CHATTANOOGA, TN (mocsnews.com) — A third round of Economic Impact Payments, EIP3, will take effect in March. President Joe Biden’s American Rescue Plan aims to develop a national vaccination program, reopen schools, deliver immediate relief to working families, and support struggling communities. One of the notable changes from the previous stimulus payments, referred to as EIP1 and EIP2, is the inclusion of dependent adults.
The Internal Revenue Service will use already available data to determine eligibility and distribute the upcoming stimulus payment. Taxpayers with direct deposit can expect to receive the payment that way, while others will receive a check or prepaid debit card in the mail. The payment will arrive in a plain white envelope, so it is advised to thoroughly check mail during this time. In addition to EIP3, those who did not receive the first two Economic Impact Payments may qualify for the Recovery Rebate Credit.
NBC News reporter Sahil Kapur advises those who suffered the loss of a job or decrease of income last year to file their tax returns as soon as possible. “Otherwise they will base it on 2019 income before the pandemic,” says Kapur, “people who lost their jobs might miss out on money.” Non-filers should visit the IRS’ page for additional tax relief information.
The Treasury Department sent the American Rescue Plan Act to Congress where it became public law on March 11. According to the IRS, “Families will get a payment for all their dependents claimed on a tax return, not just qualifying children under 17.” This news brings hope to many adult dependents having financial troubles.
For dependents to receive the stimulus payment, however, the one claiming them must meet a set of criteria. “Taxpayers will not receive a third payment if their AGI [Adjusted Gross income] 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.” People can access the status of their stimulus payment through the IRS’s Get My Payment tool.