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Third Stimulus Check Income Limit: What You Need to Know
The third stimulus check is on its way, but there are income limits that will determine who qualifies for the full amount. If you're not sure if you meet the requirements, read on to learn more about the income limit for the third stimulus check.
Pain Points
Many Americans are struggling financially due to the COVID-19 pandemic. The third stimulus check is intended to provide relief to those who have been impacted by the economic downturn. However, the income limit for the check may leave some people wondering if they will qualify for the full amount.
Target
The income limit for the third stimulus check is $75,000 for single filers and $150,000 for married couples who file jointly. If you earn more than these amounts, your stimulus check will be reduced. The reduction is $5 for every $100 you earn above the income limit.
Summary
The income limit for the third stimulus check is $75,000 for single filers and $150,000 for married couples who file jointly. If you earn more than these amounts, your stimulus check will be reduced. The reduction is $5 for every $100 you earn above the income limit.
3rd Stimulus Check Income Limit: A Comprehensive Guide
Understanding the Income Limits
The third stimulus check, also known as the American Rescue Plan Act of 2021, was a direct payment made to eligible individuals to provide economic relief during the COVID-19 pandemic. The eligibility criteria included income limits, which varied based on filing status.
Income Limits for Individuals
- Single filers: Phase out begins at $75,000, no payment over $80,000
- Head of household: Phase out begins at $112,500, no payment over $120,000
- Married filing jointly: Phase out begins at $150,000, no payment over $160,000
Income Limits for Dependents
Each dependent under the age of 18 on tax returns qualified for a $1,400 payment, regardless of the income of the qualifying taxpayer.
Phase-out Calculations
For individuals and married couples filing jointly, the amount of the stimulus check gradually decreased as income exceeded the threshold amounts. The phase-out rate was $5 per $100 of income earned above the limit.
Exemptions and Exceptions
Certain individuals were eligible for stimulus checks even if their income exceeded the limits. These exceptions included:
- Social Security recipients
- Veterans
- Non-resident aliens with valid Social Security numbers
How to Check Your Eligibility
The IRS website provides an online tool called the "Get My Payment" tool that allows individuals to check their eligibility and payment status. Alternatively, taxpayers can refer to their 2020 tax return to verify their income and filing status.
Impact on Tax Refunds
The third stimulus check was an advance payment on the 2021 Recovery Rebate Tax Credit. Individuals who received more than the amount they were entitled to may have their tax refunds reduced in 2023.
Additional Relief Measures
In addition to the stimulus checks, the American Rescue Plan Act included other financial assistance measures, such as:
- Extended unemployment benefits
- Child Tax Credit
- Rental assistance
Conclusion
The third stimulus check provided vital financial relief to millions of Americans during the COVID-19 pandemic. Understanding the income limits and phase-out calculations is crucial for determining eligibility. By carefully reviewing the guidelines and utilizing available resources, individuals can maximize their access to these benefits.
FAQs
1. What is the maximum income I can earn to receive the full stimulus check?
- Single filers: $75,000
- Head of household: $112,500
- Married filing jointly: $150,000
2. How much of my stimulus check will I lose if I earn above the limit?
- $5 for every $100 of income earned above the threshold.
3. Are there any exceptions to the income limits?
- Yes, certain groups, such as Social Security recipients and non-resident aliens, may still be eligible.
4. How can I check my eligibility for the third stimulus check?
- Use the IRS "Get My Payment" tool or refer to your 2020 tax return.
5. What impact will the stimulus check have on my tax refund?
- You may receive a reduced refund if you received more than you were entitled to.