Stimulus Payment Amounts and Qualification

Updated for filing 2021 tax returns

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.

Missing EIPs (or parts of one) can be claimed when you file your taxes via the Recovery Rebate Credit.

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 for EIP1 are as follows:

• Single Filers and Married Filing Separately: If your AGI is above $75,000 as a single filer, the stimulus relief starts phasing out. The relief phases out completely once AGI exceeds $99,000.
• Heads of Household: Your stimulus amount starts phasing out when your income goes over $112,500, and the stimulus amount hits $0 when AGI exceeds $136,500.
• Married Filing Jointly and Qualifying Widow(er): For married couples filing jointly, the phaseout begins at $150,000 and ends when AGI exceeds $198,000.
• Qualifying Children: If you have qualifying children, your total phaseout amount will increase by $10,000 for each qualifying child.
  • For example, a head-of-household filer with two children would phase out completely at $156,500 instead of $136,500, and a married couple filing jointly would phase out at $218,000 instead of $198,000.
  • The math works out because each qualifying child gets you an additional stimulus amount (either $500 with EIP1 or $600 with EIP2).

For each status, the stimulus phases out at a rate of 5% of the excess income over the limit (think $5 for every $100 above your phaseout threshold).

Below are the phaseout limits for EIP2:

• Single Filers and Married Filing Separately: If your AGI is above $75,000 as a single filer, the stimulus relief starts phasing out. The relief phases out completely once AGI exceeds $87,000.
• Heads of Household: Your stimulus amount starts phasing out when your income goes over $112,500, and the stimulus amount hits $0 when AGI exceeds $124,500.
• Married Filing Jointly: For married couples filing jointly, the phaseout begins at $150,000 and ends when AGI exceeds $174,000.
• Qualifying Children: If you have qualifying children, your total phaseout amount will increase by $12,000 for each qualifying child.

The phaseout rate is the same for EIP2: 5% of the excess income over the limit.

Finally, here are the limits for EIP3:

• Single Filers and Married Filing Separately: If your AGI is above $75,000 as a single filer, the stimulus relief starts phasing out. The relief phases out completely once AGI exceeds $80,000.
• Heads of Household: Your stimulus amount starts phasing out when your income goes over $112,500, and the stimulus amount hits $0 when AGI exceeds $120,000.
• Married Filing Jointly: For married couples filing jointly, the phaseout begins at $150,000 and ends when AGI exceeds $160,000.
• Qualifying Children: You will get an extra $1,400 for each dependent in your household, but they do not increase your phaseout threshold.

Each status has a different rate of phasing out per dollar, but in general the rate for each is simpler: If your income is halfway between the beginning phaseout amount and the total phaseout amount, you’ll get half as much of the total stimulus payment.

For example, a married couple filing jointly who makes $155,000 is right between those limits--instead of getting the full $2,800 amount, they would only receive $1,400.

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.
• Update: Married individuals who file jointly generally now qualify for a partial EIP1 payment if one spouse doesn’t have an SSN. If you did not originally receive a payment because only one spouse had an SSN, you can get your partial EIP with the Recovery Rebate Credit.

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.
• Update: Married individuals who file jointly generally now qualify for a partial EIP1 payment if one spouse doesn’t have an SSN. If you did not originally receive a payment because only one spouse had an SSN, you can get your partial EIP with the Recovery Rebate Credit.

Nonresident aliens, 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. Married couples filing jointly with only one SSN can qualify too, but only the spouse with the valid SSN will qualify for a stimulus payment (dependents qualify, too). For example, a married couple with two kids would qualify for up to $4,200 ($1,400 x 3) if only one spouse has an SSN.

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

A missing EIP3 can be claimed when you file your taxes via the Recovery Rebate Credit.