Income Limits For Third Stimulus Check


Who Qualifies For The Third Stimulus Check

Third stimulus update: Democrats agree to income cap on $1,400 checks

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
Single AGI
$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.

Are There New Income Limits To Get A Check

Congress is still negotiating the bill, with the Senate set to take up Mr. Biden’s $1.9 trillion coronavirus relief bill as early as Wednesday. Since the bill is not expected to attract many, or even any, Republican votes, all Democrats will need to support the bill in order for it to pass, giving moderate Democrats like Manchin leverage to make demands of the president and Senate leadership.

That explains why Mr. Biden would be willing to lower the income phaseout. But because the Senate version of the bill is likely to differ from the House version, which was passed last week, the legislation will have to go back to the House for another vote.

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?

Don’t Miss: File Taxes To Get Stimulus

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.

How Are Married Couples Affected If Only One Spouse Has A Social Security Number

Stimulus Check 3 Qualifications Income

As with EIP2, joint filers where only one spouse has a Social Security number will normally get the third payment. This means that these families will now get a payment covering any family member who has a work-eligible SSN.

For taxpayers who file jointly with their spouse and only one individual has a valid SSN, the spouse with a valid SSN will receive up to a $1,400 third payment and up to $1,400 for each qualifying dependent claimed on the 2020 tax return.

Active Military: If either spouse is an active member of the U.S. Armed Forces at any time during the taxable year, only one spouse needs to have a valid SSN for the couple to receive up to $2,800 for themselves in the third stimulus payment.

Also Check: Stimulus Check For Healthcare Workers

What If My Bank Account Information Changed How Will I Get My Second Stimulus Check

Unfortunately, if your second stimulus check is sent to an account that is closed or no longer active, the IRS will not reissue the payment to you by mail. Instead, if you are eligible to get a payment, you can claim the stimulus check on your 2020 tax return as the Recovery Rebate Credit or use if you dont have a filing requirement.

Dont Miss: Stimulus Check In May 2021

Where Is My Third Stimulus Check

You can track the status of your third stimulus check by using the IRS Get My Payment tool, available in English and Spanish. You can see whether your third stimulus check has been issued and whether your payment type is direct deposit or mail.

When you use the IRS Get My Payment tool, you will get one of the following messages:

Payment Status, which means:

  • A payment has been processed. You will be shown a payment date and whether the payment type is direct deposit or mail or
  • Youre eligible, but a payment has not been processed and a payment date is not available.

Payment Status Not Available, which means:

  • Your payment has not been processed or
  • Youre not eligible for a payment.

Need More Information, which means:

  • Your payment was returned to the IRS because the post office was unable to deliver it. If this message is displayed, you will have a chance to enter your banking information and receive your payment as a direct deposit. Otherwise, you will need to update your address before the IRS can send you your payment.

Recommended Reading: Small Business Stimulus Package 2021

Who’s Out Of Luck This Time

Under the phaseout scheme for the third stimulus checks, partial payments will be doled out to individual earners making up to $100,000, heads of household with incomes over $150,000, and couples who file jointly and earn more than $200,000. Americans above those income levels won’t receive any money this time.

How do you make sure your family gets the maximum money? If your household income dropped in 2020, you’ll want to log in to a good tax software product and get your return filed immediately so the IRS can take your reduced income into consideration.

If it looks like you won’t receive a full $1,400 check or any money at all there are a couple of things you can do:

  • Trim your budget and “make your own” stimulus check. By finding a few creative ways to cut back, you can possibly wring another $1,400 out of your current budget. For example, maybe its time to dump streaming services or other monthly subscriptions youre not actively using. And, download a free browser extension that will do all the work for you to find the best prices and coupons whenever you shop online.

  • Turn your busy work into your business. Have a hobby or special skill? Turn it into a side hustle to bring in extra income. Set up a profile on an online marketplace for freelancers and turn your talents into capital.

