On top of tracking where and when your third stimulus check would be delivered, IRS gives you a new challenge of computing the right amount of payment you are entitled to receive. You need to factor in the third stimulus check, plus your dependents and the newly approved "plus-up" payment factor.
Luckily, there's a calculator that can do the math for you!
You should know that the third stimulus check is rolling out this month, and if you are one of its beneficiaries, you can expect its arrival sometime soon. Some of you probably received the payment already. However, are you sure to have received the proper amount you are entitled to?
How Much Stimulus Money Should You Get
The IRS has changed most of the rules in this third stimulus wave. First, qualifications have been modified for the adjusted gross income (AGI), head of household, and joint couple filing. The qualification for dependents has also been revised to include babies born this year. Lastly, the plus-up payments are included for people whose eligibility was based on the 2019 taxes instead of 2020.
The IRS gave important guidelines to remember when computing how much of the third stimulus check you are entitled to receive:
- You cannot receive money, even if you have dependents, if your AGI exceeds the upper-income limit.
- Dependents are no longer restricted by age. New-born infants, college students, adult children with disabilities, and elderly adult relatives listed as dependent qualify for $1,400 each.
- Plus-up payments are based on your recent tax returns, so you should apply for the 2020 tax returns to get the extra money.
Stimulus Check Payment Calculator
Cnet created a handy new stimulus calculator that computes your estimated third stimulus payment including the factors above. To use the calculator, provide your data from your 2019 or 2020 tax return, depending on which you have currently submitted to the IRS.
You need to provide your filing status, adjusted gross income (AGI), and how many qualified dependents you have claimed. Click the "Calculate" button and it will automatically provide you with the estimated stimulus payment.
However, be warned that the phase-out system for the receiving payments is currently being implemented. The credit payment would start to phase out by $50 for every $1,000 beyond the AGI threshold of $75,000 for the individual taxpayer, $112,500 for the head of household, and $150,000 for married couple filing.
The plus-up payment is in full effect for people who have received their third stimulus check but are underpaid by how much they qualify. For example, you recently lost your job and your AGI has fallen below what you originally listed on your tax return. IRS plus-up system sends this extra money you qualify for in a separate payment.
Qualified recipients should correctly compute how much they are entitled to receive so IRS can accurately produce their new plus-up payments.