Virginia Davis, MFA
Senior Accountant

Starting the last week of December, the second round of economic impact payments went out to eligible taxpayers, with more payments to be made in the following weeks ahead through the mail. Those who received their first payment through direct deposit should have already received their second payment by January 5, 2021, if the IRS had your valid routing and accounting information. Some were eligible who should have received their second payment through direct deposit but have not.

The good news for them is that not all is lost!

By going to the IRS – Get My Payment website, a taxpayer can check the status of their economic impact payment. The IRS states that there are three options that the website can show.

• First, if Get My Payment (GMP) reflects a direct deposit date and partial account information, then your payment is deposited in that bank account.

• Second, if GMP reflects a date your payment was mailed, expect a check or a prepaid debt card in the mail in 3-4 weeks.

• Lastly, if GMP shows “Payment status #2 – Not available” then the taxpayer will not receive a second payment, and instead will need to claim the Recovery Rebate Credit on their 2020 tax return.

There are a couple of possibilities as to why the taxpayer’s payment status is not available. The most common reasons include changed or unconfirmed banking information. In these situations, and many others, the taxpayer will still receive their economic impact payment if eligible but will have to do so by claiming it on their 2020 tax return.

In another commonly reported issue, the GMP reflects a direct deposit date but the account information where the payment was deposited is not recognizable. This has occurred mostly with people who used H&R block and TurboTax, who paid for the tax preparation services using their 2019 refund. These second payments were sent to the company instead of being sent to the taxpayer themselves. There is nothing that the taxpayer needs to do at this time, but when they file their 2020 tax return, they should claim the recovery rebate credit.

Another item to note: if a taxpayer’s family had a child born in 2020, they are eligible to receive additional money for that child. They are eligible for up to $1,100 if they meet the income limits and did not receive any stimulus checks for the child earlier in the year. To receive this extra money, the taxpayer will claim the recovery rebate credit on their 2020 tax return.

If you are expecting your economic impact payment in the mail, the IRS advises taxpayers to be on the lookout for a white envelope that prominently displays the U.S. Department of the Treasury seal.