The IRS started issuing the third round of Economic Impact Payments. No action is needed by most taxpayers. The IRS will issue payments automatically to you by direct deposit and through the mail as a check or debit card.
Many people will receive the third payment the same way they received the first and second Economic Impact Payments. Because these payments are automatic for most eligible people, there’s no need to contact Loeffler Financial Group, or the IRS. Individuals can check the Get My Payment tool on IRS.gov for status of their third stimulus payment.
Highlights of the third Economic Impact Payments
In general, most people will get $1,400 for themselves and $1,400 for each qualifying dependent claimed on their tax return. As with the first two Economic Impact Payments, most people will receive their third payment without having to take any action.
The third Economic Impact Payment is based on the taxpayer’s latest processed tax return from either 2020 or 2019. This includes anyone who successfully registered at IRS.gov using the agency’s Non-Filers tool last year or submitted a simplified tax return. If the IRS received and processed a taxpayer’s 2020 return before issuing someone’s third Economic Impact Payment, the amount is based on the 2020 return.
Those who received the first or second payment but don’t receive a payment by direct deposit will generally receive a check or a prepaid debit card, referred to as an EIP Card. The IRS will not add the third payment to an existing EIP card that people received for the first or second round of stimulus payments.
Please note: Under the new law, the IRS can’t apply the third Economic Impact Payment to past-due federal debts or back taxes.
Who is eligible for the third Economic Impact Payment
Generally, U.S. citizens or U.S. resident aliens are eligible for the full amount of the third Economic Impact Payment if they and their spouse, if they’re filing jointly, are not a dependent of another taxpayer and have a valid Social Security number and their adjusted gross income on their tax return does not exceed:
- $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.
- $75,000 for eligible individuals using any other filing statuses, such as single filers and married people filing separate returns.
The payments phase out — or reduce — above those AGI amounts. This means taxpayers will not receive a third payment if their AGI 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.
- $80,000 for eligible individuals using other filing statuses, such as single filers and married people filing separate returns.
To schedule an appointment, call us today at 717-393-7366 or book online (virtual appointments and in-person appointments daily). Loeffler Financial Group is here for you!