Yesterday was the first payday for the new stimulus payments

0

You didn’t necessarily need the luck of the Irish to find a pot of gold on St. Patrick’s Day. Indeed, yesterday was the “official payment date” for the first wave of third-round stimulus check payments. On Wednesday, about 90 million Americans received a stimulus payment deposited into their bank account. Additionally, people who previously received a “pending” or “interim” payment were granted access to their funds yesterday.

If you didn’t receive a payment yesterday, you can find out when you’ll receive yours using the IRS “Get my payment” tool. If you weren’t scheduled for a first wave payment yesterday, keep checking – more third stimulus checks will be sent over the next few weeks. The online tool allows you to:

  • Check the status of your stimulus payment;

  • Confirm your type of payment (paper check or direct deposit); and

  • Get an expected delivery date for direct deposit or paper check (or find out if a payment hasn’t been scheduled).

For more information on the tool, see Where is my stimulus check? Use the IRS’ “Get My Payment” tool to get an answer.

How much will you get?

If you are eligible for a third stimulus check (not everyone qualifies for a), the “base amount” of your payment is $1,400. If you are married and file a joint tax return, the basic amount increases to $2,800. Then, for each dependent in your family, the IRS will add an additional $1,400. So, for example, a family of five could end up with a third $7,000 stimulus check.

But you won’t get the full amount if the adjusted gross income (AGI) reported on your last tax return is over a certain amount. In fact, if your AGI is high enough, you won’t get a third stimulus check.

Here’s how your stimulus check can shrink. If you filed your last tax return as a single filer, your third stimulus check will be reduced — potentially to zero — if your AGI is $75,000 or more. This threshold increases to $112,500 for heads of household filers and $150,000 for married couples filing jointly. The reduction (or “phase out”) to zero is fast. Third-round stimulus checks are completely waived for single filers with an AGI greater than $80,000, head of household filers with an AGI greater than $120,000, and joint filers with an AGI greater than $160,000. If your income is above the appropriate amount, you receive nothing, regardless of the number of dependents in your family.

To calculate the amount of your stimulus payment, just go to our Third Stimulus Verification Calculator and answer three simple questions. The tool will spit out a custom estimated payout amount just for you.

Information from your 2019 or 2020 tax return

In most cases, the IRS will get the information it needs to calculate your third stimulus check from your 2019 or 2020 tax return. If your 2020 tax return is not filed and processed by the time the IRS begins processing your third stimulus check, it will use your 2019 tax return to obtain the necessary information. If your 2020 return is already filed and processed, your stimulus check will be based on that return.

If, however, your 2020 return is not filed and/or processed before after the IRS sends you a stimulus check, but before August 16, 2021 (or September 1 if the May 17 filing deadline is pushed back further), the IRS will send you a second payment for the difference between what your payment should have been if it was based on your 2020 return and any payment actually sent based on your 2019 return.

If you don’t file a 2019 or 2020 tax return, the IRS may get enough information to send you a check from the Social Security Administration, Railroad Retirement Board, or Veterans Administration if you receive benefits. regularly from one of these other federal agencies. However, you might not get the full amount. For example, these other federal agencies might not be able to provide the IRS with information about your dependents. So you may not receive the additional $1,400 payment per dependent added to your third stimulus check.

Recovery rebate credits

If you don’t get a third stimulus check, or if you don’t get the full amount you’re entitled to, there’s a way to get the money you’re owed – but you’ll have to wait until next year to get it. this. When you file your 2021 tax return in 2022, you may be able to claim the Salvage rebate tax credit.

As with the first two stimulus payments, your third stimulus check is simply a credit prepayment. So if your stimulus check (i.e. prepayments) is less than the recovery credit amount, you can recoup the difference on your 2021 tax return as a tax refund plus important or a reduced tax bill. On the other hand, if your stimulus check is greater than the amount of the credit, you do not have to repay the difference. So you cannot lose with this credit.

For more information on your third stimulus check, see Your third stimulus check: how much? When? And other FAQs.

Share.

Comments are closed.