What Are The Income Limitations For Each Filing Status

Third stimulus check update: Full $1,400 may be limited to $50,000 income

Eligible individuals will receive an Economic Impact Payment of $1,200, or $2,400 if married filing jointly, with an adjusted gross income up to:

  • $75,000 for individuals if filing as single or married filing separately
  • $112,500 if filing as head of household and
  • $150,000 if filing married filing jointly

An individuals payment is reduced by 5% of the excess of the individuals AGI over the applicable threshold.

Eligible individuals will receive a reduced payment if their AGI is more than:

  • $75,000 if filing as single or married filing separately
  • $112,500 if filing as head of household and
  • $150,000 if filing married filing jointly

For eligible individuals with no qualifying children, the payment is reduced to $0 if their AGI is at least:

  • $99,000 if filing as single or married filing separately
  • $136,500 if filing as head of household and
  • $198,000 if filing married filing jointly

For individuals with qualifying children, these total-phaseout amounts increase by $10,000 for each qualifying child. For example, for an eligible individual filing as married filing separately with 3 qualifying children, the individuals payment is reduced to $0 if his or her AGI is $129,000 or more.

Recommended Reading: How Can I Get My Stimulus Checks I Never Received

Eligibility Guidelines Have Expanded For This Check

While the hard income cap will disqualify millions, the third stimulus check also extends qualifications to dependents of any age. That includes college students, older adult relatives and dependents of all ages with disabilities — not just those under 17 years old.

The second change to eligibility includes all “mixed-status households” with one or more family members who aren’t US citizens. An example would be parents who aren’t US citizens, but their US-born children are. The second stimulus checks made families with one US-citizen spouse eligible. However, people who are nonresident aliens won’t qualify for a stimulus check in the third round.

Who Is Eligible To Receive The Third Stimulus Payment

When it comes to eligibility, the estimates indicate that millions of Americans can expect to qualify for the third round of stimulus payments. Those that are eligible could potentially receive up to $1,400. However, a caveat of the new stimulus plan is that theres been a slight tweak in the eligibility criteria.

Several high-earning taxpayers arent going to be excluded from the stimulus checks despite being eligible in the previous round. Individuals that earn over $80,000 and joint tax filers that make over $160,000 will not receive any stimulus payment.

For individual taxpayers, the phase-out begins from $75,000 and ends at $80,000. The head of household phase-out starts at $112,500 and ends at $120,000. While for couples, the phase begins at $150,000 and ends at $160,000.

Its the same principle but is slightly different from the sliding scale used in previous rounds of payment. During the last rounds of payments, the IRS would reduce the stimulus payment by 5% of the total amount made over the AGI limit. In basic terms, that means the payments went down $5 for every $100 above the limit.

Heres a breakdown of the current stimulus payment structure

Also Check: I Didn’t Receive My Third Stimulus Check

The 2021 Stimulus Payment

On March 11, 2021, the American Rescue Plan was signed into law. It called for sending a third round of stimulus checks to Americans. The American Rescue Plan authorized a $1,400 stimulus payment to eligible people. Learn more about it on the IRS website. Most people already received their payments, which were based on income reported on their 2019 or 2020 tax return.

If you believe you did not get all or part of the $1,400 stimulus from the American Rescue Plan of 2021, you should claim this as a recovery rebate credit on your 2021 tax returnLearn where to get help filing your taxes.

You May Like: How To Fill Out Non Filers Form For Stimulus Check

No Stimulus Check Yet Heres What To Expect

Update On Stimulus Checks For Ssi Recipients

Whether youre checking your account balance or checking your mailbox, waiting for an expected stimulus payment can be frustrating. We help you figure out if a payment might still be on its way, and what you can do to claim any credit due to you.

Katie J. SkipperBECU Community Content Manager Apr 20, 2021 in:COVID-19

Federal stimulus payments have brought a little financial relief to millions of Americans during the COVID-19 pandemic, but some are still waiting to receive their first and second payments while others have already received their third.

Requirements changed with each round, and, if your own financial situation changed, it can be tough to figure out how much of a payment you’ll get and when you’ll get it.

