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This article discusses Economic Impact Payments and how to enter them on their respective returns. |
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What is an Economic Impact Payment?
Economic Impact Payments also called stimulus checks, were one-time direct payments paid to qualifying individuals by the federal government during COVID by the passage of the CARES Act (2020), the Consolidated Appropriations Act (2021), and the American Rescue Plan Act (2021).
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When Were The EIP Payments Issued?
EIP 1 ($1,200 per taxpayer/spouse, $500 for qualifying children): Created by the CARES Act (2020), issued April 2020.
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EIP 3 ($1,400 per qualifying person): Created by the American Rescue Plan Act (2021), issued March 2021.
How Do I Know If I Received Economic Impact Payment 1 or 2?
Taxpayers can check the status of their EIP's in their online IRS account using the IRS instructions below.
”Your online account: This is an online IRS application that allows you to securely access your individual account information. The amounts of your Economic Impact Payments are found under the Tax Records tab/page. The Tax Records tab/page will show two separate amounts: the amount of your first economic impact payment (some received multiple payments so the amount shown will be the total) and the amount of your second payment. Even if you and your spouse received joint payments, your accounts online will show each spouse’s portion of the joint payments. Therefore, you and your spouse will need to sign into your own account to retrieve your separate amounts” (https://www.irs.gov/newsroom/2020-recovery-rebate-credit-topic-f-finding-the-first-and-second-economic-impact-payment-amounts-to-calculate-the-2020-recovery-rebate-credit).Their IRS notice 1444 (1st payment), 1444-B (2nd payment), or 1444-C (3rd payment).
By requesting an account transcript for 2020 (1st and 2nd payments) or 2021 (3rd payment) at 800-908-9946 or by submitting IRS Form 4506-T.
Stimulus Phase-Out Ranges
EIP 1 and 2 Phaseout Ranges:
The stimulus payment amount begins to be reduced when an individual’s AGI reaches the following:
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$80,000 (Single/MFS)
$120,000 (HOH)
$160,000 (MFJ)
Completing The Recovery Rebate Credit Worksheet
When completing a 2020 or 2021 tax return, complete the RRC Worksheet to determine if the taxpayer is eligible to receive any Recovery Rebate Credit.
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