Individuals who satisfy specific eligibility criteria are entitled to receive the second round of economic impact payments, commonly known as “stimulus checks.” These criteria are determined by the provisions outlined in the Coronavirus Aid,Relief,and Economic Security Act (CARES Act) of 2020, as amended by subsequent legislation.
To determine eligibility, the thresholds established by the Adjusted Gross Income (AGI) are crucial. Eligible individuals who file as single taxpayers must have an AGI below $80,000. For married couples filing jointly, the AGI threshold increases to $150,000. Heads of households have an AGI limit of $120,000 to be eligible.
Furthermore, dependents, such as children and other qualifying individuals claimed on tax returns, also influence eligibility. For the second round of checks, most dependents under the age of 17 are eligible unless they can be claimed as dependents on someone else’s tax return. However, unlike the first round of checks, dependents over the age of 17 are generally not eligible for the second round of payments.
Other factors that determine eligibility include citizenship or residency status. U.S. citizens, resident aliens, and certain non-resident aliens who meet the income requirements are eligible to receive the payments. Individuals who are not U.S. citizens or resident aliens are generally not eligible.
For individuals who satisfy all the eligibility criteria, the amount of the second round of payments varies based on their filing status and income. Single filers with AGIs below $75,000 and married couples filing jointly with AGIs below $150,000 are eligible for the full amount of $600. Individuals with AGIs above these thresholds will receive reduced payments based on a formula specified in the CARES Act.
Income Eligibility Requirements for Second Round of Stimulus Checks
The second round of stimulus checks, also known as Economic Impact Payments, were approved as part of the Consolidated Appropriations Act of 2021. To qualify for these payments, individuals must meet certain income eligibility requirements, which differ depending on filing status.
The following are the income eligibility requirements:
- Single: Individuals with an adjusted gross income (AGI) of $75,000 or less are eligible for the full payment of $600.
- Head of Household: Individuals with an AGI of $112,500 or less are eligible for the full payment of $600.
- Married Filing Jointly: Individuals with an AGI of $150,000 or less are eligible for a payment of $1,200.
For each dependent claimed on your tax return, an additional $600 is issued. The table below summarizes the payment amounts and income limits:
| Filing Status | AGI Limit | Payment Amount (Single) | Payment Amount (Joint) |
|---|---|---|---|
| Single | $75,000 | $600 | N/A |
| Head of Household | $112,500 | $600 | N/A |
| Married Filing Jointly | $150,000 | N/A | $1,200 |
Individuals who exceed the income limits will receive a reduced payment or no payment at all. The phase-out for individuals begins at $80,000 for single filers, $120,000 for heads of household, and $160,000 for married couples filing jointly. The payment is reduced by $5 for every $100 of income above the phase-out threshold.
Dependent Qualifications for the Second Round of Stimulus Checks
To qualify as a dependent for the second round of stimulus checks, individuals must meet the following requirements:
- Be a U.S. citizen, resident alien, or non-resident alien who is a qualifying relative of a U.S. citizen or resident alien
- Be under the age of 19, or under the age of 24 and a full-time student
- Not be claimed as a dependent on someone else’s tax return
Dependent for tax purposes does not mean that the person has to be living at home with you. Dependents must pass the qualifying relative test. To qualify as a qualifying child or qualifying relative, the person must meet one of the following tests:
- Relationship test: The person must be the taxpayer’s spouse, child, grandchild, stepchild, foster child, sibling, half-sibling, stepbrother, stepsister, parent, grandparent, stepparent, or in-law.
- Residency test: The person must have lived with the taxpayer for more than half of the year. (Temporary absences due to special circumstances do not count.)
- Support test: The taxpayer must have provided more than half of the person’s support for the year.
| Relationship | Relationship Test | Residency Test | Support Test |
|---|---|---|---|
| Child | Yes | Yes | Yes |
| Stepchild | Yes | Yes | Yes |
| Grandchild | Yes | No | Yes |
| Great-grandchild | No | No | Yes |
| Spouse | Yes | Yes | N/A |
| Parent | No | No | Yes |
| Grandparent | No | No | Yes |
| Sibling | Yes | Half of year | Yes |
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Who Qualifies for the Second Round of Stimulus Checks
The second round of stimulus checks, which are part of the American Rescue Plan Act of 2021, are being distributed to eligible individuals. Here are the details:
Eligibility Criteria
To qualify for the second round of stimulus checks, you must meet the following criteria:
- Be a U.S. citizen, U.S. national, or resident alien
- Have a valid Social Security number
- Not be claimed as a dependent on someone else’s tax return
- Meet the income eligibility requirements
Income Eligibility Requirements
| Filing Status | Phase-out Income |
|---|---|
| Single | $75,000 |
| Married Filing Jointly | $150,000 |
| Head of Household | $112,500 |
Deadlines and Distribution
The second round of stimulus checks are being distributed on a rolling basis. The IRS has stated that most eligible individuals will receive their payments by the end of April 2021. Here are the deadlines and distribution methods:
- Direct Deposit: Most individuals will receive their payment directly into their bank account by the end of April 2021.
- Paper Check: If the IRS does not have your bank account information, you will receive a paper check in the mail. Paper checks are being mailed out in batches, and the IRS estimates that all checks will be mailed by the end of April 2021.
- E-IP Card: If you do not have a bank account and do not receive a paper check, you will receive an E-IP Card, which is a prepaid debit card that you can use to access your stimulus payment.
Thanks for sticking with us as we covered the ins and outs of who’s getting a second round of stimulus checks. We know this is a lot of information to take in, so if you still have questions, don’t hesitate to check out our other articles on the topic. Also, don’t forget to swing by again soon for more up-to-date news and analysis on COVID-19’s impact on your finances.