Special Reminder For Those Who Don’t Normally File A Tax Return
People who don’t normally file a tax return and don’t receive federal benefits may qualify for stimulus payments. This includes those without a permanent address, an income or bank account.
If you’re eligible and didn’t get a first, second or third Economic Impact Payment or got less than the full amounts, you may be eligible for a Recovery Rebate Credit, but you’ll need to file a tax return.
Third Payments Differed From Previous Economic Impact Payments
The third payments differed from the earlier payments in several respects:
- Income phaseout amounts changed. Payments were reduced for individuals with adjusted gross income of more than $75,000 . The reduced payments end at $80,000 for individuals and $160,000 for married filing jointly. People above these levels did not receive any payment.
- Payment amounts are different. Most families received $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents received $1,400, while married filers with two dependents received $5,600.
- Qualifying dependents expanded. Unlike the first two payments, the third payment was not restricted to children under 17. Eligible individuals received a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.
What To Know About A Potential Fourth Stimulus Payment
Approved in March, the American Rescue Plan was the Biden administrations first stimulus package, which included $1,400 checks, $300 extra in weekly unemployment benefits and an expanded child tax credit running into 2022.
The White House has put forward two stimulus bills for 2021: the American Families Plan and the American Jobs Plan. Neither proposal calls for a new stimulus check at this stage. However, Democratic members of the House and Senate have thrown their weight behind a fourth stimulus check, including recurring or monthly payments. In late March, a group of 10 progressive lawmakers, including Sens. Elizabeth Warren and Bernie Sanders, asked Biden to include regular stimulus payments in his next stimulus package.
We urge you to include recurring direct payments and automatic unemployment insurance extensions tied to economic conditions in your Build Back Better long-term economic plan, the statement said. A few weeks later, a group of 21 Democrats made a similar request to Biden.
The most recent pitch for additional stimulus money came on May 17 from several members of the House Ways and Means Committee . Remarking on increased poverty and spiraling debt among Americans, their letter noted that most people spent relief checks on monthly expenses or essentials such as food, utilities, rent, and mortgage payments.
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Why It Could Happen: Stimulus Checks Have Been Distributed Following A Big Rise In Cases
If the situation with omicron worsens in the weeks and months to come, maybe another round of direct relief might come.
All three rounds of stimulus checks were distributed at times when there was a sharp rise in COVID-19 cases.
The first stimulus check was issued in April 2020 at the beginning of the pandemic, the second stimulus check was issued in January 2021 during the second wave, and the third stimulus check was issued in March 2021, while COVID numbers were still high and vaccines were still not available on a wide basis, according to The Motley Fool.
If the omicron variant is severe enough to warrant pandemic restrictions to be reintroduced, The White House might have to reconsider the idea of sending out more direct payments to offset the loss of income for individuals and loss of revenue for businesses.
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Some People Don’t Qualify For A Stimulus Check At All
The strict income cap Congress has set for the third check means you could quickly be disqualified from receiving a check or receiving much less than the potential amount the House and Senate agreed to. We explore that here, including changes in your personal life that may have an effect, such as if you got a raise in the past year or if you claim fewer dependents this time around. Here’s who might not qualify for a new stimulus check.
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Which Tax Return Is Used For My Third Stimulus Check
The IRS uses 2019 or 2020 tax returns to determine eligibility for your third stimulus check. You should note that if your income fell in the 2020 tax year, filing your tax return earlier could help you qualify for a bigger third stimulus check. The new stimulus plan targets lower income ranges to exclude higher-earning taxpayers from getting a payment.
As we pointed out before, individuals making under $75,000 get the maximum stimulus payment of $1,400 . But payments are capped at $80,000 for single filers and $160,000 for couples. So filing at the beginning of the tax season with a lower income may help you qualify for a bigger check. But, if your income went up in tax year 2020, then you may want to delay filing so that eligibility is determined by your lower 2019 income.
You might also want to file early if the size of your family increased in 2020. The new stimulus plan includes a child tax credit that pays up to $3,600 for each qualifying child under 6 years old, and $3,000 for every child between ages 6 and 17. This means that if you became a parent during the tax year, you could get an additional payment by claiming your child as a dependent earlier.
SmartAssets child tax credit calculator will help you figure out how much you could get for each child.
You can use SmartAssets tax return calculator to figure out your 2021 tax refund or tax bill.
Could There Be A Third Stimulus Check In 2021 If A Second Payment Passes This Week
We share what we know so far about a second stimulus check for 2021.
