Third Round of Stimulus Payments – What You Need to Know

Stay informed on third IRS stimulus check, unemployment benefits, and student loan forgiveness. Here’s what’s happening with the American Rescue Plan. We’ll continue to update this article as we learn more.

Blurred image of check with word stimulus stamped.

April 7, 2021 Update:

The Internal Revenue Service (IRS), the U.S. Department of the Treasury, and the Bureau of Fiscal Service are issuing a fourth batch of stimulus checks. Here’s a few details about payment recipients:

  • The Social Security beneficiaries who did not file a 2020 or 2019 tax return, and who did not use the Non-Filers tool last year. This also includes Social Security Retirement, survivor or disability (SSDI) beneficiaries.
  • Supplemental Security Income (SSI) beneficiaries.
  • Railroad Retirement Board (RRB) beneficiaries.
  • The fourth round of payments includes supplemental payments for recipients who received payments earlier in March based on their 2019 tax return, but are also qualified for a new or larger payment based on their recently processed 2020 tax returns.
    • Taxpayers that previously had no information to issue an Economic Impact Payment, but recently filed a tax return and qualified for an Economic Impact Payment. The IRS will continue issuing payments weekly to those in this category as they process 2020 and 2019 tax returns.

On April 14, 2021, the IRS says they will disburse payments to non-filer Veterans Affairs (VA) beneficiaries.

Please continue to check the IRS “Get My Payment” tool to see the status of your stimulus check. We urge you to visit government websites for the most accurate, detailed, and up-to-date information about your stimulus check. Here are a few resources to help:

Please remember the government will not contact you by phone, text message, or email about this payment. Be wary of fraudsters attempting to scam you out of your payment.

April 1, 2021 Update:

Taxpayers continue to receive millions of Economic Impact Payments from the IRS and Treasury Department. The government distributes payments through direct deposit, mail-in checks, and EIP debit cards.

Here’s a few updates if you’re checking on your payment’s status:

  • If you haven’t received your direct deposit, paper check, or debit card – visit the IRS website and use the "Get My Payment” tool to view the status of your payment.
  • Non-filer Social Security and federal beneficiaries – The Treasury Department says they will begin issuing payments this weekend for Social Security and other federal beneficiaries. The Treasury department says they will issue these payments electronically for payment on April 7, 2021.
  • Veterans Affairs (VA) benefit recipients – According to the IRS, they are reviewing data and will provide additional payment details soon. The IRS estimates that you can expect a payment mid-April if you receive benefits and don’t normally file a tax return. At a future date, the IRS plans to upload tracking information for these payments to their “Get My Payment” tool.
    • If you receive these benefits and file a tax return – the IRS said they distributed payments earlier in March.
  • For non-filers – the IRS says they are continuing to prepare and deliver stimulus payments for those eligible.

The way you received a payment previously may differ from the way you received a stimulus payment in the past.

March 12, 2021 Update:

Yesterday, President Biden signed the COVID-19 relief bill into law. Under the American Rescue Plan, eligible taxpayers can receive $1,400 in stimulus payments. Here’s what you need to know about your payment:

  • The IRS says they will initiate direct deposit payments this morning, for payment on March 17, 2021. Direct Deposit payments may appear as pending or provisional payments on your account before March 17, 2021, when they are officially available per the IRS.
  • Direct deposit to your bank account or a reloadable prepaid debit card is the fastest way to receive your payment, according to the American Bankers Association.
  • The IRS says they will begin processing mailed checks and prepaid cards today. The government will send prepaid debit cards via the U.S. Postal Service. As the government distributes a large number of checks, there are fixed capacity limits for mailing, so some recipients wait weeks for a check to be mailed.
  • The IRS also said they are working on updating its “Get My Payment” tool, which provides a status update for taxpayers who filed their 2019 or 2020 tax return with direct deposit. In addition, the IRS says they are currently updating the FAQs about economic impact payments to provide additional information to taxpayers and payment processors.

March 11, 2021 Update:

The House passed the latest COVID-19 relief bill yesterday, which includes $1,400 in stimulus payments. The bill goes to the White House, where it currently awaits President Biden's signature into law. The American Rescue Plan would also extend unemployment benefits, and Congress states they would like to extend unemployment benefits before they expire March 14, 2021, as well as tax relief for out-of-work employees. In addition, the bill would increase the current child tax credit for 2021, along with aid for state and local governments.

