Who Qualifies For The Third Stimulus Check

Can My Third Stimulus Check Be Garnished For Unpaid Debt Or Taxes

These payments are protected from all federal and state offset. That means you’ll get the full amount you qualify for even if you have past-due federal or state debt, such as child support, or you owe taxes from previous years.

But, because Congress used a process called “budget reconciliation” to pass this stimulus bill which only allows certain types of legislation to pass through Congress private collectors will have the right to garnish stimulus check money that lands in your bank account to cover unpaid debts. This is different from the previous $600 stimulus check, which had protections against garnishment.

Several consumer and banking trade groups signed a letter to Congress pushing for legislation to protect the new stimulus check funds from garnishment.

“We believe it is imperative that Congress ensure that these next stimulus payments are treated as ‘benefits’ subject to the federal exemption from garnishment,” the groups wrote. “Otherwise, the families that most need this money those struggling with debt and whose entire bank accounts may be frozen by garnishment orders will be not be able to access their funds.”

People Who The Irs Doesn’t Know About

The IRS will automatically send a third stimulus payment to people who filed a 2019 or 2020 federal income tax return. People who receive Social Security, Supplemental Security Income, Railroad Retirement benefits, or veterans benefits will receive a third payment automatically, too. However, if the IRS can’t get the information it needs from your tax records, or from the Social Security Administration, Railroad Retirement Board, or Veterans Administration, then it can’t send you a check.

However, if you don’t get a third stimulus check now, you won’t lose out on the money if you’re eligible for a payment but you’ll have to wait until next year to get it. You’ll be able to claim the proper amount as a Recovery Rebate tax credit when you file your 2021 tax return, which is due by April 18, 2022 .

When Will Stimulus Payments Be Sent

Your stimulus payment may already be on its wayor you may have already received it. On March 12, the IRS announced that the $1,400 stimulus check will reach Americans within the week.

The first payments were sent by direct deposit and were scheduled to arrive on March 17. The IRS will continue to send additional batches of direct deposits, as well as mailing checks and debit cards, over the next several weeks.

Recommended Reading: What Does The Stimulus Bill Include

Do I Have To File 2020 Taxes To Get The Third Stimulus Check

No. The Treasury can use 2019 or 2020 tax returns to determine your payment.

It will also send payments to people who dont file taxes, but who either used the IRS nonfilers tool last year to submit information or receive federal benefits such as Social Security retirement or disability and Supplemental Security Income.

However, if you qualify for more money based on your 2020 income or need to claim additional dependents, you will need to file a 2020 tax return so the IRS can top off your payment.

Dont Forget: Us Citizens Living Abroad Are Also Eligible For A Stimulus Check

U.S. citizens who live abroad are still eligible for a stimulus check as long as they meet the income thresholds and other qualifying criteria.

Those individuals will receive their payment the same way they received their previous stimulus checks it will either be a direct deposit into the bank account on file with the IRS, or sent as a paper check to the address listed on your 2019 tax return, if you havent yet filed for 2020.

If you didnt receive your first two stimulus checks, you may be able to claim them when you file your 2020 taxes this spring by claiming the Recovery Rebate Credit with Form 1040 or 1040-SR.

Read Also: Who Eligible For Second Stimulus Check

Heads Of Households: If Your Agi Is Over $120000 Or More Youre Not Eligible

Similar to the single-taxpayer cutoff, heads of household with an AGI of $120,000 or more are excluded under the new bill. To get a partial stimulus payment, youd need to make between $112,500 and $120,000. But to get the full amount, youd need to make less than $112,500 if youre the head of household.

Determining Eligibility For The Third Economic Impact Payment

Most eligible people will get the third Economic Impact Payment automatically and won’t need to take additional action. The IRS will use available information to determine eligibility and issue the third payment to eligible people who:

• Filed a 2020 tax return.
• Filed a 2019 tax return if the 2020 return has not been submitted or processed yet.
• Did not file a 2020 or 2019 tax return but registered for the first Economic Impact Payment using the special Non-Filers portal last year.
• Are federal benefit recipients as of December 31, 2020, who do not usually file a tax return and received Social Security and Railroad Retirement Board benefits, Supplemental Security Income and Veteran benefit recipients in 2020. The IRS is working with these agencies to get updated information for 2021 to assist with stimulus payments at a date to be determined. IRS.gov will have more details.

