The Irs Classifies Me As An Older Adult What Should I Know
Many older adults, including retirees over age 65, received a first stimulus check under the CARES Act and were eligible for the second one — and are for the third as well. For older adults and retired people, factors like your tax filings, your AGI, your pension and if you’re part of the SSI or SSDI program will affect whether you receive a stimulus payment.
The third stimulus check makes older adult dependents eligible to receive more money on behalf of the household. Here’s how to determine if you qualify for your own stimulus check or count as a dependent.
How much stimulus money you could get depends on who you are.
How To Make The Most Out Of Your Stimulus Check
- If you dont need to use your stimulus check for anything urgent, consider investing or saving the money. A financial advisor can help you get started if youre need help managing your money or investments. SmartAssets free tool can match you with financial advisors in your area in just five minutes. Get started now.
- If coronavirus is affecting your finances, dont only rely on the stimulus check program. You may find aid in the form of mortgage forbearance, student loan relief and other programs. Check with all relevant federal and state sources.
- Are you a small business owner looking for coronavirus relief? Be sure to explore the Paycheck Protection Program and Economic Injury Disaster Loans . Use our PPP calculator and list of available PPP lenders.
How Likely Is A Fourth Stimulus Check
Don’t hold your breath, according to Wall Street analysts.
For one, the Biden administration has focused on infrastructure spending to spark economic growth, betting that an investment in roads, trains and other direct investments will help get people back to work and spur the ongoing recovery.
Secondly, economists have pointed fingers at relief efforts such as the three rounds of stimulus checks for contributing to inflation. Because Americans had cash in their pockets, they boosted spending on goods such as furniture, cars and electronics. Combine that with the supply-chain crunch, and the result was sharply higher inflation, according to economists.
Without new stimulus efforts on the horizon, it’s likely that inflation could moderate in 2022, according to Brad McMillan, the chief investment officer at Commonwealth Financial Network. “One cause of inflation has been an explosion of demand driven by federal stimulus,” he noted in a December report. “But that stimulus has now ended.”
He added, “Yes, we will continue to face inflation and supply problems, but they are moderating and will keep doing so.”
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Can Creditors Take My Check
Can back taxes or child support be taken out of the checks? The stimulus payments are not taxable and are not subject to garnishment by the government for back taxes or student loan defaults. The same is true for past due child support payments or private debts–for the second and third stimulus checks.
Can my bank take my stimulus check? If your bank account is overdrawn because of overdrafts or outstanding fees, your bank may take part or all of your stimulus check to bring your account even. However, when the second stimulus check came out, many large banks stated that they would bring customers’ bank balances to zero, temporarily, so that customers could access their stimulus checks. This includes Bank of America, Wells Fargo, Citigroup, and JPMorgan Chase.
Stimulus Check Scams And Hoaxes
Of course, popular demand for widely distributed stimulus payments, and the confusing political maneuvering that goes into crafting stimulus bills, creates an information gap that’s easily exploited by scammers.
Even with the first wave of stimulus checks in 2020, we saw bogus email messages that pretended to be from the IRS, promising “an important update on your Covid relief fund.” But they just took you to phishing sites that wanted your Social Security number and other sensitive bits of information.
Following the second stimulus bill at the beginning of 2021, those email phishing attempts were joined by scam phone calls demanding your personal details so that you could be “cleared” to receive more stimulus checks.
In March, as President Biden’s American Rescue Plan was making its way through Congress, new phishing emails promised the moon: a $4,000 stimulus check, a boost in the minimum wage, free meals and, best of all, priority treatment that let you skip lines at COVID-19 vaccination sites.
Most recently, cruel pranksters have been passing around posts on Facebook that a fourth stimulus check worth $2,500 is coming by the end of July. Don’t believe it, and don’t believe the phishing websites that claim to register you for child-tax-credit advance payments.
In fact, most parents and legal guardians don’t need to do anything to get the payments they’ll just show up in your mailbox or bank account.
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How Much Will Your Payment Be
The amount of the payment depends on your income.
- For the third round of stimulus checks: Most individuals earning $75,000 or less will receive a payment of $1,400. who file taxes jointly and earn $150,000 or less will receive a payment of $2,800. Families are eligible to receive an additional $1,400 per dependent. For this round of stimulus checks, the eligible dependent does not need to under the age of 17. For example a family of four could receive $5,600. Use our stimulus check calculatorto see how much your family can expect in the third round of stimulus checks.
- For the second round of stimulus checks: Most individuals earning $75,000 or less will receive a payment of $600. Married couples who file taxes jointly and earn $150,000 or less will receive a payment of $1,200. Families are eligible to receive an additional $600 per child. For example a family of four could receive $2,400.
- For the first round of stimulus checks: Most individuals earning $75,000 or less received a payment of $1,200. Married couples who file taxes jointly and earn $150,000 or less received a payment of $2,400. Families were eligible to receive an additional $500 per child. For example a family of four could have received up to $3,400.
