As mentioned last week here in this post, the $1400 + all dependents stimulus checks were approved and officially “On Their Way” or as they say the “Check is in the mail” a little over a week ago!
The most important item to know in this third round of checks are the almost “hard stop/cliff like” phase outs, unlike the prior stimulus funds, this phase out is steep and sharp. Single filers lose all benefits at $80k and joint filers $160k AGI.
Our Informal Observations Spotty Delivery
Delivery of the stimulus funds were much more spotty using our internal informal poll. Some families and their grown children as of today have seen nothing, even though they received funds immediately in the prior two rounds. Then in other situations after continued polling, we found no problems, with all grown children and families receiving their funds last week.
This popped into my inbox Monday from the IRS – Issue Number: IR-2021-62
More Economic Impact Payments set for disbursement in coming days; taxpayers should watch mail for paper checks, debit cards
WASHINGTON – The Internal Revenue Service announced today that the next batch of Economic Impact Payments will be issued to taxpayers this week, with many of these coming by paper check or prepaid debit card.
For taxpayers receiving direct deposit, this batch of payments began processing on Friday and will have an official pay date of Wednesday, March 24, with some people seeing these in their accounts earlier, potentially as provisional or pending deposits. A large number of this latest batch of payments will also be mailed, so taxpayers who do not receive a direct deposit by March 24 should watch the mail carefully in the coming weeks for a paper check or a prepaid debit card, known as an Economic Impact Payment Card, or EIP Card. No action is needed by most people to obtain this round of Economic Impact Payments (EIPs).
In a misery loves company, if you have not received your funds yet, YOU ARE NOT ALONE!
So do not worry.
Key Planning Technique
For those on the edge of the cliff phase out of single $80k or JT filing $160k this is for you.
if your 2019 Return is under these thresholds… do not file your 2020 until you get your funds.
If your 2020 Return will get you under the threshold… run, don’t walk to file your return.
If you fail both of the above filing years, you have a chance if your 2021 return falls under the threshold you will get the stimulus in the form of a refund after you file your 2021 Return.
Here is what this looks like in flow chart form:
Where to Check For Your Stimulus
Just as in the prior two instances of stimulus, the IRS has updated their site to help you find your availability, amount and how you may receive your stimulus.
Here is the direct link to the website for security purposes, as there are very important/confidential questions you must answer to get this information – do not let your browser jump to a different address as sensitive information is needed to do the check:
https://www.irs.gov/coronavirus/get-my-payment
Here is what the page should look like
There you have it….
Third round of stimulus findings, planning tips and techniques…
Have a Great “Third Stimulus Update” Day!
John A. Kvale CFA, CFP
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
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