Recommended Reading: Can You Get A Stimulus Check At 18

Special Reminder For Those Who Dont Normally File A Tax Return

People who dont normally file a tax return and dont receive federal benefits may qualify for stimulus payments. This includes those without a permanent address, an income or bank account.

If youre eligible and didnt 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 youll need to file a tax return.

When Will You Get The Third Stimulus Check

Officials at the Treasury Department and Internal Revenue Service said Friday that processing of the new round of stimulus payments has already begun, with the aim of having the first payments start showing up in bank accounts this weekend.

The IRS said Friday that additional waves of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card. The agency added that contacting the IRS or your financial institutions wont get you your check any sooner.

A date has yet to be set for when those receiving Social Security and other federal beneficiaries will get their money. Though the IRS said those Americans will generally receive the third payment the same way as their regular benefits.

Also Check: Wells Fargo Stimulus Check Not Pending

Also Check: How Much Are We Getting For The Third Stimulus Check

When Will The Third Stimulus Check Be Issued

The government started sending the third stimulus checks on March 12, 2021. The IRS continues to send third stimulus checks as people submit their information to the IRS either by filing a 2020 tax return or using GetCTC.org. The deadline to use GetCTC.org is November 15, 2021.

If you have your banking information on file, the IRS sent your payment via direct deposit. Otherwise, you will receive your payment as a check or debit card via mail. Mailed checks and debit cards may take longer to deliver.

If you dont fall into any of these categories, youll have to wait to receive your third stimulus check. You will need to file a 2020 federal tax return to get the third stimulus check or use GetCTC.org if you dont have a filing requirement.

You can also get the first and second stimulus check as the Recovery Rebate Credit on your tax return or GetCTC.org if you are eligible.

Stimulus Checks: No Taxable Income Or Address

Q. Im a single person that has a valid SSN, but I do not file a tax return because I do not have any taxable income. What should I do if I didnt receive any stimulus money?

A. For the first two rounds of economic impact payments, the taxpayer will need to file a 2020 tax return with the IRS and claim the recovery rebate credit. Eligible taxpayers who did not receive the maximum amount of advance payments and taxpayers who missed receiving the first or second stimulus payments altogether can claim a credit on their tax return for the amount they qualified for but did not receive as an advance payment. For example, a single taxpayer who was eligible for but did not receive either economic impact payment would be eligible to claim a recovery rebate credit in the amount of $1,800 .

If this same eligible taxpayer did not receive the third economic impact payment, they should receive that from the IRS after their 2020 tax return is processed. Once the IRS processes the taxpayers 2020 tax return, the IRS will use the information from the 2020 tax return to determine eligibility for the third round of payments. In this case, if the IRS determines the taxpayer is eligible for the full third economic impact payment and no payment has been made to that taxpayer, the IRS will issue an additional $1,400 to that individual. The FAQs available on this IRS webpage help explain the process someone should follow in this situation to complete their tax return.

Also Check: I Didnt Get My Stimulus Check

Are Adult Dependents Getting Third Stimulus Checks

The new stimulus plan expands eligibility to adult dependents, including college students, elderly relatives and disabled adults.

The text of the plan redefines the term dependent according to section 152 of the tax code, which includes both qualifying children and adults: Section 152 provides that the term dependent means a qualifying child ) or a qualifying relative ).

While the plan pays out $1,400 for each qualifying dependent, families should keep in mind that the targeted lower income ranges exclude them if they earn over $160,000.

For reference, the second stimulus checks provided additional $600 payments for qualifying dependents under the age of 17. So a couple filing jointly with three eligible children could get a maximum second payment of $3,000 .

Under the first and second rounds of stimulus checks, children and adult dependents over the age limit could not get an additional payment, and they did not qualify for a stimulus check of their own either.

With the new stimulus plan, however, both joint filers and heads of household get an additional $1,400 payment for each dependent, regardless of age. The table below breaks down the third stimulus checks for heads of household with one dependent:

Will The Irs Tax My Third Stimulus Check

The IRS does not consider stimulus checks to be taxable income. This means that you do not have to report the money on your federal income tax return, or pay income taxes on your stimulus check.

You should also note, that if you owe taxes, you could still qualify to get a stimulus payment because the IRS does not use it to offset federal or state tax debts like it normally does with tax refunds.

For private debts, however, the American Bankers Association has pointed out a loophole in the new stimulus plan where banks and other financial services providers will be legally required to comply with court ordered garnishments. The association says that without legislation to shield your third stimulus payment, creditors or collectors can take it to pay off existing debt.

