The $1,400 Economic Impact Payment, also known as the third stimulus check, was a key component of the American Rescue Plan Act passed in 2021. These payments aimed to provide financial relief to millions of Americans during challenging economic times. But who exactly qualifies for this payment? Let’s break it down.
Key Eligibility Criteria
- Income Requirements
- Single Filers: If your adjusted gross income (AGI) is $75,000 or less, you qualify for the full $1,400 payment. The payment phases out completely at $80,000.
- Married Couples Filing Jointly: Couples with a combined AGI of $150,000 or less receive $2,800 (or $1,400 each). The phase-out threshold ends at $160,000.
- Head of Household: Individuals filing as head of household qualify for the full payment if their AGI is $112,500 or less, with the phase-out ending at $120,000.
- Dependent Payments
- For each qualifying dependent, an additional $1,400 payment is provided. Dependents include children under 18 and some adult dependents, such as college students or elderly family members, claimed on your tax return.
- Tax Filing
- The IRS bases eligibility on your most recent tax return. If you filed for 2020, those figures are used; if not, the IRS references your 2019 return.
Special Circumstances
- Non-Filers: If you didn’t file taxes but meet the income requirements, you might still be eligible. The IRS provides a Non-Filers tool to ensure you can claim your payment.
- Social Security and Veterans Benefits Recipients: Those who receive benefits through Social Security, SSI, SSDI, or VA benefits automatically qualify, even if they haven’t filed taxes recently.
- Mixed-Status Families: Households with mixed immigration statuses may also qualify, provided at least one family member has a valid Social Security number.
How to Claim Missing Payments
If you believe you qualify but didn’t receive the payment, you can claim it as a Recovery Rebate Credit when filing your tax return. This ensures that eligible individuals who were overlooked or whose payment amounts were incorrect receive their due amount.
Common Questions
- Do I Need to Repay the Stimulus? No, the $1,400 payment is not taxable and does not need to be repaid, even if your income increased in the subsequent year.
- What About Newborns or Newly Added Dependents? If you had a child in 2021 or added a dependent not reflected in your previous tax return, you could claim the additional payment through the Recovery Rebate Credit.
Conclusion
The $1,400 IRS payment was designed to reach as many eligible Americans as possible, but understanding the rules is crucial to ensuring you’re included. By meeting the income requirements, including all qualifying dependents, and filing the necessary documentation, you can ensure you receive the financial relief you’re entitled to. For more information, visit IRS.gov.