Individuals and married couples that make more than the amounts above may still be eligible for a payment. Use our stimulus check calculator to see if you are still eligible for a payment.
Some Americans Will Be Getting A Fourth Stimulus Check
Despite the fact a fourth check won’t happen for most Americans, some will get another payment in 2022. This can happen if:
- They did not receive their full stimulus payments in 2021. Those who missed out on part or all of their payments could include people whose incomes dropped in 2021 and who became eligible for a stimulus check despite their 2020 income being too high to qualify. Anyone who added a dependent last year may also be owed payments due for that dependent. To get this money, it will be necessary to file a 2021 tax return.
- Their state provides another stimulus check. Some states are using money provided by the federal government for COVID-19 relief to provide payments this year.
Outside of these situations, Americans shouldn’t expect more help from Washington in the form of a fourth stimulus check in 2022 unless the pandemic takes a devastating turn.
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How Much Will Adult Dependents Get
Adult dependents qualify under the American Rescue Plan for a third stimulus check. This means that college students, elderly relatives and disabled adults can get a maximum payments of $1,400 each, depending on the AGI of the taxpayer who claims them.
The text for the new legislation expanded the meaning of the term dependent to include both qualifying children and adults. For reference, the first and second stimulus checks limited additional payments to dependents under the age of 17.
So now, if you file your joint taxes with one child under 17, one college student over 17 and one elderly relative as dependents, you could get a maximum third stimulus payment of $7,000 .
For a comparison with the second stimulus check, you would only qualify for $1,800 as a joint filer with the same number of dependents and ages . Children or adult dependents over the age limit could not get the additional payment, and your college student and elderly dependents could not qualify for a stimulus check of their own either.
The Stimulus Became Political
Part of the problem is that the last rounds of stimulus the checks that went out in December 2020 and March 2021 may actually have been too big. But the decision to send an extra $2,000 to most Americans wasnt backed by evidence or economic calculations. It was shaped by politics.
Though the CARES Act passed on a near-unanimous, bipartisan basis in March 2020, when former President Donald Trump was in office, a much different story played out in the transition from his administration to now-President Bidens. Toward the end of 2020, Trump pushed for additional $2,000 payments, which House Democrats supported and later passed, but that effort was blocked by Republicans in the Senate who were alarmed by the price tag. Ultimately, direct payments of just $600 were greenlit despite broad-based support for the bigger checks among voters of both parties.
But Democrats, with control of the Senate hanging in the balance, decided to campaign for larger stimulus checks in the run-up to the Georgia run-off elections. Its impossible to know whether support for the checks gave now- Sens. Raphael Warnock and Jon Ossoff their respective edges, but Democrats did end up winning both seats and passing the American Rescue Plan two months later, which included $1,400 checks to meet the desired $2,000 target.
Instead of helping Biden and his party, then, the stimulus could end up hurting them in the 2022 midterm elections.
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What Kind Of Housing Help Is Coming
The stimulus package provides billions of dollars in rental and utility assistance to people who are struggling and in danger of being evicted from their homes.
Nearly $22 billion will go toward emergency rental assistance. The vast majority of it replenishes the so-called Coronavirus Relief Fund, created by the CARES Act and distributed through state, local and tribal governments, according to the National Low Income Housing Coalition. Thats on top of the $25 billion in assistance provided by the relief package passed in December.
To receive financial assistance which could be used for rent, utilities and other housing expenses households have to meet several conditions. Household income cannot exceed 80 percent of the area median income, at least one household member must be at risk of homelessness or housing instability, and individuals have to qualify for unemployment benefits or have experienced financial hardship because of the pandemic.
Lower-income families that have been unemployed for three months or more will be given priority for assistance.
Use Our Calculator To Find Out The Amount Of Your Third Coronavirus Stimulus Payment
By Bethany K. Laurence, Attorney
Congress passed a third stimulus payment package last week, and some direct deposits started to go out over the weekend of March 13-14. The new checks are for up to $1,400 per person and $1,400 per dependent . Those who file joint returns will get up to $2,800. The calculator below will display the amount you can expect to get, depending on your income and whether you have dependents. Because of lower income phaseouts, single people making more than $80,000 in adjusted gross income and married people more than $160,000 in AGI will not receive a check this time.
Some examples: A family of four earning $140,000 will receive a second stimulus check for $5,600. A single mother who makes $78,000 per year and has one child and will receive $1,120. A 70-year-old retiree whose only income is Social Security will receive $1,400.
In January of this year, the U.S. Treasury sent out about 158 million second stimulus checks , but fewer households are expected to receive a third stimulus check because of the lower income phaseouts .
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How To Get Your Stimulus Check
Using stimulus funds can help you manage your entire financial picture, including getting a handle on The guide helps you understand if you are eligible in these cases:
- If you havent filed federal taxes or have no income
- If you dont have a bank account or a pre-paid debit card
- If you have moved since you last filed taxes
- If you receive Social Security Benefits
- If youve already filed taxes and are signed up for direct deposit
The vast majority of Americans will be eligible to receive a third stimulus check from the federal government. Even if you have no income, you are still eligible but need to take action.