March 8, 2021 Update:

The Senate approved a $1.9 trillion Coronavirus Relief Bill in a vote of 50 to 49. The bill includes a round of stimulus payments in the amount of $1,400 to eligible recipients. The bill now moves back to the House of Representatives, where members are expected to vote on the amended version by Tuesday, March 9, 2021.

March 4, 2021 Update:

President Biden and Senate Leaders agreed to change the income restrictions for the stimulus checks on the latest Coronavirus relief bill.[1] The new proposed limits are:

  • Single filers with an annual income less than $75,000 to receive the full stimulus payment, and phasing out payments for those earning $80,000 and more.
  • Joint filers with an annual income of less than $150,000 to receive the full stimulus payment, but those earning more than 160,000 would not receive a check.
  • Those filing as Head of Household who make less than $112,500 would receive the full amount, and phase out payments for those earning more than $120,000.

The U.S. House of Representatives passed the American Rescue Plan for $1.9 trillion in stimulus aid to provide payments and extend unemployment benefits. The bill now passes on to the Senate for voting. Leaders in the House and Senate aim to submit the measure before March 14, 2021.[2]

The proposed plan would give direct payments in the amount of $1,400 to eligible individuals, including dependents of any age, and $2,800 to married couples filing jointly.

The Proposed American Rescue Plan Would Include [3]:

  • $1,400 stimulus payments for individuals, and $2,800 for couples filing jointly, subject to income limits
  • $400 a week in extra federal unemployment through September 2021
  • Rent and utility assistance from a $30 billion fund, and a grant program for restaurants

Who Qualifies for Receiving a Stimulus Payment?

People with Social Security numbers who meet certain income requirements are eligible.

The income limits are:

  • Eligible individuals earning between $75,000 and $100,000
  • Married couples filing jointly earning between $150,000 and $200,000
  • Head-of-household filers earning between $112,500 and $150,000

The amount is determined by your adjusted gross income on your 2019 tax return, unless the IRS processes your 2020 tax return prior to when distributions are sent.

Also different from the previous stimulus payments, is taxpayers with an adjusted gross income less than $75,000 to get the full $1,400 payment, including dependents of any age. Previous payments did not include money for dependents age 17 and older, but rather included smaller amounts for children.

Those who don't have to file income tax returns may receive payments. The IRS has a tool for non-filers to gather information on these recipients. In addition, Social Security retirement, disability beneficiaries, and Supplemental Security Income recipients are likely eligible for payments.[4]

What is the Timeline for Receiving a Stimulus Payment?

The President must sign the bill into law after the House and Senate pass it. Once the bill becomes law, stimulus checks would likely begin to deposit in accounts within a few days.[5] The Treasury Department previously initiated direct-deposit for the first and second stimulus payments using information on your tax return. The Treasury Department mailed checks and debit cards to recipients in the following weeks.

The current weekly addition of $300 in unemployment benefits is set to expire March 14, 2021. Lawmakers say they are on track to prevent additional benefits from expiring before that date, so it’s possible payments would be available in mid-March.[3]

What About Student Loan Forgiveness?

Lawmakers proposed a separate plan to forgive $50,000 of federal student loan debt per person. This would cancel out the debt of roughly 80% of federal student loan debtors.

We will continue to update this article as we receive information. We encourage you to consult government websites for the most up-to-date information.

Sources:

Third Economic Impact Payment, IRS.gov

IRS projects stimulus payments to non-filer Social Security and other federal beneficiaries will be disbursed later this week, U.S. Department of the Treasury

Coronavirus Economic Impact Payments, ABA

[1] Democrats narrow who gets $1,400 checks in COVID-19 relief bill, Los Angeles Times

[2] House passes $1.9 trillion Covid relief bill, sends it to Senate, CNBC

[3] Biden stimulus update: When is my third IRS check, unemployment, or student loan forgiveness coming?, Fast Company

[4] All your questions about a 3rd stimulus check answered, Business Insider

[5] Third stimulus check update: House Democrats’ new plan wouldn’t lower eligibility for $1,400 checks, Fortune

Third stimulus check update: Biden backs full $1,400 payment if you make up to $75,000. Here’s the latest., NJ

The information provided in these articles is intended for informational purposes only. It is not to be construed as the opinion of Central Bancompany, Inc., and/or its affiliates and does not imply endorsement or support of any of the mentioned information, products, services, or providers. All information presented is without any representation, guaranty, or warranty regarding the accuracy, relevance, or completeness of the information.