This morning, I found a very small deposit in my bank account; it was coded “IRS 310”. It’s the second stimulus payment, and it’s real. Kudos to the IRS for getting these out almost instantaneously with the signing of the legislation Sunday night.
Remember, your tax professional will need to know the amount of payment you received. In theory, you will get another letter in the mail noting this amount. Give that letter (and the previous letter) to your tax professional. The stimulus payments (technically, the Economic Recovery Payments) are advances on a refundable tax credit on your 2020 tax returns.
If you received less than the full amount you should have, you will be able to obtain the tax credit on your 2020 return. If you received more than you should have (let’s say your income increased in 2020), you do not have to pay the credit back.
Tags: 2020.Tax.Season