The rules of qualifications have altered quite a bit for the third stimulus check. An overwhelming majority of American households have qualified for the COVID-19 economic stimulus relief check. Around 85% are eligible for the stimulus check and more than 90 million
Payments have already been sent by the IRS through direct transfer. Many paper checks have also been sent out through the US postal department.
Read on to know if you are eligible for the stimulus payment. Further, you will know if you are entitled to the maximum of $1,400 for every qualifying individual.
If you haven’t received your check, you can find out the exact status and how much you could expect to receive. You can also initiate ways to hasten up the process so that you can get your check earlier.
The Third Stimulus Check Has Quite A Few New Rules
Ever since the initial two payments, the rules have been altered for the third stimulus check. There are new rules around, citizenship, marital status, age, income limitations, and tax category. All these factors determine if you will receive your check and also has an impact on the amount in your check.
Determining The Time And Amount Of The Check
If you have qualified for the third stimulus check, here is how you can track your third stimulus check and set up your direct deposit. You can also know the way you can claim your missing stimulus payment from the last two checks by filing a trace. There are also new rules regarding families with babies adopted or born in 2020, non-filers, and families with child support.
Are You Eligible For The Third Stimulus Check?
The third stimulus check has opened up new grounds for Americans to claim their checks. The main criterion is that they should be within the earning bracket laid down by the IRS. The maximum income for families and individuals who qualify for the maximum amount of $1,400 has changed. The rules are quite different from those for the initial two stimulus checks.
Individuals who receive an AGI (Adjusted Gross Payment) of $75,000 or less qualify for the full amount. The check amount decreases for every increase in earnings and maxes out at $80,000. Individuals earning that amount or more will receive nothing.
The corresponding amounts are $150,000 and $160,000 for couples who file jointly. For Heads of Household, the figures are $112,500 and $120,000.
For dependents of every age group, the guardian receives the full amount of $1,400, but if the total earnings are within the limit.
For the first time, mixed-citizenship families will qualify for the stimulus check. But there are other criteria to be met.
The rules for American citizens staying abroad haven’t changed from the first two stimulus checks. SSI & SSDI beneficiaries also qualify, but they will have an additional step to fulfill before they do so.
The third stimulus check will not be garnished for those who owe previous child support.
Do Dependents Get The Full Amount Of $1,400 In The Third Stimulus Check?
Each dependent child below 16 received $600 in the second stimulus check approved in December 2020. There wasn’t any limit on the number of children eligible. The amount was $500 for the first payment under the CARES Act.
This time around you get $1,100, the sum of the previous amounts, for your baby born or adopted in 2020 if you have not received either of the two previous payments.
For babies and all other dependents, the third stimulus check adds $1,400 for every addition.
Do Dependents Get Anything Less Than $1,400 In The Third Stimulus Check?
There are changes this time around for dependents. They are entitled to $1,400 this time. This is the first instance that both adults and child dependents qualify. Older relatives and college students and individuals of all other ages also qualify for the third stimulus check. This amount will be added to the household amount and will not go directly to the dependents. This brings around 13.5M individuals under the stimulus payment beneficiaries group as per data released by the People’s Policy Project.
How Does Living As Part Of A Mixed-status Household Influence Your Third Stimulus Check?
For the second stimulus payment in December, having a Social Security number was the main requirement for receiving a check. A non-US citizen with an American spouse could both receive the check if they had the number, under the ‘mixed-status family. Such families did not receive the first stimulus payment as under the CARES Act, households where even one member was a non-citizen were denied the stimulus payment, even though the rest of the family were American citizens.
For the third stimulus check, families which had just one Social Security number qualify. So non-citizen parents whose children were American citizens qualify for the third stimulus check.
The new $1.9 trillion stimulus bill passed by President Biden has spread out the qualifications. All mixed-status households qualify for the third stimulus check if at least a member of the family possesses a Social Security number.
Will Any Child Support Payment Due Affect The Third Stimulus Check?
The third stimulus payment may be garnished for the payment of past debt. If you claim due stimulus payments as a Recovery Rebate Credit as part of the 2020 tax returns, part of the total check could be garnished to pay certain debts.
Incarcerated people are entitled to the $1,400 max third stimulus check. A federal judge ordered the IRS to pay incarcerated people the full amount.
What Is The Rule Regarding Older Adults Or If You Are Retired?
Retired people over 65 years and other older adults received the previous two stimulus payments. Factors like AGI and your tax returns and your pension will affect the amount of your third stimulus check. Older dependents will receive more, as part of the total household income. You can find out if you are dependent or qualify for your stimulus check.
Your check amount will also be influenced if you are a part of the SSDI or SSI program.
File 2020 Returns Immediately Even If You Are A Non-filer
Your second payment was determined by your 2019 returns. Under the CARES Act, non-filers were exempted from filing returns in 2018 and 2019. It wasn’t obligatory to file if you were over 24 and earn below $12,200, and are not a dependent.
As a married filer, your earnings are below $24,400. Further, you are eligible if you collect federal benefits.
You can claim any part of the first and second stimulus check due by filing your 2020 tax returns immediately and claim it under the Recovery Rebate Credit.
Reception Criteria For People under SSDI Or SSI
Federal beneficiaries under the SSDI or SSI programs received their stimulus check under the CARES Act. They received payment by a paper check or through a non-Direct Express account.
Such beneficiaries, including Veteran and Railroad recipients, also received their checks in December 2020.
The IRS in a statement has assured that such beneficiaries will get the third stimulus check and the date will be made known soon.
The third stimulus check is determined by the income you declare in your tax returns. Your AGI, the Adjusted Gross Income determines your total stimulus payment and also whether you qualify for any amount.
Calculating Your Third Stimulus Check As Per Your Earnings
Here is how your third stimulus check is calculated based on your declared income with the IRS.
Individual taxpayers with AGI below $75,000 will get the full amount of $14,000. This will decrease with every increase in earnings, and those earning above $80,000 will not receive any check. For Head of Household, the corresponding figures are $112,500 and $120,000 while for married couples who file jointly, the figures are $150,000 and $160,000.
The IRS will utilize your latest tax returns to decide your third stimulus check. So if your earnings have dropped compared to your 2019 figures, you can file your 2020 returns and claim a bigger check.