Starting this week, a third Economic Impact Payment (EIP) could be coming your way. With the passage of the American Rescue Plan, the federal government will be issuing checks.
This time, the amounts will be $1400 per individual, $2800 for married couples. The difference this time is that instead of receiving lower amounts for dependent children, families will receive $1400 per child. Another difference this time is that dependent college students, disabled adult children, or an adult parent will qualify for the $1,400 dependent payment (they didn’t last time).
To receive the full $1400, your income must be:
- Individuals: $75,000 or less
- Head of Household: $112,500 or less
- Married Couples filing jointly: $150,000 or less
There is a phase-out for incomes higher than this.
The amount you receive will be based on your income reported on your 2020 tax return. If you have not yet filed that, then it will be based on your 2019 tax return.
Like the last payments, these will be sent via direct deposit or via mail, based on the information you provided on your tax return.
There are some other tax changes offered by the American Rescue Plan. These include enhanced Child and Dependent Care Credits, a higher amount of unemployment income being excluded from gross income, and significant enhancement of the Premium Tax Credit. Stay tuned for more details!