Will You Get a Third Stimulus Payment? Here’s What to Know.
The “American Rescue Plan” is a $1.9 trillion relief bill signed by President Biden on March 11, that is meant to provide help to families and industries still suffering due to the pandemic. You may have questions. Who will receive the $1,400 stimulus payments included in the bill? When will they arrive? We’re here to help you sort out the information.
Note: Check back for the latest updates. This information up to date as of March 15, 2021.
The Big Question: How Much Will You Receive of the $1,400 Stimulus Payment?
According to reports, many of the qualifications from the first stimulus payment in April 2020 and the second stimulus payment in December 2020 remain the same for this round. As with the prior rounds of payments, those with higher incomes will receive less or no funds. However, with the third stimulus payment, payments phase out completely at a lower income than either the first or second round of payments. The payments are calculated based on your 2020 tax return with your adjusted gross income, or your 2019 return if you haven’t filed your 2020 tax return when the bill is signed into law.
If you filed as single and reported up to $75,000 in adjusted gross income, you’ll get a $1,400 payment. However, if your adjusted gross income was over $75,000, your stimulus payment will be reduced, and if you earned more than $80,000 as an individual, you will not receive a payment at all.
If you filed as married filing jointly and reported up to $150,000 in adjusted gross income combined, you will get a $2,800 payment. However, if your combined adjusted gross income was over $150,000, your stimulus payment will be reduced, and if you earned more than $160,000 combined as a joint filer, you will not receive a payment at all.
If you filed as head of household and reported up to $112,500 in adjusted gross income, you will get a $1,400 payment. However, if your adjusted gross income was over $112,500, your stimulus payment will be reduced, and if you earned more than $120,000 as head of household, you will not receive a payment at all.
Under the American Rescue Plan, parents and guardians are eligible for more support.
Parents and guardians can receive $1,400 for each eligible child and adult dependent, which is any qualifying dependent that you claimed on your tax return, regardless of age.
When Will You Get the Third Stimulus Payment?
The third stimulus bill was signed into law on Thursday, March 11, 2021. Payments began arriving as early as March 12, 2021 for those who have direct deposit information on file with the IRS. However, some banks won’t release funds until Wednesday, March 17, 2021. Visit the Get My Payment portal to track the status of your payment.
What Do You Need to Do to Receive the Payment?
Most people do not need to take any action to receive their payment. The IRS has stated that they will use the following information to determine eligibility and issue the third payments:
- Information from your 2020 tax return (or 2019 tax return, if you have not yet filed your 2020 tax return)
- If you used the Non-Filers portal to register to receive the first payment in 2020, the IRS will use the same information you have on file in the portal
- Information on 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 (SSI) 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.
The IRS will automatically send payments to those who are eligible, based on the above information. If you have a bank account on file with the IRS, and you are eligible to receive a payment, you will receive funds to that account. If you do not have an account on file, or if you received your previous stimulus payment(s) via a government-issued prepaid card or paper check, you will receive the new payment via the same method.
If you have not yet filed taxes for 2019 or 2020, and you did not use the Non-Filers portal to register to receive the first round of economic impact payments, you will need to take action. File your 2020 tax return and claim the Recovery Rebate Credit to receive any stimulus payments you may be due.
How Will You Receive the Third Stimulus Payment?
The IRS began sending payments on March 12, 2021. The first people to receive them were those with direct deposit information on file with the IRS. Similar to the first and second rounds of payments, the IRS likely will send funds electronically, where possible. This helps ensure that families in need receive their payments quickly. The IRS will send payments to the account they have on file in most cases. If you do not have an account on file, you will receive your payment via a government-issued prepaid debit card or a paper check in the mail. The payment will come in a white envelope prominently displaying the U.S. Department of Treasury seal.
How Do You Track the Status of Your Stimulus Check?
The best way to track your payment is to use the IRS Get My Payment portal. Your bank will not have information on when your payment will arrive. Note that as of January 29, 2021, the portal is no longer being updated with information on the first and second payments.
Will You Get a Stimulus Check if You Didn’t File Taxes?
If you filed taxes for 2019 or 2020, the IRS will use the latest information on file to determine your eligibility to receive a check. If you haven’t yet filed taxes for 2019 or 2020, the IRS may use information on file from the first round of economic impact payments, if you used the Non-Filers portal. If you did not use the Non-Filers portal for the first round of payments, you can still receive a payment if you qualify. File a 2020 tax return and claim the Recovery Rebate Credit. Remember, the date to file your taxes and pay any money you owe without penalty this year is April 15. You can file online on the IRS website here.
Even if you don’t normally file taxes, the best way to ensure you get any economic impact payment you may qualify for is to file your tax return this year. You can file online on the IRS website here. When you do, be sure to complete the Recovery Rebate Credit. Follow the prompts to calculate the difference between the payment you received (if any) and the amount you are owed. If eligible, the IRS will either increase your tax refund or decrease the amount you owe in taxes.
Will Your Stimulus Payment be Taxed?
As was the case with the previous stimulus checks, the third stimulus payment is not expected to be included as taxable income.
Learn more about how the stimulus payment can impact your taxes in this blog post.
How Can ACE Help?
As an essential business, ACE Cash Express remains open to service your financial needs. You can cash your stimulus check at a store near you, add funds to or withdraw funds from a card, pay bills, send money orders, and more.
Can ACE Help You Track the Status of Your Economic Impact Payment?
Banks and financial institutions don’t have access to information regarding when someone is expected to receive their stimulus payment or what banking information the IRS has on file. The best way to check those details is through the IRS Get My Payment portal.
For more details on what’s included in the American Rescue Plan, visit whitehouse.gov.
Sources:
https://www.cbsnews.com/news/biden-covid-relief-bill-stimulus-check/
https://www.whitehouse.gov/briefing-room/legislation/2021/01/20/president-biden-announces-american-rescue-plan/
https://www.cnbc.com/2021/03/01/1400-stimulus-checks-heres-how-soon-the-money-could-arrive.html
https://www.kiplinger.com/taxes/602268/third-stimulus-check-update-the-current-plan-for-1400-payments
https://www.cnet.com/personal-finance/nonfilers-and-stimulus-checks-what-you-need-to-know-if-you-never-file-taxes/
https://www.cnbc.com/2021/02/03/claim-missing-stimulus-payments-2020-tax-return.html
https://www.irs.gov/newsroom/recovery-rebate-credit
https://www.washingtonpost.com/business/2021/03/03/biden-limits-eligibility-stimulus-payments-under-pressure-moderate-senate-democrats/
https://www.cnn.com/2021/03/08/politics/will-i-get-a-third-stimulus-check/index.html
https://www.usatoday.com/story/news/politics/2021/03/08/stimulus-checks-start-arriving-soon-under-covid-19-relief-bill/4627452001/
https://www.cnbc.com/2021/03/10/when-will-irs-send-1400-dollar-stimulus-check.html
