On March 11, 2021, Presiden Biden signed the American Rescue Plan into law. This federal legislation fulfills President Biden’s promise to provide $2,000 in direct relief to individuals and working families. Americans will see stimulus checks of $1,400 per person, following the $600 down payment that was enacted in December 2020.
The following income threshold will determine which individuals receive the full $1,400 payment:
- Single filers with incomes up to $75,000, head of household filers with incomes up to $112,500, and joint filers with incomes up to $150,000 will each receive the full payment of $1,400.
- The direct payment will completely phase out for single filers making $80,000, head of household filers making $120,000, and joint filers making $160,000.
The IRS will use your 2020 income filings to determine eligibility. If you haven’t filed yet, the IRS will use your records from 2019. The IRS is advising everyone to file electronically so your returns will be processed quicker. NOTE: A new retroactive provision in the American Rescue Plan makes the first $10,200 of 2020 unemployment benefits nontaxable. If you’ve already filed a 2020 tax return do not file an amended return at this time. The IRS will issue additional guidance.
If you haven’t received all or part of your first two stimulus checks but you think you qualify for those payments, you can claim the Recovery Rebate Credit on your 2020 federal tax return.
Unlike previous stimulus checks, adult dependents (those who are 19-24, retirees, or adults with disabilities who rely on another person for more than half of their expenses) are now eligible for payments, as long as the filer who claims them as a dependent meets the income threshold eligibility requirements. Previously, only dependents under 17 were eligible. The check will be sent directly to the filer who claims the dependent, not the dependent.
Click here to track your stimulus check.