Economic Stimulus Update
Mar 15, 2021
Third Economic Impact Payment
On Friday, March 12th, the IRS began distributing the third round of Economic Impact Payments as part of the recently approved $1.9 trillion American Rescue Plan Act of 2021.
Here’s what you need to know:
- Eligible families will receive $1,400 per person, including for all dependents claimed on their tax return (including those over 17).
- Income eligibility requirement levels have changed.
- Unlike previous EIPs, these payments are not exempt from garnishment.
- The IRS began their distribution on Friday and will continue to process direct deposits and mail checks/debit cards over the next few weeks.
Eligibility Requirements: (these differ slightly from the previous two rounds of payments)
- U.S. Citizens or resident alien
- Filed a tax return in 2019 or 2020
- Have a valid Social Security number
- Your adjusted gross income (AGI) on their tax return does not exceed:
- $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
- $112,500 if filing as head of household or
- $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.
- Payments will be phased out – or reduced if their AGI exceeds:
- $160,000 if married and filing a joint return or if filing as a qualifying widow or widower
- $120,000 if filing as head of household or
- $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.
As always, please be mindful of scams. Criminals may try to use this as an opportunity to try and contact you to steal your personal information. These scams could come in all different forms – email, phone calls, texts or even social media. However, the real IRS will NEVER contact you for personal information so you should know if someone asks you questions claiming to be from the IRS, it’s a scam. Also, beware of emails from unknown sources that try to get you to click on a link or attachment claiming to have information about the economic impact payment.
Source: Independent Community Bankers of America