Economic Impact Payments

Economic Impact Payments - 2021 Recovery Rebate Credit

The third round of Economic Impact Payments was authorized by the American Rescue Plan Act of 2021 as an advance payment of the tax year 2021 Recovery Rebate Credit.

The IRS started sending the third Economic Impact Payments to eligible individuals in March 2021 and continued sending payments throughout the year as tax returns were processed.

By law, all third Economic Impact Payments must be issued by December 31, 2021.

The third Economic Impact Payment amount was:

• $1,400 for an eligible individual with a valid Social Security number ($2,800 for married couples filing a joint return if both spouses have a valid Social Security number)
• $1,400 for each qualifying dependent with a valid Social Security number

Generally,  you are eligible for the full amount of the third Economic Impact Payment if you:

• are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and
• are not a dependent of another taxpayer, and
• had adjusted gross income (AGI) that is not more than:
  • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
  • $112,500 if filing as head of household or
  • $75,000 for any other filing status

Payments were phased out – or reduced – above those AGI amounts.

You may be eligible to claim a Recovery Rebate Credit on your 2021 federal tax return if you didn't get a third Economic Impact Payment or got less than the full amount.