The United States of America is said to be a land for all, and President Joe Biden has been accommodating the residents of the States ever since his tenure began. Among other actions that he took during his tenure, one major step that has proven to assist various individuals and families all over the states is that of the American Rescue Act Plan of 2021.
What is the American Rescue Act Plan?
During the last couple of years, many individuals worldwide faced financial losses due to COVID and the lockdown. According to surveys, 1 in 10 Americans will never financially recover from the crisis COVID brought on.
President Joe Biden, aware of this dilemma faced by the residents of his nation, assisted them by initiating the American Rescue Plan of 2021 on March 11th. According to this act, there is an amount of around $1.9 trillion, which will be the designated coronavirus rescue package. As a result of this act, millions and millions all over the States can get a chance to recover from the horrible economic and medical consequences of the pandemic.
The Third Stimulus Check
According to the American Rescue Plan, qualified people will get a “base amount” of $1,400 in the third stimulus check. Unlike other schemes, this one has been implemented immediately to help residents of the States cope with the loss they have incurred in the past two years. According to official reports, millions of people have already received their fair share of the third stimulus check amount. The process of receiving this amount has been different for everyone as some have received it in the form of a paper check, while others have received a direct deposit of the amount they were eligible for.
Eligibility Status for Third Stimulus Check
The eligibility for the third stimulus check is one of the most important elements to keep in mind since not everyone is eligible to receive the amount allotted by the government. All tax-paying individuals can receive the third stimulus check with a social security number. There are further requirements to keep in mind that focus on the income level of eligible people.
Amount Set for Third Stimulus Check
There is a limit set for the maximum amount to be reimbursed for the third stimulus check. This amount totals up to $1,400. This amount is allotted for all individuals eligible for the check on an individual level.
However, for couples who file their taxes jointly, the amount for the check is around $2,800. This indicates that both the individuals who are filing the taxes will receive the amount of $1,400 separately. As a result, it is also possible that if there are four or five eligible individuals, the amount they receive for a third stimulus check can be as high as $5,600 or $7,000.
Social Security Numbers
Social security number is another element that marks some people as eligible for the check while others are non-eligible. To receive the check, it is essential that at least any of the two people in a marriage have a valid social security number. The exception to this rule only comes in the case of people in the military. If even any ONE spouse happens to be a member of the military and one of them has an ITIN, even then, both the individuals will be eligible for the check irrespective of the Social Security Number status.
Furthermore, if both the spouses have ITINs but their children have SSNs, this couple would also be eligible to receive the check on their children’s behalf.
Income Eligibility Criteria for Third Stimulus Check
The income requirements for receiving the third stimulus check are as follows.
· Single Adult Tax Filers
All adults for the United States who are single and earn as much as $75,000 or less than that amount as their adjusted gross income will receive the whole around of $1,4000. This gross income has to be shown in their tax returns for 2019 or 2020.
· Couples Filing Taxes Jointly
The income level eligibility criteria are different for couples who happen to be filing their taxes jointly; for all these individuals, they must have earned around $150,000 as income or less than that as their adjusted gross income. Individuals who fall under their income level can receive the complete amount of $2,800 from the government.
As expected, the size of the third stimulus check received by people who earn more than the amounts mentioned above will decrease. It will keep decreasing until, at one point, higher earners with a more than average gross adjusted income will not receive anything and will not be eligible for the check.
Income Levels Not Eligible for Third Stimulus Check
To be exact, single tax filers who earned more than the amount of $80,000 during 2019 or 2020 cannot receive the third stimulus check. Moreover, couples filing taxes jointly with an adjusted gross income level of $160,000 or higher will not be eligible to receive the third stimulus check.
Status of Checks Deposited and Cause of Delay
According to reports by the IRS, a total of 127 million payments have already been made as of March 30th, 2021. A total of $35 billion has been given to the individual through these payments. Moreover, further payments for those individuals who didn’t file their taxes for 2019 or 2020 were completed by mid of April. A total of 390 billion worth of payments have been completed till June 3rd.
The Treasury Department is constantly initiating the process and depositing checks of individuals whose bank information is present with the department. However, if the department does not have the required amount of bank information, they will be sending out the payment in a paper check or through a debit card. This so one reason why some individuals still haven’t received their payments, as the mail process can take some time.
The third stimulus check can be claimed for individuals who have died either right on January 1st, 2021, or right after that. Since it is not counted as income in the eyes of the IRS, no amount of tax has to be paid on any of the stimulus checks.
