HomeStimulusHow Much Third Stimulus Check Means for Older Adults?

How Much Third Stimulus Check Means for Older Adults?

The third wave of stimulus payments is about to be sent to those eligible for them by the IRS.

A $1,400 check will likely be sent out to you if you’re 65 or older, have received Social Security benefits, or if you are a veteran (tracking your payment is here).

Individuals with a high level of income from investments or other sources may experience different results.

What your third check is totaled depends also on how many dependents you claim (if any), or if you’re been claimed as a dependent by someone else.

You should also consider when filing your tax return if you have already had it processed by the IRS in early 2021.

If you normally don’t file taxes, you will need to claim the Recovery Rebate Credit on your 2020 taxes if you are still missing money from the first or second check.

You will learn everything that could affect the third stimulus payment on this below.

This includes filing your federal taxes this year, figuring out your adjusted gross income, pension, and Social Security benefits, as well as whether anyone counts you on their taxes as a dependent.

Who is IRS Define as an Older Adult?

Senior (older) adults are considered to be 65 years and older at the end of the year 2020.

You are considered to be 65 years old on the day before your 65th birthday, according to the IRS.

Read More: Schedule for SNAP Benefits in 2022: Lone Star Card Benefits Schedule

How Do I Know If I Am Eligible for Third Stimulus Payment?

For those who were eligible for the first and second stimulus checks, it depended on whether you were a dependent and how much your AGI is after filing a federal tax return.

You figure your AGI by subtracting your gross income from any eligible adjustments.

If you haven’t filed taxes recently, the IRS will likely use your 2019 tax return since the deadline has been extended to May 17.

Your AGI and therefore your eligibility for the stimulus check will be affected if you have a pension or investments that are taxable. This is also true for bank interest.

Tax-exempt bond interest is not included in your AGI, however, so it would not affect your eligibility for stimulus payments.

There are some changes to the eligibility rules for the third stimulus check in the final version of the bill, and you can check if you qualify based on income limits using a third stimulus check calculator. These are the stimulus calculators for the first and second checks.

What Amount Will I Receive If I am Eligible for a Third Payment?

Your qualifications can change with the third stimulus check in several ways.

In the new law, all dependents, regardless of age, will receive a payment of up to $1,400.

You may therefore be able to receive a larger stimulus payment if you are supporting an adult-dependent such as a college student.

Approximately 13.5 million adult dependents are expected to benefit from the expansion, according to the People’s Policy Project.

Additionally, the newly proposed law extends to families with “mixed-status” citizenship, which includes immigrants with multiple immigration statuses.

The first and second stimulus payments did not include either of these groups.

Note that an additional $1,400 will be available to single filers who earn less than $75,000.

A third payment will not be given to those who earn $80,000 or more annually.

With the next stimulus payment, some households can still get more money in other ways.

Do You Qualify for the Third Stimulus Check as an SSI Or SSDI Beneficiary?

You were eligible for the first and second stimulus checks if you are over 65 and receiving Supplemental Security Income or Social Security Disability Insurance, and you will be eligible for the third one.

Veteran recipients and railroad retirees are also eligible to receive.

IRS said Social Security recipients are receiving stimulus checks, but veteran affairs recipients may have to wait a few weeks to receive their benefits.

Exactly What is a Gross Income, And How Can I Discover My Own?

This figure differs from your AGI because it includes income from selling your primary residence and gains (but not losses) reported on Form 8949 or Schedule D as well as income from sources abroad.

Social Security benefits are not included in your gross income unless:

  • At some point in 2019, you lived with your spouse though you filed separately.
  • You have more than $25,000, as a single, in gross income and tax-exempt interest from half of your Social Security benefits and other income.

Those who fall into either of those categories should consult Instructions for Forms 1040 and 1040-SR of Pub. 915, Social Security and Equivalent Railroad Retirement Benefits, to determine the portion of Social Security benefits that must be included in gross income.

