Stimulus Payment Summary

With the IRS in the process of issuing a third round of checks to many taxpayers, we thought it might be helpful to summarize each of the stimulus payments in one place. The three different checks each had their own rules surrounding phaseouts and and who qualifies. If you did not qualify for the first two payments based on your tax return on file at the time, you might be eligible for a credit with your 2020 return. The third payments going out now will also be based on your most recently filed tax return. If your 2020 tax return shows lower income than 2019 but is filed after the initial checks are issues, the IRS will re-evaluate your eligibility prior to September 1, 2021.  As with the first two checks, if you still don't receive anything, you will have the option to claim a credit on your 2021 tax return, if your 2021 income puts you below the phaseout thresholds. 

Here is a summary of the stimulus payments:

Payment #1 

• Issued sometime after April 2020
• $1,200 per adult
• $500 for each child under the age of 17
• Phaseout based on AGI:
  • MFJ = $150,000 - $198,000
  • HOH = $112,500 - $136,500
  • Single = $75,000 - $99,000
• IRS Website
• Calculator

Payment #2

• Issued in early 2021
• $600 per adult
• $600 per qualifying child (Only under 17)
• Phaseout based on AGI:
  • MFJ = $150,000 - $174,000
  • HOH = $112,500 - $112,500
  • Single = $75,000 - $87,000
• IRS Website
• Calculator

Payment #3 

• Issued beginning mid-March 2021
• $1,400 per adult
• $1,400 per dependent child and adult dependent (no age 17 limitation)
• Phaseout based on AGI:
  • MFJ = $150,000 - $160,000
  • HOH = $112,500 - $120,000
  • Single = $75,000 - $80,000
• IRS Website
• Calculator

If you have any questions on these payments or whether you might qualify for a credit on your 2020 tax return, feel free to reach out to us.

-Chris Benson, CPA, PFS

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