Third Economic Impact Payments: What You Should Know
As part of the American Rescue Plan Act, signed into law in March 2021, many Americans will receive a third round of Economic Impact payments (EIP3). Additional funding has also been for provided for housing assistance, extended unemployment benefits, nutritional programs, COVID-19 relief programs, and more. Visit whitehouse.gov for more about the American Rescue Plan Act and read on for important information and resources related to the third round of Economic Impact Payments.
Payment Eligibility and Status
Eligibility is based on your adjusted gross income (AGI) for taxes filed in 2019 or 2020. If your 2020 tax return has not been filed or received, information from your 2019 return will be used. Typically, each qualified individual will receive $1,400 as shown below. For more information and eligibility guidelines, visit IRS.gov/eip. To check your payment status, visit IRS.gov/getmypayment.
Tips for Spending Payments
In times of uncertainty and change, it's more important than ever to evaluate your budget, priority expenses, and emergency savings. Every situation is different - making a plan based on your current circumstances, can help you maximize the payment you receive.
· If your regular household income has been decreased, consider using this stimulus money to pay for priority expenses.
· If you're still receiving your regular pay and do not have at least 3 months of expenses saved, consider using this stimulus money to build your emergency savings.
· If you're still receiving your regular pay and have adequate emergency savings, consider using this stimulus money to pay down or pay off debt.
· If you're still receiving your regular pay, have adequate emergency savings, and no debt, consider investing this stimulus money or donating it to charity.
Additional Resources and Information
• Most people won’t need to take any action – in most cases payments will automatically be deposited using information on file with the IRS, from 2019 or 2020 tax returns, or the IRS non-filers tool for persons who registered there last year.
• Payments will arrive via direct deposit or by mail – if direct deposit information is on file with the IRS payments should be received that way. If not, payments will be received by mail as a check or debit card. For more information on payments via debit card, visit EIPcard.com.
• Payments will be phased out earlier – payments will be reduced for those above income eligibility guidelines and eliminated completely for individual filers earning more than $80,000, head of household filers earning more than $120,000, and married couples earning more than $160,000.
• Additional dependents may be eligible for EIP3 payments – the American Rescue Plan Act expands payment eligibility for dependents, including adult dependents and some people with disabilities.
• Recovery Rebate Credit – if you meet eligibility requirements but did not file a tax return or register with the non-filers tool, or if you did not receive full payment for the first or second round of eligible stimulus money, you may be able to claim the Recovery Rebate Credit on your 2020 tax return.
• Updated information is available on the IRS website – Visit IRS.gov for more information from related to the third round of Economic Impact Payments.