There’s A Strict Income Limit For The Third Stimulus Payment
The third stimulus check comes with a $1,400-per-person maximum. To “target” or restrict the third check to lower- and middle-income households, the legislation includes eligibility rules that exclude individuals and families at the highest income levels. An individual with an AGI of at least $80,000 a year would hit the payment cutoff, as would a head of household earning $120,000 and a couple filing jointly with an AGI of $160,000.
However, any dependent a taxpayer claims could qualify for a $1,400 payment. But unlike the first two stimulus payments, people above the hard upper limit wouldn’t be able to get a partial check by having dependents. Here’s how the stimulus check formula would work. If you want to see for yourself, try our stimulus calculator for the third check.
How To Resolve The Issue Of A Missing Stimulus Check
If you determine that your third stimulus payment was issued but you haven’t received it, or if your check hasn’t been issued yet and you need to get the process started, there are ways to resolve the issue. These include:
A payment trace with the IRS
If the IRS Get My Payment tool gives you a date that your check was issued and you still haven’t received it — or if you receive the confirmation from the IRS stating that your payment was sent — you may need to initiate a payment trace with the IRS.
You’ll need to call the IRS at 800-919-9835 to initiate the payment trace. You can also mail or fax a completed Form 3911, Taxpayer Statement Regarding Refund , to start the process.
Use the non-filer tool
If you haven’t filed a tax return in recent years, you may want to use the IRS non-filer sign-up tool that was recently created by the federal agency. This tool can be used for a number of reasons: if you didn’t file a 2019 or 2020 tax return, were not required to file a tax return, do not plan to file a tax return, or if you did not receive the full amount of the first or second stimulus payments.
The good part about using this tool is that it gets the ball rolling on both your missing stimulus payment and the Child Tax Credit money, which is going to be issued beginning next month to those who qualify.
File your 2020 tax return
Irs Has Sent $6 Billion In Stimulus Payments Just In June Here’s How To Track Your Money
Your stimulus check could be on its way, along with child tax credit money and unemployment tax refunds. We’ll explain the state of the payments today.
Stimulus check payments aren’t over yet for everyone.
Don’t think that the child tax credit payments going out in just over two weeks are all the IRS is focused on. The tax agency continues to send weekly batches of the third stimulus checks, with more than $6 billion in stimulus payments going out just in June. Some of that money includes “plus-up” adjustments for people who received less money than they were supposed to get in earlier checks.
Even though many of us got our stimulus money in the earlier batches in spring, some have had to wait weeks or months for their checks. The IRS sent money first to people who’d already filed their 2019 or 2020 tax returns because those were the easiest to verify. So if you’re still waiting for your stimulus check up to $1,400 — or think you might be due a plus-up payment — we’ll tell you what to do next.
In the meantime, many experts say a fourth stimulus check is unlikely, but millions of families will be getting a good chunk of money with July’s first child tax credit payment. We can tell you how to know if you qualify and how much money you could expect over the course of the year. The IRS is also issuing unemployment tax refunds to millions of people who received jobless benefits last year, though payments are taking longer than expected. This story was updated recently.
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How Will I Get My Check If I Havent Filed A 2019 Or 2020 Tax Return
If you receive Social Security or Railroad Retirement Benefits and did not file a tax return in 2019, you will not have to file a return in order to receive your paymentthe IRS has your information already.
If you dont receive those benefits and did not file a tax return for 2019 or 2020, you may need to file one to confirm your eligibility. Check your status in the Get My Payment portal for instructions.
Who Is Eligible For The Third Stimulus Check
While eligibility is similar to the first and second stimulus checks, there are differences. There are four primary requirements:
1. Income: The income requirements to receive the full payment are the same as the first and second stimulus checks. There is no minimum income needed to qualify for the payment. Households with adjusted gross income up to $75,000 for individuals will receive the full payment. The third stimulus payment starts to phaseout for people with higher earnings. The third stimulus checks maximum income limit is lower than the first and second stimulus check. Single filers who earned more than $80,000 in 2020 are ineligible for the third stimulus check.
View the chart below to compare income requirements for the first, second, and third stimulus checks.
|Income to Receive Full Stimulus Payment||First Stimulus Check Maximum Income Limit||Second Stimulus Check Maximum Income Limit||Third Stimulus Check Maximum Income Limit|
2. Social Security Number: This requirement is different from the first and second stimulus check.
Any family member that has a Social Security number or dependent can qualify for the third stimulus check. For example, in a household where both parents have ITINs, and their children have SSNs, the children qualify for stimulus checks, even though the parents dont.