Fourth Stimulus Check Update: Payments Worked Could Be Used Again In Case Of Recession
Americans benefitted greatly from stimulus checks during the beginning of the COVID-19 Pandemic, and now, with the threat of a Recession looming, some have wondered if other rounds of payments could be on the horizon as many struggle with record inflation. While no decisions have made yet, some experts feel that if a Recession does in fact happen, that the government could consider sending out more checks as a result.
Speaking to CNBC, several financial experts indicated that a recession could trigger the government to send out another round of stimulus checks, as Americans may need the funds. However, the likeliness also depends on what is believed to have triggered the recession, according to Joseph Vavra, an economics professor at the University of Chicago.
In his analysis, Vavra stated that because some believe the high inflation rates are at least partially tied to the three rounds of COVID-19 stimulus checks, and a recession could be triggered because the Federal Reserve continues hiking interest rates, checks would be counterproductive. However, he also noted that if a recession got bad enough, the government would likely change its tune.
I think its likely they may be used again in future deep recessions, he said.
However, while Vavra was more cautious about the possibility checks would be utilized again, others felt that they could be more guaranteed.
Representation. A COVID-19 stimulus check.Photo: Pixabay
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When Will I Get The Payment And What Can I Do If I Dont Get It
The IRS is sending the third round of payments out to American families, but we are not sure how long this will take. We believe the IRS will continue to send the third round of payments until December 2021. Because this third round of stimulus is actually an advance payment of a tax credit for tax year 2021, you should be able to claim this credit on your 2021 tax return if you do not get it by the end of 2021.
The New ‘fourth Stimulus Check’ Starts In July
Here is the catch: In what amounts to essentially a fourth stimulus check, know that beginning in July, millions of struggling parents will receive a $250 or $300 payment each month under the expanded child tax credit.
Millions were likely disappointed Wednesday evening when President Joe Biden, in addressing a joint session of Congress, failed to directly push for a fourth or even a fifth round of stimulus funds.
This, however, didnt come as a big surprise. Many of those who are reluctant to give more monetary assistance have pointed out that Congress has already approved the delivery of three stimulus cash paymentsa $1,200 check in April 2020, $600 in December, and the current $1,400 payments under Bidens $1.9 trillion American Rescue Plan.
But if one peels back the layers of what was said on Wednesday night, there is indeed increasing hope that more help is in the offing. In short, the third round of stimulus payments have done so well, why stop now?
We kept our commitment, and we are sending $1,400 rescue checks to 85 percent of all American households, Biden said, per his prepared text. Weve already sent more than one hundred sixty million checks out the door. Its making a difference. For many people, its making all the difference in the world.
In what amounts to essentially a fourth stimulus check, know that beginning in July, millions of struggling parents will receive a $250 or $300 payment each month under the expanded child tax credit.
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How Will The Stimulus Checks Affect My Taxes
The IRS doesnt consider your stimulus checks taxable income. So you will not have to report them on your tax return or pay income taxes for them.
If you are an eligible recipient who didnt get the first or second stimulus check, you can claim a recovery rebate credit to increase your tax refund or lower your tax liability.
This means that if you expect to get money back on your 2020 tax return, you could get a bigger refund depending on how much stimulus money you are owed. And comparatively, if you have to pay a tax bill, you can use the recovery rebate credit to offset it and get a refund for the remaining amount.
Taxpayers this year will look to their tax refunds as another source of extra money during the pandemic. In 2020, the IRS paid out more than $2,500 for the average tax refund. This year, it is expecting over 150 million tax returns to be filed.
The 2021 tax season starts on February 12. You will have to file your 2020 tax return by April 15.
Who Is Eligible For A Stimulus Check
The vast majority of Michigan residents are eligible to receive a stimulus check from the federal government this year. Even if you have no income, you are still eligible, but need to take action to receive your stimulus payment. This includes individuals with low or no earnings who normally don’t file taxes. Every American adult earning less than $75,000 is eligible for a stimulus check from the federal government this year. While this site is geared toward Michigan residents, the information is applicable nationwide.If you still have questions about your stimulus check after reviewing this website, call the IRS at or, United Way at .
After you sign up, make sure to add your account information on the IRS website. If you dont want to sign up for a bank account, you can also link to your prepaid debit card instead.You can also receive your funds through the Cash App, by providing the IRS with the routing and account numbers connected to your Cash App. You can download the Cash App or locate your Cash App account information here.
What if I havent filed taxes?
What if I dont qualify – where else can I get help?
If you dont qualify for the stimulus payment, we recommend reaching out to Michigan 2-1-1. They can connect you to resources in your community.
Will my payment be reduced or offset if I owe tax, have a payment agreement with the IRS, owe other Federal or State debt, or owe other debt collectors?
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