Tax guide

Stimulus Payment Amounts and Qualification

What is an Economic Impact Payment (EIP)?

An Economic Impact Payment (or EIP) is a stimulus payment provided to taxpayers, most recently for COVID-19 relief. It is essentially an advance payment of a refundable tax credit, and it’s calculated using the most recent tax data the IRS has on file for each taxpayer. EIPs are not considered taxable income, so you won’t have to pay taxes on any amount you receive—and they won’t reduce your refund when you file your tax return.

How many stimulus payments for COVID-19 relief are there?

Currently, there are three major relief plans that include EIPs:

  • The CARES Act, which was passed in March, 2020 (EIP1)
  • The Coronavirus relief section of the Consolidated Appropriations Act, passed in December, 2020 (EIP2)
  • The American Rescue Plan Act, passed in March, 2021 (EIP3)

How much stimulus money will I get?

That depends on your income, marital status, dependents, and the relief package in question—here’s a basic overview:

  • Individual taxpayers:
    • $1,200 from EIP1
    • $600 from EIP2
    • $1,400 from EIP3
  • Married taxpayers filing jointly:
    • $2,400 from EIP1
    • $1,200 from EIP2
    • $2,800 from EIP3
  • Child dependents add an extra:
    • $500 from EIP1
    • $600 from EIP2
    • $1,400 for EIP3 (dependents of any age)

Keep in mind that these are the maximum amounts, and they begin to phase out at higher income amounts—you can read about those below.

What are the phaseout limits for the stimulus payments (EIP1 and EIP2)?

The phaseout limits are the same for both EIP1 and EIP2

The phaseout limits are the same for both EIP1 and EIP2.

  • If your AGI is above $75,000 as a single filer, the stimulus relief starts phasing out at a rate of $5 for every $100 you make above the threshold. The relief phases out completely once AGI exceeds $99,000.
  • For married couples filing jointly, the phaseout begins at $150,000 and ends when AGI exceeds $198,000. Heads of household start phasing out at $112,500, and the stimulus amount hits $0 when AGI exceeds $136,500.
  • If you have qualifying children, your total phaseout amount will increase by $10,000 for each qualifying child—so a head of household filer with two children would phase out at $132,500 instead of $112,500.

EIP3 has similar phaseout limits, but the amount phases out completely at a lower limit:

  • The payment begins phasing out with an AGI of $75,000 for single filers, and it phases out completely once AGI exceeds $80,000.
  • For married couples filing jointly, the phaseout begins at $150,000 and ends when AGI exceeds $160,000. Heads of household start phasing out at $112,500, and the stimulus amount will likely hit $0 when AGI exceeds $117,500 (according to typical $500 per individual phaseout window for other statuses).

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Who qualifies for an EIP1?

U.S. citizens, permanent residents, or qualifying resident aliens who are not claimed as dependents on another taxpayer’s return generally qualify for EIP1. However:

  • Individuals must have a Social Security number (SSN) valid for employment.
  • Individuals who only have an individual taxpayer identification number (ITIN) will not receive a payment.
  • Married individuals who file jointly generally will not receive a payment if one spouse has an ITIN, unless one of the spouses in in the U.S. Armed Forces.

Nonresident aliens, deceased taxpayers before 2020, and individuals without an SSN will not qualify for EIP1.

Who qualifies for an EIP2?

U.S. citizens, permanent residents, or qualifying resident aliens who are not claimed as dependents on another taxpayer’s return generally qualify for EIP1. However:

  • Individuals must have a Social Security number (SSN) valid for employment.
  • Individuals who only have an individual taxpayer identification number (ITIN) will not receive a payment.
  • Married individuals who file jointly generally will not receive a payment if one spouse has an ITIN, unless one of the spouses in in the U.S. Armed Forces.

Nonresident aliens, deceased taxpayers before 2020, and individuals without an SSN will not qualify for EIP1.

Who qualifies for an EIP2?

Again, U.S. citizens, permanent residents, or qualifying resident aliens who are not claimed as dependents on another taxpayer’s return generally qualify for EIP2—and this time, filing jointly with a spouse who has an ITIN will not disqualify you from your stimulus payment.

Nonresident aliens, adult dependents, deceased taxpayers before 2020, and individuals without an SSN will not qualify for EIP2.

Who qualifies for an EIP3?

As with EIP2, U.S. citizens, permanent residents, or qualifying resident aliens who are not claimed as dependents on another taxpayer’s return generally qualify for EIP3, including those filing jointly with a spouse who has an ITIN so long as one spouse has a social security number.

Nonresident aliens, adult dependents, deceased taxpayers before 2020, and individuals without an SSN will not qualify for EIP3.

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