The possibility of new $1200 federal checks has sparked interest among millions of Americans, especially as economic recovery continues.
Although no new payments are confirmed, understanding the process based on previous Economic Impact Payments (EIPs) can help you stay prepared if new federal relief payments are introduced. Here’s a comprehensive guide on eligibility, payment dates, direct deposit setup, and ways to avoid common pitfalls.
History of Federal Economic Impact Payments
Economic Impact Payments were initially introduced during the COVID-19 pandemic to support Americans during difficult times. Here’s a recap of the previous payments:
| Round | Date | Payment Amount |
|---|---|---|
| First Round | March 2020 (CARES Act) | Up to $1,200 per individual; $500 per dependent |
| Second Round | December 2020 | Up to $600 per individual |
| Third Round | March 2021 (American Rescue Plan) | Up to $1,400 per individual, including dependents |
These payments reached millions of Americans and were critical for essential expenses like rent, utilities, and groceries.
Eligibility Requirements for a $1200 Federal Relief Check
If a new round of $1200 payments is approved, eligibility is likely to be similar to prior rounds. Here’s what to expect:
1. Income Levels
Eligibility thresholds from previous payments may apply:
- Individuals: Full payment if adjusted gross income (AGI) is $75,000 or less, phasing out at $99,000.
- Married Couples (Joint Filers): Full payment with AGI up to $150,000, reducing until $198,000.
- Head of Household: Full payment up to $112,500, phasing out at $136,500.
2. Tax Filing Status
Your tax filing status (individual, joint, or head of household) determines eligibility and payment amount. Filing taxes ensures that the IRS has updated information for verification.
3. Dependents
In previous rounds, dependents added to the payment amount:
- Under 17: Additional payments ranged from $500 to $1,400 per dependent.
4. Social Security, SSI, and Disability Recipients
Recipients of Social Security, Supplemental Security Income (SSI), and disability benefits automatically qualified for previous payments.
5. Non-Filers
Low-income individuals who don’t typically file taxes could use the IRS’s Non-Filers Tool to apply for past payments. A similar tool may be made available if additional payments are approved.
Setting Up Direct Deposit with the IRS
Direct deposit is the fastest method to receive federal payments, allowing funds to reach recipients directly and avoid delays associated with paper checks.
Steps for Setting Up Direct Deposit:
- Log into Your IRS Account: Go to IRS.gov and sign in or create an account.
- Update Bank Information: Under “Direct Deposit,” enter or confirm your bank account details.
- Check the “Get My Payment” Tool: This tool provides real-time updates on your payment status and preferred distribution method.
Setting up direct deposit through the IRS ensures funds arrive promptly, while mailed checks or debit cards may take longer.
Practical Tips to Avoid Scams
Unfortunately, federal payments often attract scam attempts. Here are ways to protect yourself:
- Use Only Official Sites: Access information only on IRS.gov.
- Ignore Requests for Payment Fees: The IRS does not charge fees for issuing payments.
- Verify Suspicious Communications: Be cautious of emails or texts claiming to be the IRS. If in doubt, contact the IRS directly.
Tracking Your Payment Status with “Get My Payment”
The IRS’s “Get My Payment” tool is essential for tracking any federal payment. Here’s how it works:
- Visit the IRS Website: Go to the Get My Payment page on IRS.gov.
- Enter Required Information: You’ll need your Social Security number, date of birth, and address.
- Check Payment Status: This tool displays scheduled payment dates, amounts, and the payment method (direct deposit, check, or debit card).
Impact of Federal Relief Payments
Federal checks have been more than just temporary relief; they’ve provided essential support to households nationwide. According to a 2021 study by the U.S. Census Bureau, over 65% of recipients used their payments for critical needs like groceries, utilities, and rent.
For many, these funds enabled them to catch up on bills, pay down debt, or save for unexpected expenses, highlighting the crucial role of relief programs during challenging times.
By understanding these guidelines and preparing with the IRS’s online tools, you can ensure that you’re ready to receive any new payments if they’re approved.
