Who will receive the Third Stimulus check?
The U.S. Senate approved President Biden’s $1.9 trillion coronavirus relief package Saturday, directing a third round of stimulus checks to most Americans. The bill will return to the House this week for final approval. If the bill is signed into law, the IRS could begin delivering the checks within days to one week, based on the timeframe for the previous round of checks.
So who will received the third stimulus checks?
Individuals who earn as much as $75,000, or couples making $150,000, plus their children or adult dependents, qualify for the full $1,400 per person. Single parents with at least one dependent who earn $112,500 or less also get the full amount. Families in which some members have different citizenship and immigration classifications are also eligible for a payment, if at least one person has a Social Security number.
How will the IRS determine my income?
Under the current bill, eligibility for and the amount of a third stimulus check would be based on either your 2019 or 2020 return. If your 2020 tax return isn’t filed and processed by the IRS by the time the tax agency starts processing your third stimulus payment, the IRS would use information from your 2019 tax return.
If your 2020 return is already filed and processed when the IRS is ready to send your payment, then your stimulus check eligibility and amount would be based on information from your 2020 return.
If your 2020 return is filed and/or processed after the IRS sends you a stimulus check, but before July 15, 2021 (or September 1 if the April 15 filing deadline is pushed back), the IRS would send you a second payment for the difference between what your payment should have been if based on your 2020 return and the payment actually sent based on your 2019 return.
What if I’m still waiting for my round one or round two payment?
Eligible individuals who did not receive the full amounts of both Economic Impact Payments may claim the Recovery Rebate Credit on their 2020 Form 1040 or 1040-SR.
Generally, you are eligible to claim the Recovery Rebate Credit if you were a U.S. citizen or U.S. resident alien in 2020, cannot be claimed as a dependent of another taxpayer for tax year 2020, and have a Social Security number valid for employment that is issued before the due date of your 2020 tax return (including extensions).
You must file Form 1040 or Form 1040-SR to claim the Recovery Rebate Credit even if you are normally not required to file a tax return.
Unauthorized immigrants would not be eligible for payments, but spouses and children who are legal would be.
Check back as we will update as new information is released.
As always, should you have any questions or concerns regarding your tax situation please feel free to contact us.
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