Calculate your estimated COVID-19 stimulus check amount

The US Congress had earlier approved two rounds of COVID-19 stimulus checks. The first round was a $1,200 payment from the Coronavirus Aid, Relief, and Economic Security (CARES) Act. This act was signed into law in March 2020. 

A few months down the line, President Trump had signed a second $900 billion economic relief package on December 27, 2020, that included $600 COVID-19 stimulus checks. And now, a third round of stimulus checks,  which is part of the Biden administration’s “American Rescue Plan,” has been signed into law.

This is a $1.9 billion plan which guarantees a stimulus amount of up to $1,400 for millions of Americans, including their dependents. 

Table of Contents

Content	S.No.
Who is eligible for the stimulus check?	1
How will your payment amount be calculated?	2
What’s the phase-out rate?	3
Calculator: Calculating your estimated stimulus pay	4
What if you haven’t filed taxes at all?	5
How will you receive your stimulus payment?	6
Tax-related things to keep in mind	7
General things to keep in mind	8

1. Who is eligible for the third stimulus check?

Most American taxpayers are eligible to receive a third stimulus check. Although, there are some exceptions. People who are classified as nonresident aliens, anyone who can be claimed as a dependent on someone else’s return, or people without a Social Security number, won’t receive a payment.

2. How will your stimulus amount be calculated?

The stimulus act will be using data from your latest tax return filings (2019 or 2020). It will use the following 3 main data points to finalize your stimulus amount;

• Annual Gross Income (AGI) 

• Number of Dependents

• Filing status (Single/Married/Head of Household)

The third round of COVID stimulus has established certain AGI caps. If your AGI on record is more than the set cap, there will be a reduction in the stimulus pay, from the default amount of $1400. 

There 3 distinct caps for individuals, couples, and heads of household. An individual with an AGI of up to $75,000 would receive the full $1,400 check, while a couple who’ve filed their tax returns jointly with an AGI of up to $150,000 would receive $2,800 ($1,400 per person). 

A head-of-household (HOF) filer with an AGI of up to $112,500 would receive the full $1,400 amount. One big change with the latest stimulus package is that an additional amount of $1,400 is tacked on to your payment for all dependents. For the first two rounds, the additional amount had a limit of $500 and $600, respectively.

3. Understanding the stimulus phase-out rate

The amount of the stimulus check will reduce once the AGI exceeds the established caps. The reduction would continue until the AGI keeps increasing and touches the final limit. Once that limit is exceeded, the person becomes ineligible for a stimulus check.

The reduction that happens for the AGI between the set cap and the final limit, is as per the rates defined by the IRS. The income levels at which the third stimulus checks start to be phased out are the same as the levels or caps used for the first two stimulus payments.

Although the rates at which the checks are phased out are different and slightly non-uniform this time. As a result, you might not get a full third stimulus check even if you received full payments in one or both of the first two checks.

An individual with an AGI at or above $80,000 would not receive a stimulus check. A couple who’ve filed jointly would not receive a stimulus check if their AGI is at or above $160,000. A person who filed as head of household with an AGI at or above $120,000 would not receive a stimulus check.

4. Calculating your estimated stimulus pay

You can use our calculator and find out the estimated amount you can receive in the third stimulus paycheck. Our calculator uses the exact reduction rates as provided by the IRS. 

To calculate your amount, fill in your filing status, AGI, and number of dependants, as recorded in your latest tax return filings (2019 or 2020)

Stimulus Calculator

Filing Status	Single/Couple/HOF
Annual Gross Income (AGI)
Number of Dependants
Estimated Stimulus Amount

5. What if you have not filed your tax returns at all?

Even if there are not tax returns for 2020 or 2019 on file, some people will still be eligible for the stimulus check. Social Security beneficiaries and railroad retirees who are not required to file a tax return will automatically receive a $1,400 stimulus check. 

Also, if you’re a couple and only one of you has a Social Security Number, then the bill confirms that only one stimulus check of $1400 will be sanctioned. An exception is that if one spouse was a member of the Armed Forces during the taxable year, then the couple will be eligible for the whole $2,800.

When will your stimulus payment arrive? 

The US Treasury Department had already started delivering the third round of stimulus payments on the weekend of March 13-14. But many taxpayers did not receive their payment until March 17, which is the effective date when banks get the money from the government.

If you have filed your taxes and are eligible for the stimulus payment as per the above-mentioned criteria, you shall definitely receive your calculated pay. Most non-taxpayers started receiving their payments from April 7th onwards.

6. How will you receive your stimulus payment?

The US Treasury Department will be sending the stimulus payments via 3 different modes;

1. Direct Bank Deposit

2. Paper Checks

3. Economic Impact Payment (EIP) debit cards

Direct deposits are known to happen at the earliest. Paper checks and EIP debit cards usually take time as they come via mail. If you receive an EIP card, read the material that comes with it carefully. These cards come with fees for checking your balance, using an ATM for withdrawals, or using an out-of-network ATM.

7. Tax-related things to keep in mind

As the stimulus payments are based on the tax return filings, there’s a lot to keep in mind for the normal taxpayer when it comes to availing the stimulus.

• The third stimulus check is actually an advance payment in the form of a refundable credit that will be calculated with your 2021 taxes. 

• If your AGI exceeded the set cap in 2020 to get the full stimulus payment, but you end up making less income in 2021 than you did in prior years, you could get a stimulus payment as a rebate in 2022. Also, if you make more money in 2021 than you did in 2020, you will not have to pay back your stimulus payment in 2022.

• If you couldn’t claim your earlier round 1 and round 2 ( $1,200 & $600) stimulus checks, you can do so on your 2020 tax returns. You can use the Recovery Rebate Credit Worksheet and enter the amount from the worksheet onto Line 30 of your 1040 tax form. 

8. General things to keep in mind

9. In case your income decreased during the pandemic, you could benefit from filing your 2020 taxes earlier, especially if you now qualify within the new AGI caps. But if you made more money in 2020 and your income puts you above the caps, you may want to delay your 2020 filing so that you can get a stimulus payment based on your lower 2019 tax return.

10. If you earned your third stimulus check over your 2019 tax return but exceeded the AGI limit for your 2020 tax year, the IRS will not mandate you to pay back the stimulus amount.

11. Keep in mind that the IRS will not treat your stimulus check as an advance or a federal government loan. This means that the amount credited as stimulus won’t be deducted from your tax refund and you don’t have to pay it back. Also, the agency won’t tax your payment, so you will not have to report it as part of your yearly taxable income.

12. if you do not usually have to file a tax return, the IRS has created an online tool that allows you to enter your personal and bank account information, to receive your stimulus payment.

13. If you stand eligible for the third stimulus check but haven’t received it yet, you can claim the payment when you file your taxes for the 2021 tax year in 2022.

14. People collecting unemployment benefits are also eligible to receive the stimulus payment.