Third Stimulus Payment: What You Need to Know
Published March 12, 2021
The $1.9 trillion American Rescue Plan Act was signed into law by President Joe Biden on Thursday, March 11. It guarantees millions will receive a third round of direct stimulus payments, and the bill also extends federal unemployment insurance benefits through Sept. 6, 2021 and increases the current child tax credit for 2021.
How much are the third round of stimulus payments?
The third economic stimulus payment is up to $1,400 per individual and dependent.
| Taxpayer | Adjusted Gross Income | Payment Amount |
|---|---|---|
| Single | Up to $75,000 | $1,400 |
| Heads of Household | Up to $112,500 | $1,400 |
| Married Couples | Up to $150,000 | $2,800 |
| Single, Heads of Household, and Married Couples with Dependents | (refer to corresponding AGI above) | $1,400 per dependent |
Unlike the previous two economic impact payments (EIP), there is now a steep income phase-out.
The third round of stimulus amounts begin to decrease for every $1,000 over the above adjusted gross incomes, with payments decreasing to zero for single filers at $80,000, heads of household at $120,000 and married couples at $160,000 adjusted gross income. Taxpayers will receive the same amount for each dependent.
To see how much relief you may receive from the third economic impact payment, try this calculator.
When will I get my stimulus payment?
Americans were assured that payments would start being disbursed within the month of March. Press Secretary Jen Psaki said, however, that the first round of payments will begin the weekend of March 12.
Taxpayers can track the status of their payments with the IRS Get My Payment tool.
Neighborhood Credit Union receives files (direct deposits) from the Federal Reserve once a week and are processed as soon as possible. If you see that your direct deposit is pending, Neighborhood CU is unable to manually release funds from any direct deposits into your Neighborhood CU accounts.
How will I get my stimulus payment?
The payments will primarily be sent via direct deposit. If the IRS doesn’t have your direct deposit info, you may get a paper check or a pre-paid debit card in the mail.
If my direct deposit is pending, can you release the funds early?
No.
Neighborhood Credit Union is unable to manually release funds from any direct deposits into your Neighborhood CU accounts. Continue to monitor your account through the Online Banking portal or the MyNCU Mobile App for real-time updates to the status of your direct deposit.
Who qualifies for the third stimulus payment?
To be eligible, taxpayers must have a Social Security number and meet the income requirements detailed above.
Which dependents qualify for the third round of stimulus payments?
All dependents of eligible taxpayers will also receive a payment for the first time. That includes disabled adults, millions of college students, and elderly Americans. Mixed-status families (where some members have Social Security numbers and others do not) are also eligible, as they were for the second payment.
Those who owe child support should also not have any of their stimulus money withheld.
What tax year are the payments based on?
If you have not yet filed your 2020 tax returns, the payments will be based on your 2019 adjusted gross income. If you have filed your 2020 tax returns already, the economic impact payment will be based on your 2020 adjust gross income.
Are the payments taxed?
No.
Why would my payment be returned to the IRS or rejected?
If the EIP deposit was pending but did not post, then the deposit has been rejected due to either an invalid account number or a charged-off account.
A stimulus payment may be returned to the IRS if the direct deposit was sent to a closed account. If the member with the closed account still has a current savings account with Neighborhood Credit Union, we manually review these deposits and make every effort to post them to the open savings account.
Skyler has been a Marketing Content Specialist at Neighborhood Credit Union since 2019.
Who We Are
As an active part of the community for 94 years, Neighborhood Credit Union is a not-for-profit financial organization serving the state of Texas with branch locations in Collin, Dallas, Denton, Ellis, and Tarrant counties. With assets topping $1 billion, Neighborhood Credit Union has a continuously growing membership of over 60,000. For more information, call (214) 748-9393 or visit our homepage.