See the chart below for further explanation of how this works.
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What If I Owe Child Support Payments Back Taxes Money To Creditors Or Debt Collectors Or Federal Or State Debt
None of the three stimulus checks can be reduced to pay any federal or state debts and back taxes. Unlike the first stimulus check, your second and third stimulus check cannot be reduced if you owe past-due child support payments.
|Federal or State Debt|
If you are claiming the payments as part of your 2020 tax refund , the payments are no longer protected from past-due child support payments, creditor and debt collectors, and other federal or state debt that you owe . In other words, if you receive your first or second stimulus checks as part of your tax refund instead of direct checks, it may be reduced.
You Don’t Usually File Tax Returns
Not everyone is required to file federal income taxes every year. For example, if someone brings in less than $12,400 a year, doesnt have additional self-employment income, is single and under age 65, they didn’t have to file a tax return for 2020.
But if you havent gotten yourself onto the IRS’ books recently, and youre not a Social Security or railroad retirement beneficiary, the tax agency wont have any record to show you’re eligible for a stimulus check.
You can use a reliable tax software program to get yourself on the IRS’ radar. When you’ve got money coming, thatts not a bad place to be.
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I Claimed An Adult Dependent On My 2019 Or 2020 Taxes But That Person Is No Longer My Dependent What Should I Do
Check with your dependent to find out if theyve already filed a tax return since their dependent status ended. They may have already received a stimulus payment of their own. If they have not filed their own tax return and you receive a larger payment that accounts for your former dependent, you dont need to return it.
Back Taxes Child Support And Other Debts
Question: Can the IRS or other creditors take my third stimulus check if I owe back taxes, child support or other debts?
Answer: Your third stimulus check is not subject to reduction or offset to pay child support, federal taxes, state income taxes, debts owed to federal agencies, or unemployment compensation debts.
However, the American Rescue Plan doesn’t include additional protections that were included in the legislation authorizing the second round of stimulus checks. For example, second-round stimulus checks weren’t subject to garnishment by creditors or debt collectors. They couldn’t be lost in bankruptcy proceedings, either. The IRS also had to encode direct deposit payments so that banks knew they couldn’t be garnished.
Question: Can a dead person get a third stimulus check?
Answer: For the third round of stimulus checks, anyone who died before January 1, 2021, is not eligible to receive a payment. Essentially, they’re treated as if they don’t have a Social Security number.
There is an exception for military personnel. If a person who died before 2021 was married and a member of the U.S. military, the surviving spouse can still receive a third stimulus check even if he or she doesn’t have a Social Security number.
The extra $1,400 per dependent is also off the table if the parent died before 2021 or, in the case of a joint return, both parents died before then.
Question: Will I receive a notice from the IRS about my payment?
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Taxation Of Third Stimulus Checks
Question: Will my third stimulus check be taxed later?
Answer: No. As with the first two rounds of payments, your third stimulus check is actually just an advanced payment of the Recovery Rebate tax credit for the 2021 tax year. As such, it won’t be included in your taxable income.
You also won’t be required to repay any stimulus check payment when filing your 2021 tax return even if your third stimulus check is greater than your 2021 credit. If your third stimulus check is less than your 2021 credit, you’ll get the difference when you file your 2021 return next year. So, it’s a win-win situation for you!
If You End Up Missing Money From Your Stimulus Payment Youll Need To Claim It Later
There are several reasons the IRS may owe you stimulus money after it sends out the third round of checks. Maybe the agency processed your 2019 tax return instead of 2020 and there was a discrepancy? Or maybe you had a baby in 2020 that you still need to claim as a dependent? Maybe a clerical error accidentally left out a new dependent? Perhaps your payment never arrived or was accidentally garnished?
Whatever the reason, the IRS may provide a way to file for missing stimulus money before the Dec. 31 deadline. If not, you might have to wait a year to claim it, when you file your 2021 taxes in 2022
Millions may wind up getting a smaller check than theyre owed, depending on their 2020 taxes.
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What If The Irs Sends The Incorrect Amount
The IRS has said that the third stimulus payments will be based on 2020 income. So if you receive a payment before the agency processes last year’s return but you qualify for more money based on your 2020 income, the agency will top off your stimulus payment at some point this year.
Taxpayers won’t have to do anything to get all of the money they are eligible for, except file their 2020 returns. If you qualify for less money in 2020, you will not owe any money back.
You Dont Qualify For A Stimulus Check Anymore
After already spending trillions of dollars on propping up the U.S. economy during COVID-19, Congress took a more measured approach when debating what should be included in this latest round of stimulus.
