There's another round of "Economic Impact Payments" that many of you may have already received in January via direct deposit. Generally, U.S. citizens and resident aliens who are not eligible to be claimed as a dependent on someone else’s income tax return are eligible.

You'll automatically receive payments of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child.

Generally, if you have adjusted gross income (AGI) on your 2019 federal income tax return up to $75,000 for individuals, $112,500 if filing as head of household and $150,000 for married filing joint returns, you will receive the full amount.

Payments are reduced if your income is more than that, phasing out 5% of the amount your AGI exceeds the amounts shown above. They phase out completely at an AGI of $87,000 for single or married filing separately, $124,500 for head of household and $174,000 for married filing joint taxpayers.

Question: My income precludes me from getting an Economic Impact Payment based on my 2019 tax return but it dropped in 2020. Do I still get a payment?”

Answer: YES! According to the draft IRS Form 1040 Instructions published December 31, 2020, “The recovery rebate credit was paid out to eligible individuals in two rounds of advance payments called economic impact payments. The economic impact payments were based on your 2018 or 2019 tax year information. The recovery rebate credit is figured like the economic impact payments except that the credit eligibility and the credit amount are based on your 2020 tax year information. If you didn’t receive the full amount of the recovery rebate credit as economic impact payments, you may be able to claim the recovery rebate credit on your 2020 Form 1040 or 1040-SR.”

So in other words:

• The first two payments in 2020 and 2021 were called Economic Impact Payments

• They were based on your 2019 or 2018 tax information.

• If you did not receive them or did not receive the full amount, you can recalculate the payments on your 2020 tax return based on your 2020 adjusted gross income.

• The refundable credit for this stimulus on your tax return is called “Recovery Rebate Credit.”

• If you are indeed eligible for a payment based on your 2020 AGI and did not previously receive a full payment, you will receive a refundable credit on your tax return that you can either apply to any taxes due or, if no taxes are due, receive a refund.