Most of these Americans are ineligible to receive the third round stimulus payment, as provided for in the “American Recovery Plan.”
The new eligibility levels for the third $1,400 stimulus check contained in the “Recovery Plan” reduce the number of people eligible for the payment, albeit minimally.
President Joe Biden endorsed the change to the bill in the Senate in order to get the $1.9 trillion stimulus proposal passed promptly in the federal Congress. Biden agreed that the phase-out to zero would be implemented faster than the previous version that passed the House of Representatives, and that means fewer people eligible for the third $1,400 check.
Even with the new restrictions, federal officials – including the President – have estimated that 85% of U.S. households will receive economic stimulus payments under the third round.
Americans who do not fall within the new applicable thresholds based on AGI or adjusted gross income will not receive the stimulus check from the Internal Revenue Service (IRS).
The IRS has had to adjust its calculations before proceeding with the distribution of the third check in the middle of the tax season. The first direct deposits with payments of $1,400 and the same amount for each dependent were released on Wednesday, March 17, the date chosen by the IRS for Nacha and the banks to do the same.
The issue of the most targeted income level in the new law is key to knowing who will not receive the stimulus check.
Individuals earning $80,000 or more per year
Individual tax filers earning more than $80,000 per year will not receive stimulus funds under the new guidelines.
Head(s) of household earning $120,000 a year or more
Those who file an IRS tax return as head of household with income of $120,000 or more are not eligible to receive stimulus payments.
Couples earning $160,000 a year or more
Married couples who report joint income of $160,000 or more to the IRS will also not receive funds for the third stimulus check.
Undocumented individuals who are not married to citizens or resident aliens
Under Biden’s stimulus package, only undocumented immigrants in mixed marriages, where one spouse is a citizen or is allowed to be in the country (resident alien with a Social Security number) and the other has an Individual Taxpayer Identification Number (ITIN), will indirectly benefit from the stimulus payments. In the case of these couples, only the person with the Social Security number will receive the stimulus check for the family.
These households are also eligible for the $1,400 payment for each U.S.-born dependent.
Americans who are not required to file taxes with the IRS due to low or no income may not receive the payment unless they file their tax information this year.
In some cases, the IRS has already obtained data on these individuals through the “Non-filers” online tool available through Nov. 21.
If you are eligible for payments and have not done the due diligence to provide your personal information to the agency, you most likely will not receive the $1,400 stimulus check.
Ideally, you should file a simplified tax return as soon as possible even if you are not generating income so that the office can process the payment. On the same document, you can claim any credit due from the past two rounds of payments of $1,200 and $600, respectively.