This time around, individuals making more than $80,000 and couples earning over $160,000 get bupkus. Eligibility is based on adjusted gross income, which is a household’s taxable income before subtracting the standard deduction or itemized deductions.
The previous thresholds for getting a stimulus check were $100,000 for single taxpayers and $200,000 for couples who file jointly.
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How Will I Get The Third Stimulus Check
Most will arrive via direct deposit others will be mailed as a paper check or a prepaid debit card.
Exactly how much money you get and how it’s delivered depends on the information provided on your 2020 tax return. If it hasn’t been filed or processed yet, the IRS will look at your 2019 return.
In most cases, your payment will be delivered to the bank account or mailing address that’s listed on your tax return. If you used the nonfilers tool because you don’t file taxes, the IRS will use that same information to deliver your third payment, either to your bank account or address.
Social Security retirement and disability beneficiaries, railroad retirees, and people who received veterans’ benefits in 2020 don’t need to do anything to get the third stimulus check. They will get their payment the same way they normally receive benefits.
The IRS’s “Get My Payment” tool is the only place to check how and when your payment is going to be sent .
Useful Information & Links
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– Final monthly CTC payment of 2021 sent out on Wednesday 15 December
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–What’s the deadline to get your stimulus check plus-up payment in 2021?
Claiming the $1,400 stimulus check
Families that either had a newborn or adopted a child in 2021 will be able to claim the amount of the third Economic Impact Payment they are due through the 2021 Recovery Rebate Credit. This goes for all taxpayers who didnt get the full amount due to them from the direct payment scheme.
Youll want to check any documentation that the IRS sent regarding the EIP3 or plus-up payments received. If you lost the letter that the agency sent, through the IRS website you should be able to find the information in your federal tax account. If you try to claim more of the credit than you are due, it could delay processing of your tax return and thus your refund if you have one coming.
Taxpayers that are still missing the first two Economic Impact Payments will need to file a 2020 1040 to claim the 2020 Recovery Rebate Credit
World stock prices gain on strong US holiday sales
He added that next year markets must also contend with other issues, ranging from inflationary pressures to policy tightening and geopolitical risks.
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Other Reasons For Delay
Getting the virus under control will be President Bidens number one priority once he is in office. While its important to help Americans who have been hurt financially by the pandemic, there will likely be other COVID-related health measures he wants to take first. If that means shifting the focus to economic relief and stimulus in particular that could slow down third-round payments.
Congress will also have a lot on its plate. Democrats want bold change soon on several fronts. But their agenda could be held up by impeachment proceedings against former President Trump in the Senate. Time spent on deposition means time away from economic relief and thus away from stimulus controls.
Some Democrats have suggested waiting a few months before sending the articles of impeachment to the Senate for consideration. That tactic would minimize delays in economic aid and other priorities by letting the Senate settle other matters before tackling the thorny issue of impeachment.
And lets not forget that the Senate will also have to confirm Bidens appointees in his cabinet and other political offices. This too can take time from dealing with stimulus checks and other economic matters.
Your Bank Is Holding Up Your Payment
In at least some cases, the IRS is apparently “future dating” the payments, similar to the way a consumer might post-date a check. And, your bank may not make your stimulus check money available to you until the tax agency’s official payment date.
That was the case for customers of JPMorgan Chase and Wells Fargo, who didn’t receive the cash in their accounts until days after it was distributed. The banks said they were observing the IRS “effective date” for the payments, but some people threatened to close their accounts in protest.
Speculation is heating up over whether there will be a fourth stimulus check, but don’t count on it. So use your $1,400 wisely maybe by putting it to work using one of today’s popular investing apps.
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Residents Of Certain States
Eligible residents of specific states could also be on track for another payment in December. Maine, California, Maryland, and Florida are all planning on sending money to some people next month.
- Maine will be distributing $285 payments to half-a-million households, including eligible individuals with an adjusted gross income below $75,000 for single tax filers and $150,000 for married joint filers. These payments started going out on Nov. 15 and will continue into December.
- California is sending payments valued at $500 to $1,100 under the Golden State Stimulus II Program. These payments could be available for eligible individuals with incomes under $75,000 who were residents of the state for more than half of 2020 and who are still residents at the time the payment is issued.
- Florida will be distributing stimulus payments in December for first responders and educators who work with students in Pre-K through 12th grade. Around 175,000 teachers and 3,600 principals are eligible for payments of up to $1,000.
If you live in one of these states, you should check the specific eligibility rules for your location to see if you are one of the many Americans who will be getting additional stimulus funds during the last month of 2021.