Key Comparison of the covid relief programs

As with the EIP 1 and EIP2, most recipients will receive these payments by direct deposit.

●   For Social Security and other beneficiaries who received the first round of payments via Direct Express, they will receive this second payment the same way.

●   Debit cards are being issued again. New cards are issued for each EIP.

●   The IRS cannot change payment information, including bank account or mailing

information. No non filer tool for this EIP Payment.

●   Credit is NOT subject to offset like EIP1 and EIP2.

Special temporary rule allowing lower income individuals to use their

earned income from tax year 2019 to determine the EITC

In the 2020 tax year, the taxpayer may elect to use 2019 earnings instead of

2020 earnings to calculate the credit, if they choose.

New: In the 2021 tax year, the taxpayer may again elect to use 2019 (note,

not 2020!) earnings instead of 2021 earnings to calculate the credit, if they

choose.

So, this is a provision that will be ongoing for at least one more tax year after

this one keep it in mind while tax planning.