For months, the nation has fixated on when a second stimulus check will bring more economic relief to families, and to a US economy that has been hammered by the COVID-19 pandemic. A $900 billion bipartisan COVID-19 rescue package appears to be days away from coming to a vote in Congress. But as its for less than half the overall funding commitment from the CARES Act in March, top US leaders have vowed to bring another broad-strokes stimulus bill to the forefront in early 2021. Would that include a third stimulus check?
Its a down payment, President-elect Joe Biden said on Dec. 16 of the current stimulus bill. An important down payment, on whats going to have to be done at the end of January and into February.
If Congress authorizes a $600 stimulus check in 2020 and a new, larger economic relief package follows in the early days of the Biden White House, is there a chance Americans could see a third stimulus check in 2021?
Below, we detail what we currently know about stimulus checks in 2021. This story is frequently updated with new information.
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How Much Was Each Stimulus Check
Each stimulus check ranged from $600 to $1,400 per adult and $500 to $1,400 per child.
Stimulus check eligibility: In order to receive the full amount of the payments, your adjusted gross income cannot be more than:
- $150,000 for a joint return,
- $112,500 for head of household
- $75,000 for single and other eligible individuals
What Could Cause Your Payment Group To Change
With the second round of stimulus payments, the IRS told CNET that people who received an EIP card or a physical check the first time would receive the second round via a different payment method.
Even though you don’t have a say in how you receive your payment, you can sign up for a direct deposit with the IRS when submitting your annual tax returns which may, in turn, work as a speeding up process for your stimulus payment. What could act as a delaying factor in receiving your stimulus check is if you are a part of the Social Security beneficiaries which could potentially delay and cause issues in receiving your check.
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A $600 Stimulus Check Could Pass In 2020 But Arrive In 2021
If another direct payment happens in 2020 as part of the COVID-19 bill, theres a good chance the IRS and US Treasury could send this second stimulus check to you faster this time. But theres also the very real possibility that many people wont receive their payment until 2021.
It all depends on exactly when the bill is approved, how quickly the IRS could act and a range of other factors that could make you first in line to receive another check or put you closer to the back of the line.
College Students And Young Adults Living At Home
Question: Will college students and young adults who live with their parents get a third stimulus check?
Answer: Anyone claimed as a dependent on someone else’s tax return won’t receive a third stimulus check. That means no payments to children living at home who are 17 or 18 years old, or to college students who are 23 or younger at the end of the year who don’t pay at least half of their own expenses.
However, unlike with the first- and second-round payments, the person claiming the college student or young adults as a dependent typically their parents will get an extra $1,400 per dependent tacked on to their third stimulus check. For the first two stimulus checks, the additional amount was only allowed for dependent children 16 years old or younger. But the American Rescue Plan allows the extra payment for any dependents regardless of their age.
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Who Qualifies For The Third Stimulus Check
Millions of Americans who were eligible for the $600 second stimulus checks could qualify for the third round of stimulus payments up to $1,400. However, many high-earning taxpayers who were eligible for previous stimulus checks are now excluded. The plan narrows income eligibility to exclude individuals earning over $80,000 and couples making over $160,000:
- Singles phase out at AGIs between $75,000 and $80,000.
- Heads of household phase out at AGIs between $112,500 and 120,000.
- Couples phase out at AGIs between $150,000 and $160,000.
Keep in mind that this is different from the sliding scale that was used to determine eligibility for previous stimulus payments. The IRS reduced second stimulus checks by 5% for the total amount made over the AGI limit. This means that payments went down by $5 for every $100 over the limit.
The table below breaks down third stimulus payments based on narrower income ranges for singles and joint tax filers:
|$1,400 Stimulus Checks With Narrower Income Ranges|
|$174,000 and up||$0|
If you want to get a specific breakdown, SmartAssets third stimulus check calculator will give you an estimate based on your filing status, AGI and dependents.
What If Both My Spouse And I Have Itins And Our Children Have Ssns Can Our Family Get The Third Stimulus Check For Our Children
Yes. For the third stimulus check, any household member that has an SSN qualifies for a payment.
This is different than the first and second stimulus check, where at least one tax filer must have an SSN for the household to claim the stimulus checks. That adult with the SSN and any qualifying children with SSNs will get the stimulus checks.
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More Third Stimulus Payment Money For Some In 2022
Parents who added a child in 2021 could be getting up to $1,400 after they file their 2021 taxes this coming spring thanks to the American Rescue Plan. The money won’t come as a direct check but will be part of the overall tax return.
