Different Phase-Out Rate
Although the income levels at which third stimulus checks start to be phased out (i.e., reduced) are the same as the amounts used for the first two stimulus payments, the rate at which the phase-out occurs is different. As a result, you might not get a third stimulus check even if you received payments in one or both of the first two rounds.
More Money for Certain Families
One big change with third stimulus checks is that an extra $1,400 is tacked on to your payment for
any dependent in the family. For the first- and second-round payments, the additional amount allowed – $500 for first-round payments and $600 in the second round – was only given for dependent children age 16 or younger. As a result, families with older children, including
Second Stimulus Check Payments by Debit Card Are Coming (It s Not Junk Mail!)
By Rocky Mengle of Kiplinger |
You might be one of the approximately 8 million Americans who finds a debit card in their mailbox soon. If so, don t automatically think it s some sort of scam or junk mail. It might be the second stimulus check payment you ve been waiting for – just in the form of a prepaid debit card. The cards – called Economic Impact Payment Cards, or EIP Cards, by the IRS – will go to certain people who don t have bank information on file with the tax agency. Instead of mailing a paper check (which takes longer to process), the cards will be sent to the most recent mailing address on file with the IRS for those selected to receive them. EIP Cards are going to eligible recipients across all 50 states and the District of Columbia, but Americans in the western part of the country are generally more likely to get one.
Dependent College Students Won t Get a Second Stimulus Check
For both the first round of payments authorized by the CARES Act in March and the second round of stimulus checks included in the COVID-Related Tax Relief Act, anyone who could be claimed as a dependent on someone else s 2019 tax return (regardless of whether they re
actually claimed as a dependent) isn t eligible for the cash.
Unfortunately, that hits most college students hard. College students who were 23 or younger at the end of 2019 and who didn t pay at least half of their own expenses that year could be claimed as a dependent on their parents 2019 tax return. So, those students are out of luck when it comes to stimulus checks.
6 Money-Smart Ways to Spend Your Second Stimulus Check
By Sandra Block of Kiplinger |
Under a plan passed by Congress, millions of Americans will receive a second stimulus check in the coming weeks. Second-round payments will be for $600 per eligible person, plus an additional $600 for each child (use our Second Stimulus Check Calculator to see how much you ll get). Many families who have lost income during the coronavirus pandemic will need to use their checks to put food on the table or keep a roof over their heads. But if you re still fully employed and not financially distressed, consider putting your stimulus check to work.