Overview: This article details the third stimulus check under the American Rescue Plan, including eligibility, payment amounts, and calculation methods.

Your Guide to the Third Stimulus Check

A significant third round of economic impact payments has been finalized. Shortly after taking office, President Biden introduced the American Rescue Plan, a comprehensive relief bill. Following approval in the House of Representatives, the bill underwent revisions in the Senate. It was ultimately passed using the budget reconciliation process and signed into law by President Biden on March 11, 2021, ensuring aid was distributed before key unemployment benefits lapsed.

Eligibility and Payment Details

This section breaks down the bill's provisions, eligibility criteria, and how your specific payment amount is determined. Please note that this overview covers common scenarios. For complex situations, consulting official resources or detailed FAQs on the relief package is recommended.

U.S. residents with a valid Social Security Number are generally eligible for consideration. The IRS primarily uses your tax return data to assess eligibility and calculate your payment, meaning no additional application is required for most people. Payments are typically issued via direct deposit using the bank details on your tax return. If that information is unavailable, a paper check will be mailed, though this method takes longer. Your annual income is the key factor in determining the final payment amount.

Calculating Your Payment

The final bill established lower income thresholds than initially proposed. The phase-out structure differs from earlier stimulus rounds.

Key calculation points include: Individuals earning below the threshold receive $1,400, plus $1,400 per dependent. Payments gradually decrease for incomes above the threshold, ceasing entirely at the upper limit. For couples, the combined income is evaluated against the joint filing limits. The head of household status allows for a higher income cutoff before the phase-out begins.

Phase-Out Income Ranges

  • Single Filers: Payments phase out after $75,000 and end at $80,000.
  • Married Couples Filing Jointly: The phase-out range is $150,000 to $160,000.
  • Heads of Household: Payments phase out between $112,500 and $120,000.

Other Provisions in the American Rescue Plan

The bill extended federal unemployment benefits, including a $300 weekly federal supplement. It ensured comprehensive coverage of COVID-19 vaccines and treatments under Medicaid and CHIP and allocated support for various emergency grant programs. Some original proposals, like a federal minimum wage increase, were not included in the final version.

Frequently Asked Questions

Who qualifies for the stimulus check?

Most Americans who filed a 2019 or 2020 tax return and possess a Social Security Number will qualify, provided their income falls within the designated limits. Some non-filers may also be eligible.

How much money will I get?

Your payment depends on your annual income, filing status, and number of dependents.

What if only one spouse has a Social Security Number?

Under the rules, a couple where only one spouse has an SSN is eligible for a payment of $1,400 (for the eligible spouse), not the full $2,800.

Why are the phase-out income levels different from the CARES Act?

The American Rescue Plan uses a different phase-out model. Instead of a fixed percentage reduction per dollar over a limit, it sets specific income brackets where the phase-out starts and ends. For example, for single earners, it starts at $75,000 and ends at $80,000, regardless of the number of dependents.