Will Dependents Be Eligible For The 3rd Stimulus Check, Including Those Left Out Of The First 2 Rounds?
The American Rescue Plan, a massive coronavirus relief bill that includes funding for services and goods from food stamps to school funding, was signed into law by President Joe Biden on March 11.
Among other efforts to get money to Americans, the legislation includes more stimulus checks.
But this time, eligibility requirements are somewhat different than the first two rounds. Anyone who had an adjusted gross income of $75,000 or less on their most recent tax return (2019 or 2020) and has a Social Security number will be eligible for the full $1,400 stimulus check. All dependents are included, too, including some who weren’t eligible before.
Dependents Will Receive A $1,400 Stimulus Check
Notably, the first check left out anyone age 17 or older who was claimed as a dependent on another person’s tax return. This included a number of college students and recent graduates, along with many retirees.
This time, all dependents will be eligible for checks as long as the filer who claimed them meets all other qualifications. The payments will go directly to the taxpayer, not the dependent themselves.
According to the IRS, adults who rely on another person for more than half of their expenses can be claimed as a dependent. That includes students up to age 19, or age 24 for full-time college students. Dependent adults can also include disabled people and retirees.
Didn’t Receive The First Two Stimulus Checks? You May Be Able To Claim Them At Tax Time
If you didn’t receive one of the previous two payments, you may be able to claim missed stimulus checks on your 2020 taxes.
Insider’s Tanza Loudenback reports that there are a number of reasons someone may not have been eligible at the time, but would be now. For people who were claimed as dependents on 2019 taxes and won’t be in 2020, like college students who graduated last year, it’s possible to claim the $1,800 on your 2020 taxes with the Recovery Rebate Credit.
For anyone who isn’t receiving a majority of support and being claimed as a dependent by parents or relatives, that money could come with your 2020 tax refund.
Source: Business Insider