can I change my disbursement method?

The IRS has not yet advised on this. Please visit irs.gov to be informed of the latest updates regarding the latest round of payments.

Do I need to have direct deposit in order to get the stimulus payment?

You don’t have to have a direct deposit account in order to get your stimulus. The IRS has indicated that it plans to send checks or a prepaid card to eligible recipients if they do not have direct deposit information on file.

How will the government determine where to send my stimulus payment?

The IRS will send stimulus payments to the address listed on your most recent tax return unless you sent a change of address after the first round of stimulus payments.

Will I be able to update my banking or address information?

The IRS has not yet advised on this. Please visit irs.gov to be informed of the latest updates regarding the latest round of payments.

About the Author

Mark Steber is Senior Vice President and Chief Tax Information Officer for Jackson Hewitt. With over 30 years of experience, he oversees tax service delivery, quality assurance and tax law adherence. Mark is Jackson Hewitt’s national spokesperson and liaison to the Internal Revenue Service and other government authorities. He is a Certified Public Accountant (CPA), holds registrations in Alabama and Georgia, and is an expert on consumer income taxes including electronic tax and tax data protection.

More about Mark Steber Our Editorial Policy

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