The 2021 Economic Impact Payment — colloquially known as the third stimulus check — was actually an advance on what is called the 2021 Recovery Rebate Credit. What that means is that the $1,400 stimulus check most individual Americans received in 2021 is, in fact, money they would have gotten after filing their taxes in the spring of 2022 as a Recovery Rebate Credit.
In other words, millions of Americans already got part of their tax refund 12 months early.
“The bottom line is that’s money that’s going out almost immediately to millions of people as a tax credit in advance of putting it on a tax return in the next year,” said Raphael Tulino, IRS spokesman.
However, the IRS was going off of 2019 or 2020 tax returns for its information on the third EIP. It was using that information to determine if taxpayers would get stimulus money for their dependents. If eligible parents had a child born into their family in 2021, they can request the Recovery Rebate Credit on their taxes to get the payment for that child.
It gets more complicated with adoption because all the paperwork and processes to finalize the adoption must be completed first.
This does not pertain to the first or second stimulus payments that were paid in 2020.
Tips For Individuals During The Coronavirus Pandemic
- 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 you 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 you are struggling to keep up with loan or credit card payments, you can take steps to protect your credit score and speak with your bank directly to see whether you can defer loan payments or waive certain fees.
- If you can afford it, investing in index funds during a recession is a safe option. But if youre looking for a slightly more aggressive approach, check out some free investment classes to learn more.
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Stimulus Check Update: How Eligible Americans Can Claim Money In 2022
As the demand for a fourth stimulus check increases, there are some Americans who still havent received the third payment that was slated for 2021.
In March, millions of Americans received up to $1,400 in stimulus checks as a part of the $1.9 trillion American Rescue Plan. The IRS was tasked with sending out the payments and had until Dec. 31 to pay eligible Americans.
Now that the new year has arrived, there are still eligible Americans who havent been paid their stimulus check from the government. However, those eligible can still receive the payment by claiming the money on their 2021 tax return.
If youre eligible, youll need to file a 2021 tax return, even if you dont usually file a tax return, the IRS said in a statement.
Under the Recovery Rebate Credit, a person can list if they received stimulus money and those who were not paid can note how much their payment should have been.
Since tax returns from 2020 or 2019 were used to determine eligibility for stimulus checks in 2021, people who experienced a decrease in income could be owed more money.
Those who had babies in 2021 can also use the Recovery Rebate Credit Worksheet to claim their childs stimulus check and may also be eligible to receive the full tax credit if they havent been receiving the monthly advance payments that started in July.
News of eligible Americans without stimulus checks comes amid reports Boston Marathon bomber Dzhokhar Tsarnaev received a $1,400 payment.
You Lost Income In 2020 But Not Yet Filed A Return
Some people could also receive less than they are entitled to if their income dropped in 2020 but they haven’t yet filed their 2020 tax returns. This could happen for a single person who earned $90,000 in 2019, which is above the cutoff of $80,000 to receive a payment, but lost their job in 2020 and only earned $45,000 last year as a result.
If that person hasn’t filed their 2020 return yet, they won’t receive a stimulus payment because the IRS will base its calculation on their 2019 return, which showed they aren’t eligible. But as soon as they file their 2020 tax return with the lower income, the IRS will issue stimulus payment to them, IRS and Treasury officials said.
With reporting by Sarah Ewall-Wice.
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How Much Does The Third Stimulus Check Pay
The $1.9 trillion coronavirus relief plan includes a third round of $1,400 stimulus payments, topping off the $600 checks that were , and adding up to $2,000.
Congress passed the coronavirus relief plan with targeted income limits for maximum stimulus payments to individual taxpayers earning under $75,000 and joint filers making up to $150,000. But whereas the first and second rounds of stimulus payments phased out checks on a sliding scale of $5 for every $100 over the income limit, the new plan cuts off high earners at $80,000 for individuals and $160,000 for couples.
Eligibility for the third stimulus checks is based on your tax filing status. For more information on who qualifies for a third stimulus check, our tables below will help you calculate different payment options.
How Do I Get My Third Stimulus Check
You dont need to do anything if:
- You have filed a tax return for tax year 2019 or 2020.
- You are a Social Security recipient, including Social Security Disability Insurance , railroad retiree. Or you are a Supplemental Security Insurance and Veterans Affairs beneficiary.
- You successfully signed up for the first stimulus check online using the IRS Non-Filers tool or submitted a simplified tax return that has been processed by the IRS.
If you are missing your third stimulus check, file your 2020 tax return or use GetCTC.org if you dont have a filing requirement. By submitting your information to the IRS, you will be signed up and automatically sent the third stimulus check.
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