A Third Stimulus Check Is Coming Soon! Here’s What We Know So Far…
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Get ready for another round of stimulus checks!
The US House of Representatives signed off on the $1.9 trillion American Rescue Plan Act today (March 10), approving a third round of direct stimulus payments for millions of American households. In addition to sending payments of up to $1,400 for each individual, this bill will also extend federal unemployment insurance benefits through Sept. 6, 2021 and increase the current child tax credit for 2021.
President Biden is expected to sign the bill on Friday. Then, the Internal Revenue Service is expected to begin sending payments to eligible households in a matter of days. As in the past, payments will be deposited into bank accounts for anyone with their electronic banking information on file with the IRS. Other eligible Americans will receive either a prepaid debit card or a paper check in the mail.
Here are answers to questions you may have about the third round of stimulus checks:
Who will receive a third stimulus payment from the government?
Virtually any U.S. resident with a valid Social Security number will be eligible for an economic impact payment under the American Rescue Plan Act, including veterans, workers eligible for unemployment, and most people receiving Social Security retirement and disability benefits.
In a big change from the first two stimulus payments, this time around all dependents, regardless of age, will qualify for a payment as long as the person who claimed them meets the necessary criteria. This means that college students and other adult dependents will, for the first time, receive a stimulus payment. Note that the payments will go to the individual who filed the taxes, not the dependent themselves.
How much money will I get this time?
Individuals with an adjusted gross income of $75,000 or less, and couples with an adjusted gross income of $150,000 or less, are eligible to receive a one-time payment of $1,400. These income thresholds have not changed since the first two payments.
This round of payments will be based on the income you reported on your 2020 tax return. If you haven’t filed yet, the Treasury Department will use your 2019 tax return to calculate your payment.
As with the previous two payments, Americans who earn more than the income threshold will still receive a partial check, but this time, there’s a much steeper phaseout. Individuals who earn $80,000+ a year and couples who earn $160,000+ a year will not receive any payment at all. For those filing as the head of household, the phaseout begins at $112,500 and caps at $120,000.
What will I need to do to collect my stimulus check?
Similar to the first two rounds of stimulus payments, you probably won’t need to do anything to receive the third payment. Taxpayers will not need to register or sign up in any way. As stated above, if the IRS already has your bank account information on file, it will likely just issue your third stimulus payment via direct deposit. If the IRS doesn’t have your electronic banking information on file, you will likely receive a paper check or prepaid debit card in the mail.
In the past, Americans who received direct deposit seemed to get their payments much faster than those who got a check or debit card in the mail. In certain limited cases, the IRS allowed taxpayers to provide their bank account information to receive electronic payments, but it’s unclear whether that will be an option for the American Rescue Plan Act payments.
The IRS has created a website to provide information regarding Economic Impact Payments, who qualifies, and what to do if you don’t receive a payment.
Bookmark this page and keep checking back for new updates as they’re posted! We expect to see new information posted here after the President signs the American Rescue Plan Act later this week.
Curious about how much money might be coming your way? Kiplinger.com has a handy Stimulus Check Calculator that you can use to estimate your next payment!
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