Candace J. Dixon
The Third Economic Impact Payment was authorized by the American Rescue Plan Act of 2021 as an advance payment of the 2021 Recovery Rebate Credit. Most eligible people won't need to take additional action to get this payment.
On May 5, the IRS, the U.S. Department of the Treasury, and the Bureau of the Fiscal Service announced the eighth batch of Economic Impact Payments from the American Rescue Plan. This batch of payments began processing on Friday, April 30, with an official payment date of May 5, with some people receiving direct payments in their accounts earlier as provisional or pending deposits, and included more than 570,000 of “plus-up” payments, with a value of nearly $1 billion.
The IRS will continue to send these additional payments by direct deposit or mail as a check or debit card on a weekly basis as they process tax returns and evaluate eligibility for a plus-up payment using your 2020 return. Individuals who already received a third Economic Impact Payment based on a 2019 tax return or information received from SSA, RRB or VA may be eligible for a larger amount based on their recently processed 2020 tax returns.
The IRS is working with federal agencies to get updated information for recipients to ensure we are sending automatic payments to as many people as possible, and most eligible people won’t need to take additional action to get a third payment.
Although the IRS is processing payments automatically for most people, some individuals may need to file a 2020 tax return even if they don't usually file to provide information the IRS needs, because eligibility has changed in this third round of payments. For example, unlike the first two payments, the third payment is not restricted to children under 17. Eligible individuals will get a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.
The third payment is not claimed on your 2020 tax return or used to calculate the 2020 Recovery Rebate Credit.
Eligibility
Someone is generally eligible for the full amount of the third Economic Impact Payment if they:
are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and
are not a dependent of another taxpayer and
their adjusted gross income (AGI) is not more than:
$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 status
Payments will be reduced above those AGI amounts, and people will not receive a payment if their AGI is at least:
$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
$80,000 for eligible individuals using any other filing status
Amount
The third Economic Impact Payment amount is:
$1,400 for an eligible individual with a valid Social Security number($2,800 for married couples filing a joint return if both spouses have a valid Social Security number or if one spouse has a valid Social Security number and one spouse was an active member of the U.S. Armed Forces at any time during the taxable year)
$1,400 for each qualifying dependent with a valid Social Security number or Adoption Taxpayer Identification Number issued by the IRS
How Third Payments Differ from the first Two Economic Impact Payments
The third payments differ from the earlier payments in several respects:
Income phaseout amounts changed. Payments begin to be reduced for individuals with adjusted gross income of more than $75,000 (or $150,000 if married filing jointly). The reduced payments end at $80,000 for individuals and $160,000 for married filing jointly. People above these levels will not receive any payment.
Payment amounts are different. Most families will get $1,400 per person, including all dependents claimed on their tax return. Typically, this means a single person with no dependents will get $1,400, while married filers with two dependents will get $5,600.
Qualifying dependents expanded. Unlike the first two payments, the third payment is not restricted to children under 17. Eligible individuals will get a payment based on all of their qualifying dependents claimed on their return, including older relatives like college students, adults with disabilities, parents and grandparents.
Some people won't be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit, because income levels in this third round of Economic Impact Payments has changed.
Payment Information
If you're eligible for a plus-up payment, you can now check the status with the IRS Get My Payment tool.
You can get help with the tool here: Get My Payment Frequently Asked Questions. Previous payment information is no longer available in Get My Payment. See First and Second Payment Status.
IRS Notices
After each of the three Economic Impact Payments is issued, the IRS is required to mail a notice to each recipient's last known address. The notice provides information about the amount of the payment, how it was made and how to report any payment that wasn't received. Some people may receive multiple notices about each payment.
The IRS is mailing Notice 1444-C to people who received a third Economic Impact Payment. This letter should be kept with tax year 2021 records. These letters can be used to claim the money that you're owed from the March stimulus package. For example, if the IRS based your stimulus payment amount on your 2019 taxes, but you made less money in 2020, or if you gained a dependent that the IRS didn't know about when first calculating your original payment total, you could be eligible for more money. Also, if you had a change of address, make sure your mail is coming to your current address by informing both the IRS and the US Postal Service. You can click here to alert the IRS of your address change.
The IRS can't issue replacement copies of these notices. Taxpayers who don't have their notices can view the amounts of their Economic Impact Payments through their online account.
If you receive your payment on a debit card, this is what the envelope will look like. Be careful not to throw it away!
If you do accidentally throw it away, request a replacement by calling EIP Card Customer Service at 800-240-8100.
You can read additional information about the EIP Card here on https://www.eppicardhelp.com/ .
Additional Resources:
Questions and answers about the Third Economic Impact Payment