Over the last month and change, the IRS has been busy. The agency has sent out over 2 million stimulus checks in that time, bringing the total of their third-round payments to a mind-boggling $400 billion.
Some may remember the announcement in March, coming on the heels of the American Rescue Plan Act, which freed up enough money for $1,400 a person. Among the recent checks were bonus payments to those who reported different earnings on their 2019 and 2020 taxes. The IRS issued payments to make up the difference, if necessary.
About half of the recent payments were a direct result of people simply filing their taxes. The IRS didn’t have these people on file before processing their tax forms. Once processed, their names hit the system, and boom, the checks flew.
The big question most are asking is who’s even eligible for the third round of payments. Brace yourselves… the threshold was lowered from single filers earning $100,000 or less to single filers earning $80,000 or less. Further, the full $1,400 is only available to single filers earning $75,000 or less. $80,000 earners got/will get a reduced amount.
For joint filing, simply double the previous figures, and there you go. Simple as that.
Of course, families are eligible for an additional $1,400 for every child under 17.
Who Doesn’t Get a Check?
Unfortunately, the American Rescue Plan Act only affords enough money for the folks who meet the parameters above. There are several barriers to being eligible.
For example, those without a Social Security number will be receiving a check. That includes nonresident aliens, extending to any non-citizen of the United States who does not have a green card. Following, for joint filers where one member of the household has a Social Security number, and the other does not, only half of the payment will be provided.
Finally, those who have Individual Taxpayer Identification Numbers should not expect to receive a stimulus payment any time soon.
How is the IRS Sending the Checks Out?
This is the source of most people’s confusion when it comes to stimulus payments. The IRS uses the information from tax returns for all of its payment processing. That means the only way you’re getting a direct deposit is if the direct deposit information is on file with your 2019 or 2020 taxes.
Otherwise, if you haven’t already received your check, there’s a pretty good chance it’s coming in the mail.
All of the information provided here can also be found via the IRS website itself. More importantly, you can go to Get My Payment to find out where your individual stimulus check is.