How Can I Get a Stimulus Payment If a Person Claim Me as Their Adult Dependent?

It may be possible to claim a relative as a dependent on someone else’s tax return. This is called a “qualifying relative.”

If your children live with you, for example, this may be possible.

Tax form 1040 would need to be filed by the main tax filer claiming you as a dependent to qualify for stimulus checks.

It doesn’t matter how old the relative is.

Nonetheless, four criteria must be met in order for someone to be considered a qualifying relative on their tax return. The criteria are:

  • Does not qualify as a qualifying child dependent.
  • Living with the family member year-round, or count as a relative who is not obliged to live with the family member e.g. parent.
  • Must earn less than $4,200 in gross income for the year.
  • They must receive over half of their support from a family member during the year.

When the first or second round of stimulus checks was given out, people over the age of 16 who were dependent on others’ taxes were not eligible for stimulus money at all.

However, dependents of all ages can now be added to the household’s total payment of up to $1,400 with the new law.

Read More: Democrats Contemplate Ways to Resurrect the Child Tax Credit

I am Not a Filer. Do I Need To File Taxes This Year In Order To Receive Stimulus Funds?

During tax season, a nonfiler is a person who will not be required to pay taxes to the IRS.

Your tax return filing requirement depends on your gross income, which is all income you receive from money, goods, property, and services that aren’t tax-exempt.

IRS officials disclosed that nonfilers do not need to do anything in order to receive a third stimulus check.

Nonfilers are only required to file a tax return if they intend to claim missing stimulus funds in the Recovery Rebate Credit this year.

It may be possible for you to use a special form and file for free. In order to do so, you will need some specific information.

The following conditions apply if you are 65 or older:

  • A single filer with a gross income of at least $13,850.
  • A household head with a gross income of at least $20,000.
  • If both spouses are 65 and older, the gross income is $27,000. If one spouse is 65 and older, the gross income is $25,700.
  • For married individuals filing separately (any age).
  • A widow(er) over 65 years of age with a gross income of at least $25,700.

For the 2019 tax year, the IRS issued Form 1040-SR, US Tax Return for Seniors.

Basically, this form is similar to Form 1040 but has larger text and some information that will be helpful to older taxpayers.

As a Non-United States Citizen, Who Pays Tax, Am I Eligible for a Third Stimulus Check?

As part of the December stimulus bill, persons who are not US citizens, including those paying taxes, weren’t eligible to receive the $600 gift, in contrast with the first round of checks.

All Americans and non-Americans with a Social Security number living and working in the United States will receive stimulus payments under the CARES Act of March 2020.

In that category were citizens of foreign countries, green card holders, and workers with Visas such as H-1B and H-2A.

It may be necessary for you to update the IRS’ records in order to receive your check if you have changed citizenship since you first got a Social Security number.

American citizens living abroad are qualified to receive their first payment.

More so, families with mixed citizenship statuses – those with different immigration statuses – can receive the third check.

The First and Second Stimulus Payments Never Reached Me. Will I Be Able To Claim Them On Taxes?

Now that it’s tax season, you may need to use the Recovery Rebate Credit to claim a missed payment if you haven’t received your first or second paycheck by now – even if you don’t normally file taxes.

You will either get your stimulus allotment bundled with your tax refund or you’ll pay less tax if you opt for the Recovery Rebate Credit.

Make sure to file your tax return as soon as possible.

In addition, you should register your bank account with the IRS for direct deposit.

Read More: Don’t Miss Out on $2,000 Child Tax Credit and January $300 Check

I Am More Than 65 Years Old With Dependents. What If I Didn’t Get Paid the First Two Payments?

You should claim a Recovery Rebate Credit on behalf of dependents who qualify for an additional $500 under the CARES Act or an additional $600 under the December stimulus bill if you are 65 or older and have a child dependent age 16 or younger.

Read More

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