10 important things to know about the third stimulus payment: Direct deposit schedule, IRS calculations, moreMarch 16, 2021
The newhave been hitting across the country. The IRS and US Treasury started Friday, March 12. But that’s just the part of the news.
There’s still so much to unpack with these new payments. For starters, the significant changes that were made to, as well as how much money individuals, families and could get. The new bill also made adjustments to . And with the IRS is making payments during , your taxes also play a big role in determining whether you’ll get a payment and when.
This is what we know, now that the IRS is sending out payments, including how the total for your family could offer. For more on , here’s guidance on how to , what we know about and how to . This story is frequently updated.
Stimulus checks are on the way now
Yes, right now. The Treasury announced it started making payments on March 12, with more continuing to go out this week and into the coming weeks, by and through the mail as or .
When your payment may arrive is a bit more complicated. However, we’ve mapped out some possibilities for— and how long delivery of the checks could last.
There’s an income limit for the third stimulus check
Thecomes with a $1,400-per-person maximum. To 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 (adjusted gross income) 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. 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 . If you want to see for yourself, try our .
Stimulus check income limits
|Full $1,400 per person maximum (based on AGI)||Not eligible (based on AGI)|
|Single taxpayer||Less than $75,000||$80,000 or more|
|Head of household||Less than $112,500||$120,000 or more|
|Married couple filing jointly||Less than $150,000||$160,000 or more|
More dependents will get a stimulus payment this time
The new stimulus bill opens the qualifications to roughly 13.5 million more dependents for a — for — than the first two payments did by expanding the definition of a dependent. With the new check, any dependent — child or adult — . With the , Congress included children age 16 and under but excluded dependents 17 and older.
Some people won’t qualify for the check at all
The strict income cap Congress has set formeans you could quickly be or the House and Senate agreed to. We explore that 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 .
The third check could still have some delays
The IRS is now sending out the checks. But the agency has a full plate: We’re in, with an April 15 deadline for taxpayers to submit their returns. It’s a full-time job for the IRS to process refund payments, even without being stretched by the ongoing pandemic, a backlog from 2019’s taxes and the job of processing this new round of stimulus payments — — and implementing other pieces of the new relief bill, including .
Here’s what to know about. Read more below for which tax year the IRS will use for you.
How to know if the IRS will use your 2019 or 2020 tax returns to calculate the payment
Tax season and the timing of aoverlap. What that means is that the IRS will base your total on (or even earlier), whichever it has on hand when it determines the size of your payment. If you based on , but your check total was lower because the IRS based it on your 2019 taxes, possibly when you file in 2022, if not sooner.
Here’s how your check could be affected if you, and what would happen (this doesn’t appear likely).
The IRS’ time frame for sending out your payment
The IRS and the Department of the Treasury took just days to, starting shortly after former President Donald Trump signed . They had no choice: The language of the bill provided only a 17-day window to send the checks. There were , and now will have to . (Yes, .)
This time, the IRS will have until Dec. 31, 2021, to automatically send a third check to recipients, with taxpayers andclaiming any missing money as a in 2022. Here are , for every payment group.
What you can do now to get your payment faster
Yourare tightly intertwined. There are some important things to know about how your taxes can affect whether you’d qualify for a third stimulus check, depending on both the and your 2020 . But taxes are now also tied to any from the first two checks that you or . Some members of Congress have asked the IRS to , but we haven’t heard more on this publicly from the IRS.
If you file your taxes sooner, you can get athan if you, for example, file a tax extension. We also recommend setting up to get a catch-up payment faster — and potentially get a faster, too. If you know.
Qualifications for a payment are expanding this time around
While the hard income cap will, the third stimulus check also extends qualifications to . That includes college students, and dependents of all ages with disabilities — not just those under 17 years old.
The second change to eligibility includes all “nonresident aliens won’t in the third round.” 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 . However, people who are
Why others could expect a much larger payment this time
A larger maximum total per person is an obvious way your household would see more money from a third check, but there’s more to it than that. Since the upper limit for thewith an extra (according to , more people hit the upper income limit for receiving a second payment. And that means they at all.
A third stimulus check will make more groups of people(namely who pay taxes) and bring a larger total check to qualified individuals and their families, including $1,400 payments to dependents. A change in your circumstances might also mean you qualify for more money this time. Here are other ways a in your pocket.
For more information about stimulus checks, here’s information about other funding that could be in the, how to and everything your (and the other way around.)
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