Signed in early March, The American Rescue Plan Act included a third stimulus payment of $1400 per person.  (For example, a married couple with two children can receive up to $5600.)

This should be simple, and for most taxpayers it will be.  Though the payments are still being sent out, most eligible folks have already received their payments.  But alas, nothing in government processes is ever that smooth.  Consider:

The original stimulus payment was based on your 2019 tax return’s adjusted gross income (AGI).  If your 2019 AGI fell outside the below parameters, you likely did not receive a payment:

You will/should have received $1400 per eligible person if your 2019 modified AGI was:

  • $150,000 if married filing a joint return; or
  • $112,500 if filing as head of household; or
  • $75,000 if filing single or are married filing a separate return.

You will not receive any payment if your modified AGI exceeds:

  • $160,000 if married filing a joint return; or
  • $120,000 if filing as head of household; or
  • $80,000 if filing single or are married filing a separate return.

If your 2019 return did not generate the maximum $1400 per person payment, but your 2020 tax return’s AGI would have generated a larger stimulus, you are likely to receive an additional payment to make up the difference – the IRS is calling this a “plus-up payment”.  Note: To receive the “plus-up payment”, your 2020 return must be processed before August 16th (with some exceptions).  If your 2020 return is processed after that date, you will be required to wait until your 2021 return is processed.  Also note, like prior year stimulus payments, if your 2021 return reflects that you were paid too much, you will not be required to pay the excess stimulus back. 

How you receive your payments might be a bit of an adventure.  Some married couples have received their payments combined ($1400 multiplied by the number of eligible individuals).  Others have received two separate payments (one for each spouse). If they are separate payments, one spouse’s payment may come as a direct deposit and the other via mailed check. Each spouse should separately check the IRS’s “Get My Payment” tool using their own Social Security Number to see the status of their payments.

You will receive a letter from the IRS, Notice 1444-C, after the payment has been sent. Please keep this notice to provide us when you submit your tax material to us next year.

Very Important:  You must provide our office the exact amount you received for the third round of stimulus payments.  Any discrepancy between your number and what the IRS has on record will create a three month + delay in the processing of your 2021 return and the issuing of your refund!!!!!

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