Late on Dec. 29, the IRS announced that thesecond stimulus checkswere already on their way.
Compared to thefirst coronavirus check, theyre a lot leaner, but theyre also going out faster.
In some cases, you may qualify for one payment and not the other.
This post refers to stimulus checks issued in 2020. For the most up-to-date info, check out ourrecent tax articles.
Here are eight key differences to know.
You dont have to worry about owing taxes on your stimulus payment.
OK, now lets break down the differences.
The payments are smaller.
You get $100 more for dependent kids 16 and younger.
In the first round, thechild coronavirus tax creditswere $500.
In the first round, a married couple with two kids under age 17 would have received $3,400.
Now the same family will get $2,400.
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That means many college students and disabled people will be left out again.
The income phaseouts are lower.
For example, the first round didnt completely phase out for someone single until their income reached $99,000.
This time, that same person wouldnt get a verify if they earned more than $87,000.
Only your 2019 tax returns are considered.
Payments will be based on your 2019 tax return only for the second stimulus check.
For the first check, the IRS used your 2019 return if it was available.
People who owe child support will get checks.
People whoowe child supportwill get a $600 stimulus check.
Youll also receive a payment for dependent children 16 and younger.
You could get this one faster.
Paper checks were set to start going out Wednesday, Dec. 30.
The IRS has a tighter deadline.
But this time around, the IRS deadline for making payments is Jan. 15, 2021.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder.
She writes the Dear Penny personal finance advice column.
Send your tricky money questions to[email protected].
(Can you sense my millennial sarcasm there?)
You know which ones were talking about: rent, utilities, cell phone bill, insurance, groceries…
