Who qualified for a third stimulus payment?
Individuals could receive up to $1,400 through the third stimulus checks, according to the terms. Couples who file jointly may be eligible for up to $2,800 in tax relief. In addition, qualified dependents may be eligible for $1,400.
To be eligible, you had to be a U.S. citizen or a resident alien in 2021. A valid Social Security number was also required, though there are some exceptions for spouses or dependents.
To be eligible for your payout, you could not have been claimed as someone else’s dependent on a 2020 tax return.
Your adjusted gross income must not exceed specified levels to be eligible for full payment: $75,000 for individuals, $112,500 for heads of household, and $150,000 for married couples.
Individuals with adjusted gross incomes of $80,000, heads of household with $120,000, and married couples with $160,000 had their payments phased away, while married couples with $160,000 had their payments completely cut off.
Who might still be eligible for additional funds?
Some people may be qualified for the full $1,400 payment or extra partial payments, depending on their circumstances. A $1,400 payout may be available to parents who welcomed a child into their family in 2021. Families who added a dependent to their families in 2021, such as a parent, niece or nephew, or grandchild, may be eligible for an additional $1,400.
Additionally, if their 2021 adjusted gross incomes are below the limits for full payments, those whose earnings have declined may now be eligible for the money. They may be eligible for partial payments if their income falls below the phase-out limits.
People who don’t usually file tax returns and haven’t done so yet must do so this year to get any potential payments.
The money you are qualified for from the Recovery Rebate Credit will either be used to lower the amount of federal taxes you owe or will be included in your refund.
What you need to know about claiming your Recovery Rebate Credit
A reminder: When you file, the IRS will not automatically compute any Recovery Rebate Credit amount you may be eligible for.
“To receive this money, individuals must claim the 2021 Recovery Rebate Credit on their 2021 income tax return,” the IRS stated in its fact sheet. More information on the Recovery Rebate Credit can be found on the agency’s website to check if you are qualified for a payout.
You can use the IRS’ Free File program to file your federal tax return for free if you have no income or up to $73,000 in income.
According to the IRS, persons who have already received their third stimulus checks do not need to provide information on those payments in their 2021 taxes. According to the IRS, if you still haven’t received a first or second stimulus check from the government in 2020, you’ll have to file a 2020 tax return rather than claim the money on your 2021 return.