We looked into the details to answer some common questions.

I got the first stimulus payment. Shouldn’t I get the other two or at least part of them?

Just because you received the first round of stimulus payments doesn’t mean you’re a shoo-in for rounds two and three.

The income limits for the maximum stimulus payment were the same in all three rounds. To receive the maximum payment , your adjusted gross income couldn’t exceed:

  • $150,000 if married and filing jointly with your spouse
  • $112,500 if filing as head of household
  • $75,000 for eligible individuals using any filing status

Payments phased out at lower amounts with each round. If you earned more than these amounts, you didn’t qualify for a partial payment:

How does the IRS figure out how much to pay?

Don’t Miss: How Do I Apply For The 4th Stimulus Check

How The Irs Calculates The Third Stimulus

The Internal Revenue Service will use information, including your income, from your 2019 return to calculate the next Economic Impact Payment, if your 2020 tax return isn’t filed and processed by the time the IRS starts issuing the third stimulus payments.

The third stimulus payment is based on such things as whether you’re filing single or married filing a joint return, how many dependents you have, and your adjusted gross income.

The latest goal is to better target the COVID-19 relief cash to households that may need the money the most, including families that have been unable to receive unemployment or other benefits and have experienced a financial hardship during the pandemic.

Under the latest program, additional payments could go to all dependents, not just children 16 and younger. As part of the third stimulus, all dependents regardless of age qualify for up to an extra $1,400. As a result, college students age 23 or younger could qualify, or so could elderly parents living with you, according to the measure that passed the Senate on Saturday.

Who May Still Be Eligible For More Money

There may be people who are eligible for the full $1,400 payments, or additional partial payments, particularly if their circumstances have changed.

Parents who added a child to their family in 2021 may be eligible for a $1,400 payment. Additionally, families who added a dependent to their family in 2021, such as a parent, niece or nephew or grandchild, may also be eligible for $1,400 on their behalf.

Additionally, people whose incomes have fallen may now be eligible for the money if their 2021 adjusted gross incomes are below the thresholds for full payments. If their incomes are in the phase-out thresholds, they could be eligible for partial payments.

People who do not typically file tax returns, and have not yet done so, need to file this year in order to receive the any potential payments.

The Recovery Rebate Credit money for which you are eligible will either reduce the amount of federal taxes you owe or be included in your refund.

Recommended Reading: Any More Stimulus Money Coming

Don’t Miss: Social Security Recipients Stimulus Checks

I Receive Social Security Retirement Disability Survivors Ssi Or Veterans Benefits Do I Automatically Qualify For An Economic Impact Payment

In some cases, if you receive certain benefits, you will automatically receive an Economic Impact Payment. Make sure you read further to know if this applies to you and to know if you need to send the IRS any additional information, and how you will be receiving your payment.

The IRS is working to make it easier for certain beneficiaries to receive the Economic Impact Payment by using information from benefit programs to automatically send payment.

You will qualify for this automatic payment only if:

  • You were not required to file taxes in 2018 or 2019 because you had limited income and
  • You receive one of the following benefits:
  • Social Security retirement, survivors, or disability from the Social Security Administration
  • Supplemental Security Income from the Social Security Administration
  • Railroad Retirement and Survivors from the U.S. Railroad Retirement Board
  • Veterans disability compensation, pension, or survivor benefits from the Department of Veterans Affairs

If you qualify for an automatic payment, you will receive $1200 . You will receive this automatically the same way you receive your benefits, either by direct deposit or by check. You will not need to take any further action to receive this.

No matter how you receive your payment, the IRS will send you a letter in the mail to the most current address they have on file about 15 days after they send your payment to let you know what to do if you have any issues, and contact information for any questions.

Share post:



More like this

How Are Stimulus Checks Distributed

When You'll...

Nc $500 Stimulus Check Update

Dont Wait...

Who Gets The Stimulus Checks

Will Social...

4th Stimulus Check For Ssdi

Where Is...