As a reference, the 2020 COVID-Related Tax Relief Act did shield stimulus payments from private debt collection: The Advance payments are generally not subject to administrative offset for past due federal or state debts. In addition, the payments are protected from bank garnishment or levy by private creditors or debt collectors.

But while your stimulus money could be taken to pay for private debt, the new offsetting rules prevent the IRS from deducting overdue child support from eligible recipients. You should keep in mind, however, that the IRS intercepted or reduced payment from the first round of stimulus checks for past-due child support.

Recommended Reading: When Will The Second Stimulus Check Be Released

What Dependents Qualify For The Third Stimulus Check

The American Rescue Plan expands the definition of a dependent to anyone who meets the IRS definition of a dependent on your taxes. So this means if you filed your taxes and claimed a dependentwhether a child or an adultand met the income limits for a payment, your dependent will also qualify for a payment.

Child dependents must be:

• Under 19, or under 24 if that child is a student,
• Or considered permanently and totally disabled

And must:

• Have a valid social security number or an adoption taxpayer identification number included on your tax return,
• And not be claimed as a dependent by anyone else in the qualifying tax year

In cases of split households, the parent or guardian who claimed the child in the tax return on file when the IRS processes your stimulus check will receive the stimulus payment for that child.

• Make less than the gross income requirement, which is $4,300 for 2020, excluding Social Security benefits and tax-exempt income such as services performed by individuals with disabilities at a sheltered workshop
• Receive at least half their total support from you
• Have their SSN included on your tax return
• Not be claimed by anyone else other than you in the qualifying tax year

Note: If you have a baby or adopt a child after you receive your stimulus check, you will be able to claim them as a dependent on your 2021 taxes for the $1,400 tax credit.

Will Ssi Get A Fourth Stimulus Check

While it does not include a stimulus check for those on Social Security it does include some benefits for seniors. These include the expansion of Medicare to include hearing services, and provisions that will grant the government power to negotiate a limited about of drug prices with pharmaceutical companies each year.

You May Like: 3rd Stimulus Check Status Irs

What Is A Plus

A plus-up payment is basically just a bonus amount that you probably should have gotten the first time. The IRS actually owes more money to some people based on their most recent tax returns. If they used your 2019 tax information to dish out your stimulus payment but your 2020 taxes show they underpaid youyou might be in for a plus-up payment based on your income. But remember, this isnt for everyoneonly those who had a change in income or dependents would qualify for more stimulus money.

What Should You Do With Your Third Stimulus Check

Lets be real: Three stimulus checks in a year is not normal. This third payment can go a long way to help you catch up on bills, pay off debt, or build up your savings. And for a lot of folks, those stimulus checks have kept food on the table. In our State of Personal Finance study, we found that 41% of people who got a stimulus check used it to pay for necessities like food and bills.

So, based on your situation, heres where you start:

If youre out of work or missing a paycheck, use this stimulus money to protect your Four Walls:

Focus on the necessities so you can have peace of mind as you keep looking for work or get your income back up. That means if youre working the Baby Steps and youre out of work, pause your plan for now. Pile up cash until you have a steady income again. Then you can attack your debt. Theres nothing like fighting through a financial crisis to light your fire to be debt-free as soon as possible!

On the other hand, if your job is safe and you feel like itll stay that way, use your stimulus money to build momentum on whatever Baby Step youre on. Put your debt snowball into overdrive. Knock out your fully funded emergency fund . Or talk to your investment professional about giving your retirement a big boost !

You May Like: Is A Third Stimulus Check Coming

How To Return A Paper Check You Have Not Cashed Or Deposited

If youre one of those folks who has to send the money backand you havent cashed or deposited your check yetheres what you need to do:

• Write Void in the endorsement section of the check, but dont fold or staple itdont even put a paper clip on it.
• On a sticky note or sheet of paper, write down the reason youre sending the check back.
• Mail the check and the explanation back to your local IRS office .

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.

Also Check: When Is The Third Stimulus Check Coming Out

What If I Never Got Letter 6475

If you never got a third stimulus check, you won’t receive Letter 6475. Instead, you’ll need to create an IRS online account to view the amount of your Economic Impact Payments. If you were eligible for payments and didn’t get them, you can get those funds by claiming the recovery rebate tax credit on your 2021 tax return.