The much-awaited "Stimulus Check 3" has been a hot topic of discussion since the onset of the COVID-19 pandemic. As the situation continues to evolve, so does the status of the third round of economic impact payments. This article aims to provide an up-to-date, comprehensive, and simple-to-understand overview of the current status of "Stimulus Check 3" without the fluff or jargon.
Under the American Rescue Plan Act, which was signed into law by President Joe Biden on March 11, 2021, a third round of stimulus checks was authorized. These payments, also known as Economic Impact Payments (EIPs), are designed to provide financial relief to millions of Americans amidst the continued economic fallout from the pandemic.
Eligibility and Amount Overview
The eligibility criteria and payment amounts for the third round of stimulus checks are different from previous rounds. This round provides direct payments of up to $1,400 for qualifying individuals, with amounts phased out for those with higher incomes.
The eligibility rules are based on income thresholds. For single filers, the full amount is lowered starting at $75,000 and is completely phased out at $80,000. For heads of households, the full amount is phased out between $112,500 and $120,000, and for married couples filing jointly, it's phased out between $150,000 and $160,000.
Eligibility Based on Income
The income limits for eligibility are based on your adjusted gross income (AGI) shown on your latest federal income tax return. For individuals who have not yet filed for 2020, income limits are based on the 2019 return.
For those who are students, disabled, or seniors living on Social Security, eligibility is determined based on the same income limits, irrespective of whether they are claimed as dependents on someone else's return.
Eligibility for Dependents
A significant change in this round is the inclusion of eligible dependents, including adult dependents and children over the age of 16. They will receive $1,400 each. The IRS will use the most recent tax return available when determining eligibility for dependents.
If you aren't typically required to file a tax return, you may still be eligible to receive a payment. The IRS has a non-filer tool on its website to help with this.
Stimulus Check 3 Payment Status and Timeline
The IRS started distributing the third round of stimulus checks in March 2021. The payment method, whether direct deposit or mailed check or debit card, is determined by the IRS based on the most recent tax return information on file.
To get the most up-to-date information on the status of your payment, the IRS has launched a "Get My Payment" tool. This tool provides the payment date, the payment method, and if scheduled, a payment date range for direct deposit or check.
Payment Tracking: Direct Deposit vs. Mail
For those who have provided their bank account information on their tax return, the IRS will direct deposit the stimulus check into their account. The "Get My Payment" tool will display the payment date within one to two days of the deposit.
Those who have not provided their bank account information or whose account information is invalid will receive a check in the mail. The tool will show a payment date range for the check, typically 7-14 days apart.
The "Plus-2021" And Missing Checks
If you qualification status has changed due to the addition of an eligible dependent in 2020, you may be owed an additional $1,400 for that dependent. This is known as the "plus-2021." The IRS will automatically issue these payments, and you do not need to take any action unless you receive a letter from the IRS asking for more information.
If you believe you should have received a stimulus check or an additional amount, but it hasn't been issued yet, you may need to file a tax return or wait for the IRS to issue a letter asking for more information. It's important to note that the IRS is processing a high volume of payments and may take time to address these situations.
In this time of uncertainty, it is crucial to stay informed and up-to-date with the latest information regarding the "Stimulus Check 3" status. The IRS website and the "Get My Payment" tool are excellent resources to check regularly for updates. As always, if you have questions or concerns, it may be best to consult with a trusted tax professional.