The increase in the amount that next of kin can receive is a big change with this third round of incentive payments. For the first round of payments, checks were $500 per eligible dependent under 17 years of age. The amount was $600 per eligible dependent child for the second round. But this time around, adult dependents will be eligible for incentive payments for the first time. That change could be a major financial boost to families who serve as caregivers for their loved ones or who have students over the age of 16 in college or pursuing other educational opportunities. AARP has strongly advocated making adult dependents eligible for stimulus checks during each round of proposed relief legislation.
I earned less in 2020 than in 2019. How will that affect my third incentive benefit?
For the first two rounds of payment, the Treasury Department typically used information from 2019 tax returns—or in some cases, 2018 returns for the first round of payments if 2019 returns had yet to be filed—to determine how many individuals and families are eligible. came in incentive payments.
Under the new legislation, the Treasury Department may use information from your 2019 or 2020 tax returns to determine whether you are eligible for a payment and how large it may be. But if you lost your job last year or otherwise saw a significant drop in your adjusted gross income compared to 2019, you should file a 2020 return as soon as possible. The Treasury Department can use the more recent information to see if you qualify for a larger payment.
The third round of incentive payments could be released soon, now that the legislation has been signed. Again, if your income has fallen significantly in the past year, you should file your 2020 tax return as soon as possible.
What about Social Security recipients and other federal beneficiaries?
During the first round of incentive payments last year, one of the big questions was what people who haven’t filed 2018 or 2019 tax returns should do to get their incentive payment, especially people for whom Social Security benefits were the primary source of income. Now that the government has gone through the payments process twice already, it has gone more smoothly with incentive payments for non-filers.
Under the third round of payments legislation, you do not need to take any additional steps to receive the third incentive payment if you are already receiving federal benefits through one of these programs:
- Social security Old-age pension, survivor’s or disability insurance
- Supplemental Security Income (SSI)
- Railway pension benefits
- Veterans Affairs (VA) Benefits
AARP played a big role last year in getting the government to automatically issue incentive payments to recipients of Social Security, SSDI, SSI, VA, and other federally administered benefits. AARP also called for the maximum amount of the first round of stimulus to be $1,200 instead of $600, the limit considered in one proposal.
When will I receive my stimulus payment?
The IRS had sent 127 million payments worth $35 billion by March 30, 2021. ready April 7, the IRS says. The IRS says it will send incentive payments to Veterans Affairs (VA) benefit recipients by mid-April, who normally don’t file tax returns. Individuals who are dependent on VA, Social Security, SSI, or Railroad Retirement Board beneficiaries will be required to file a 2020 tax return to receive their incentive payments.
If the Treasury department has registered your bank account information, you will most likely receive your payment as a direct deposit. If the department doesn’t have that information, you may receive the payment as a paper check or debit card, so keep an eye on your mail.
Kenneth Terrell covers Employment, Ageism, Employment and Jobs, Careers and Congress for AARP. He previously worked for the Education Writers Association and US news and world report, where he reported on government and politics, business, education, science and technology, and lifestyle news.