Phil Hogan is a Canadian and US CPA working with clients throughout Canada and the US. Phil advises on cross border tax and financial planning matters. Phil can be reached at phil@beaconhillwm.ca or via telephone at 778.433.1314. You can also read more about Phil at www.Beaconhillwm.ca/team/about-phil/

IRS Guidance on Second Stimulus Payments
The US treasury and the IRS have recently released some guidance on the second stimulus payment. I’ll outline a summary of these updates below:
Overview
The IRS and the Treasury Department expects the first American taxpayers to receive their payments starting this week.
Taxpayers are not required to request payments as stimulus payments will be made automatically to those eligible. Eligible taxpayers that filed a 2019 US income tax return or those that registered for the first stimulus payment will be automatically be sent payment.
For those that did not receive the first stimulus check via direct deposit they will be receiving physical checks or pre-loaded debit cards.
Those that did not receive stimulus payments earlier in the year will be able to request payments as part of their 2020 US 1040 income tax filings.
The amount of the second stimulus payment will be $600 for single filers and $1,200 for married filers including $600 for each qualifying child.
You are eligible for the second stimulus payment if:
- you are a US citizen or a US resident alien that is not being claimed as a dependent for tax purposes
- for single filers with income under $75,000 or joint filers with income of less than $150,000 full payments will be received
- for those over this threshold stimulus payments will be reduced
Eligible individuals can check the status of their stimulus payment by checking the “get my payment” tool.
For those that have not signed up for direct bank payments, the department will be sending out paper checks or pre-loaded debit cards.
The IRS confirmed that those not required to file US income tax returns (SS, railroad retirees, etc) will still receive payments based on information they gathered from other federal and state governments.
If you’ve yet to sign up for direct deposit or check request and have not filed a 2019 income tax return ensure to file your 2020 as soon as possible to receive your stimulus check for both 2019 and 2020.
Note that expats living abroad will also be receiving the second stimulus payments assuming they meet the regular payment criteria listed above.
The IRS will send out confirmation of payments in 2021.
For more information on stimulus payments you can visit the following websites:
This commentary reflects the personal opinions, viewpoints and analyses of the Beacon Hill Wealth Management Ltd. partner providing such comments, and should not be regarded as a description of advisory services provided by Beacon Hill Wealth Management Ltd. or performance returns of any Beacon Hill Wealth Management Ltd. client. The views reflected in the commentary are subject to change at any time without notice. Nothing in this commentary constitutes investment advice, performance data or any recommendation that any particular security, portfolio of securities, transaction or investment strategy is suitable for any specific person. Any mention of a particular security and related performance data is not a recommendation to buy or sell that security. Beacon Hill Wealth Management Ltd. manages its clients’ accounts using a variety of investment techniques and strategies, which are not necessarily discussed in the commentary. Investments in securities involve the risk of loss. Past performance is no guarantee of future results. Any discussion about taxation is for educational purposes only and should not be viewed as professional advice. Consult your tax professional for tax advice on your particular situation.
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