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).

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. This had to be claimed on a 2020 return prior to May 17, 2024.

EIP 2 ($600 per taxpayer/spouse, $600 for qualifying children): Created by the Consolidated Appropriations Act (2021), issued January 2021. This had to be claimed on a 2020 return prior to May 17, 2024.

EIP 3 ($1,400 per qualifying person): Created by the American Rescue Plan Act (2021), issued March 2021. This has to be claimed on a 2021 return prior to April 15, 2025.

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.

Can I Still Claim the RRC?

• Taxpayers had until May 17, 2024 to claim missing EIP payments 1 and 2 on their 2020 tax returns.

• Taxpayers have until May 15, 2025 to claim missing EIP payment 3 on their 2021 tax return.

See IR-2024-60 for more information.

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:

• $75,000 (Single/MFS)

• $112,500 (HOH)

• $150,000 (MFJ)

The stimulus payment will be $0 if a taxpayer’s AGI reaches the following and they have no qualifying children:
*For individuals with qualifying children, these total-phaseout amounts increase by $10,000 for each qualifying child.

• $99,000 (Single/MFS)

• $136,500 (HOH)

• $198,000 (MFJ)

EIP 3 Phaseout Ranges:

The stimulus payment amount begins to be reduced when an individual’s AGI reaches the following:

• $75,000 (Single/MFS)

• $112,500 (HOH)

• $150,000 (MFJ)

The stimulus payment will be $0 if a taxpayer’s AGI reaches the following:

• $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.

1. Access the RRC Worksheet by selecting worksheets from 1040, Line 30.

   
   

2. Enter the amount of EIP received, in the correct EIP section for the taxpayer and the spouse.

   1. If the taxpayer received no EIP, checkmark the no stimulus received boxes as needed.
      
      2020 Return EIP 1 and EIP 2

      

      
      2021 Return EIP 3