Note: Netspend is not a tax advisor or CPA. The knowledge in this post is general information and should not replace the advice of a tax professional. For more information, please reach out to a tax professional in your area.
A third round of stimulus checks is included in the $1.9 trillion coronavirus relief package. Here is more information on those payments:
When are the third stimulus payments anticipated to go out?As soon as the bill is signed into law, the IRS could begin delivering checks within days to one week. Based on the timeline of the previous stimulus checks, this could be as early as the weekend of March 13.
How much will the third stimulus payment be and who gets one?For the third round of payments, eligible individuals who make $75,000 or less will receive $1,400, and married couples who make up to $150,000 will receive $2,800. Eligible taxpayers will also receive an additional $1,400 for each dependent.
The IRS will base the amount off of your most recent tax return. If you made less in 2020 than you did in 2019, you may consider filing your 2020 tax return in order to have your stimulus based off of that income.
|Adjusted Gross Income:||$75,000 or less||$75,001-$79,999||$80,000+|
|Stimulus Amount:||$1400||Subtract $5 for every $100 over $75k you earn||Not Eligible|
MARRIED JOINT FILING COUPLES
|Adjusted Gross Income:||$150,000 or less||$150,001-$159,999||$160,000+|
|Stimulus Amount:||$2800||Subtract $5 for every $100 over $150k you earn||Not Eligible|
DEPENDENTSIf you claim a dependent on your tax return, you may receive up to $1400 for each one.
Yes, all dependents of eligible individuals or couples will qualify for this round of stimulus. This is a big difference between the previous stimulus payments. Regardless of age, under the current bill, all dependents of eligible individuals will qualify for the additional payment of up to $1400 per dependent. This includes eligible families with children over 16 years of age (the previous cutoff), college students age 23 or younger, and elderly parents living with the eligible person claiming them.
Will all dependents qualify for the extra $1400 payment?How will the IRS know where to send my payment?The IRS will send payments electronically through direct deposit to as many people as possible since that’s the fastest way to deliver the money. The current version of the bill states the IRS can direct deposit third round stimulus to the account used to receive your most recent tax refund or make a tax payment.
The IRS could also send out your third stimulus payment on a prepaid card or by check. If you already have a prepaid card from the IRS for previous payments, you will get a new card if the IRS decides to send your third stimulus payment in this form.
Will the third stimulus payment be taxed?As with the first two payments, your third payment should not be included in your taxable income.
What if I still haven’t received my other stimulus payments?If you are still waiting on either of the other two stimulus payments, you may need to file your 2020 tax return and claim the Recovery Rebate Credit. You can find more information on this process from the IRS here.