The Internal Revenue Service disbursed more than 1.8 million additional Economic Impact Payments totaling over $3.5 billion under the American Rescue Plan in the past two weeks.
The IRS and the Treasury said Wednesday they have disbursed nearly 167 million payments so far, with a total value of approximately $391 billion, since these payments started on March 12 with the help of the Bureau of the Fiscal Service. More than 900,000 payments, valued at about $1.9 billion, were sent to eligible people for whom the IRS previously lacked information to issue an Economic Impact Payment but who recently filed a tax return.
The IRS has also been making so-called “plus-up payments” — supplemental payments for people who earlier this year received payments based on their 2019 tax returns, but who were eligible for a new or larger payment based on their recently processed 2020 tax returns. In the past two weeks, more than 900,000 plus-up payments, valued at more than $1.6 billion, were sent. In all, the IRS has made nearly 7 million of these supplemental payments this year.
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The relief is part of the federal government's efforts to support the economy during the COVID-19 pandemic. The money is part of the third round of Economic Impact Payments that have been delivered after the passage of the CARES Act and the Consolidated Appropriations Act last year and the American Rescue Plan Act this year.
Direct deposit remains the fastest way for the IRS to distribute the payments. Over the last two weeks of payments contain more than 900,000 direct deposit payments (with a total value over $1.6 billion), with the remainder as paper check payments.
The IRS said it would continue to make Economic Impact Payments on a weekly basis: “Ongoing payments will be sent to eligible individuals for whom the IRS previously did not have information to issue a payment but who recently filed a tax return, as well to people who qualify for ‘plus-up’ payments.”
While the payments are automatic for most people, the IRS is urging those who don’t normally file a tax return and haven’t yet received their Economic Impact Payments to file a 2020 tax return to get all the benefits they’re entitled to under the law, including tax credits such as the 2020 Recovery Rebate Credit, the Child Tax Credit, and the Earned Income Tax Credit. Filing a 2020 tax return will also help the IRS determine whether someone is eligible for an advance payment of the 2021 Child Tax Credit, which it plans to begin disbursing this summer. The IRS is in the process of setting up online portals for the Child Tax Credit, which provides $3,000 to $3,600 per child, depending on their age, in the hopes of reducing childhood poverty for families.
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