Inside This Issue
1. IRS begins delivering third round of Economic Impact Payments to Americans
The IRS announced that the third round of Economic Impact Payments will begin reaching Americans this week.
No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how people received the first and second round of Economic Impact Payments in 2020. In general, most people will get $1,400 for themselves and $1,400 for each of their qualifying dependents claimed on their tax return.
The third round of Economic Impact Payments news release covers:
Expanded qualifying dependents
How to check payment status
Under the new law, the third round of Economic Impact Payments cannot be offset to pay various past-due federal debts or back taxes.
2. Tax Day for individual taxpayers extended to May 17
The Treasury Department and IRS announced that the federal income tax filing due date for individuals for the 2020 tax year will be automatically extended from April 15, 2021, to May 17, 2021.
This postponement applies to individual taxpayers, including individuals who pay self-employment tax.
See the news release for more information, including:
No need to file forms or call for this automatic relief
Postponing federal tax payments
This does not apply to estimated tax payments
State tax returns
Winter storm disaster relief
3. American Rescue Plan Act of 2021 – Don’t file related amended returns yet