The third wave of stimulus payments was approved by the American Rescue Plan Act.
Those checks totaled $1,400, plus an additional $1,400 for each of your family’s dependents. However, payments were phased out for joint filers with adjusted gross incomes above $150,000, head-of-household filers with an adjusted gross income (AGI) exceeding $112,500, and single filers with an AGI exceeding $75,000. In fact, if your AGI was above $160,000 (joint filers), $120,000 (head-of-household), or $80,000, your third-round stimulus payouts were canceled (singles).
Unfortunately, some people who were eligible for a third-round stimulus payment did not get one or received less than they were entitled to. Relief in the form of a 2021 tax credit known as the recovery rebate credit may be available for those people.
Your third stimulus check was technically a credit advance payment. As a result, when you submit your 2021 tax return, you’ll need to reconcile your third stimulus check (if any) with the recovery rebate credit you’re eligible to claim. For most people, the tax credit available will be equal to the third stimulus check payment. Your credit will be lowered to zero in that instance. If your third stimulus check is less than your credit amount, the difference will be deducted from the tax you owe (and you might even receive a refund). You won’t have to refund the IRS the difference if your third-round stimulus check was greater than your credit amount.
Also note that stimulus check payments are not taxable!
