Cash Benefits

COVID-19: Economic Impact Payment

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Summary

The third round of the Economic Impact Payments (EIP) was approved under the American Rescue Plan of 2021 which was passed and signed into law on March 11, 2021.

Under the Act, the EIP will provide payments up to $1,400 for individuals or $2,800 for married couples, plus an additional $1,400 for each dependent. Unlike the prior rounds of EIP, families will get a payment for all their dependents claimed on a tax return, not just their qualifying children under 17.

Description of the Payment

The third round of the Economic Impact Payment (EIP) began on March 12, 2021 and provided a one-time direct cash payment up to a maximum of $1,400 for individuals or $2,800 for married couples, plus $1,400 for all dependents claimed on a tax return regardless of age.

Individuals will receive the maximum payment if the household’s adjusted gross income (AGI) in tax year 2020 (or 2019 if a return for 2020 has not been filed) is less than:

  • $75,000 for individuals or married couples filing separately
  • $112,500 for head of households
  • $150,000 for married couples filing jointly

Payments will be gradually reduced if adjusted gross income is between

  • $75,000 and $80,000 for individuals or married couples filing separately
  • $112,500 and $120,000 for head of household
  • $150,000 and $160,000 for married couples filing jointly
  • The amount of the payment will be based on the taxpayer’s Adjusted Gross Income (AGI).
Note

Note 1: The phaseout threshold (the amount at which point there is zero stimulus money) is lower in this act than the previous act, which means many families will unfortunately phaseout out sooner.

Note 2: The amount of the stimulus payment is not taxable. When filing for tax year 2020, there is need to report the payment as income on the return.

Summary of the Three Rounds of Payment

First Round Second Round Third Round
The Coronavirus Aid, Relief, and Economic Security (CARES) Act was passed by and signed into law on March 27, 2020.

Under the Act payments were up to $1,200 per adult and $500 per child under 17 years old.
The Coronavirus Response and Relief Supplemental Appropriations (CRRSA) Act of 2021 was passed and signed into law on December 27, 2020

Under the Act, a second round of payment were made available. Payments were up to $600 per eligible family member, $1,200 for married filing joint returns and $600 per dependent child under 17.
The American Rescue Plan (ARP) of 2021 was passed and signed into law on March 11, 2021.

Under the Plan, a third round of payments were made available. Payments were up to $1,400 for individuals or $2,800 for married couples, plus an additional $1,400 for each dependent.

Unlike the prior rounds of EIP, families received a payment for all their dependents claimed on a tax return, not just their qualifying children under 17.

Qualifying for the Payment

The following qualify for the stimulus payment:

  • Have adjusted Gross Income (AGI) in 2020 (or 2019 if 2020 return is not filed or processed) below the guidelines listed above under Description of the Payment.
  • Qualifying children under 17 years old, as defined by the IRS tax code for the Child Tax Credit.
  • Qualifying dependent(s) claimed on a federal 2020 tax return (or 2019 return if a 2020 return has not been filed or processed) with a valid SSN or Adoption Taxpayer Identification Number issued by the IRS.
  • Must be a U.S. citizen or a qualifying resident alien (https://www.irs.gov/individuals/international-taxpayers/determining-alien-tax-status) with a valid social security number.

Visit: https://www.irs.gov/coronavirus/economic-impact-payments for a tool to help determine eligibility.

For detailed information on eligibility for incarcerated individuals, adopted/foster care children, resident of Puerto Rico, the U.S. Virgin Islands, American Samoa, Guam or the Commonwealth of the Northern Mariana Islands, if living abroad, visit: https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment.

Accessing the Payment

RECEIVING PAYMENT

The IRS has issued all first, second and third Economic Impact Payments.
However, eligible individuals who may have missed the stimulus payments can claim a Recovery Rebate Credit for tax year 2020 or 2021.

For more information visit: https://www.irs.gov/coronavirus/economic-impact-payments.

CHECK THE STATUS OF PAYMENT

Individuals can check the status of the third stimulus payment only by going to Get My Payment portal.

How Payments are Received

The IRS will send payments by direct deposit, mailed check, or debit card. For more information on payments go to https://www.irs.gov/coronavirus/get-my-payment-frequently-asked-questions#bank.

Additional Information

For additional information visit: https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know.

For a FAQ, visit: https://www.irs.gov/coronavirus/economic-impact-payment-information-center.

Resources

Center for Independence of the Disabled
https://www.cidny/nyconnects
844-862-7930

Assistance in determining eligibility and receiving benefits.

How the Economic Impact Payments (EIP) Impact Public Benefit Programs

Click here for a chart on the impact of various COVID-19 programs.