Hi Neighbors,
The American Rescue Plan recently authorized a third round of stimulus checks, or Economic Impact Payments (EIPs) to aid our economic recovery. No action is needed by the vast majority of taxpayers to receive their EIP, but I also recognize that the Internal Revenue Services (IRS) distribution of EIPs has not come without challenges. This has resulted in some eligible individuals missing one, two, or all three rounds of payments. That is why I want to provide you with accurate information about EIPs and the IRS’s solution to obtaining those missing payments:
What Is An Economic Impact Payment?
The bipartisan law that passed in March 2021 authorized a new round of $1,400 economic impact payments (EIP). While millions of payments have already been sent, I am hearing from folks that may have not received theirs.
If you didn’t receive your earlier $1,200 or $600 payment from 2020, or have not yet received the $1,400 from 2021, you may still be eligible. Below you will find information about how you can get yours, and what kind of help may be available.
Check Your EIP Status
Most people don’t have to do anything to receive their EIP. Many of these payments have already been distributed via direct deposit into people’s bank accounts. Direct deposits are made based on the most recent tax filing information, including 2020 if the return has been processed.
Are You Eligible?
U.S. Citizens are generally eligible for $1,400 per individual with a valid Social Security number (SSN) or $2,800 for married couples filing a joint return if both spouses have a valid SSN or if one spouse has a valid SSN and the other was an active member of the U.S. Armed Forces at any time during the taxable year. U.S. Citizens are also eligible for another $1,400 per qualifying dependent with a valid SSN or Adoption Taxpayer Identification Number issued by the IRS.
This is the first round of EIPs for which adult dependents 17 and older are eligible. The taxpayer claiming the dependent still must meet the income requirements to be eligible for the payments. This group includes:
- High school students 17 or older claimed by someone else
- College students claimed by someone else
- Elderly adults claimed by someone else
- Disabled adults claimed by someone else
Payments are reduced for people with higher incomes. This applies to individuals who have an adjusted gross income of $75,000 or more, $112,500 for heads of households, or $150,000 for married couples who file jointly. Due to new income limitations, some individuals won’t be eligible for the third payment even if they received a first or second EIP or claimed a 2020 Recovery Rebate Credit.
People who are not typically required to file a tax return – including Social Security beneficiaries, railroad retirees, and people who receive veterans’ benefits – are also eligible to receive an EIP. Most who fall into these categories do not need to take any additional action to receive one. The majority of Social Security recipients who do not file taxes should receive their payments by April 7th, 2021.
How Are EIPs Sent Out?
Those eligible for an EIP may have received theirs in one of three ways: as a direct electronic deposit to your bank account, through the U.S. Postal Service (either as a check or a prepaid VISA debit card), or by claiming it on your 2020 tax return.
- Electronic direct deposit to a bank account: Many EIPs have already been sent via direct deposit.
- Mail – Prepaid VISA debit cards: Some have received their EIP in the mail. The IRS reported they began sending 8 million EIPs via prepaid VISA debit card. Please watch your mail carefully if you believe you may be in this group. You will have the option of transferring the funds from the card to a bank account, or to access cash using the card. You will be able to activate your card by calling 1-800-240-8100 and providing the last six digits of your Social Security number. If you believe you may have lost or threw it away by accident, you may also call 1-800-240-8100 for assistance in getting a replacement.
- Mail – Checks: In addition to prepaid VISA debit cards, some folks may instead receive their EIPs in the mail as a check. The Department of the Treasury reports that some people who received a paper check for their first EIP may instead receive a card this time. Likewise, some may also instead receive a check now instead of card.
- Mail – Troubleshooting: It is possible that some people may not receive their EIPs in the mail after they’ve been sent. For instance, if you moved and the IRS doesn’t have your new address, or the EIP was lost or stolen. You can learn more about how to address these issues here.
What If I Never Received My First or Second EIP?
If you were eligible for either of the first two EIPs but didn’t receive it, or didn’t receive the full amount you were owed, you can still take action to receive it. You can get your EIP by claiming the Recovery Rebate Credit on your 2020 income tax returns. The Recovery Rebate Credit is a tax credit against your 2020 income tax. Generally, this credit will increase the amount of your tax refund or decrease the amount of the tax you owe. For more information about the method of delivery or errors on your payments, please visit the IRS Website. You can also read the IRS’ April 1 update here.
For people who don’t file taxes, you may be eligible to claim the credit by filing a 2020 1040 or 1040-SR for free using the IRS Free File program. These free tax software programs can be used by people who are not normally required to file tax returns but are eligible to claim the credit. Instructions for both forms include worksheets to help determine how much you’re eligible for:
- Learn more about the 2020 Form 1040, U.S. Individual Income Tax Return
- Learn more about the 2020 Form 1040-SR, U.S. Tax Return for Seniors
As of now, the IRS has not provided guidance on what to do if there was an error in the distribution or amount of the third stimulus payment. Updated information on EIP distribution, including FAQs, can be found here.
Do You Have More Questions Or Need Help?
- Find frequently asked questions and answers here
- Visit www.irs.gov/eip to find more information about EIPs
- Call the IRS Taxpayer Assistance Center in Bloomington for help at (763) 347-7509 to speak with staff, get further assistance, or schedule an appointment
- Call the IRS EIP hotline at 1-800-919-9835
- Reach out to my office in Minnetonka at (952) 656-5176 to ask questions and see if we can direct you to additional resources
Keep the faith and keep in touch,
Dean Phillips
Member of Congress