How to Claim the 3rd Stimulus Check on Your Tax Return

The third stimulus check, part of the American Rescue Plan Act, provided financial relief to individuals and families during challenging economic times. However, some did not receive their payment as expected, raising questions about claiming these funds when filing taxes.

Eligibility Considerations

Understanding eligibility for the third stimulus payment is essential. The IRS bases eligibility on income, dependent status, and residency.

Income Threshold

The American Rescue Plan Act set income limits to determine eligibility and payment amounts. For individuals, payments phased out between an Adjusted Gross Income (AGI) of $75,000 and $80,000. Married couples filing jointly saw phase-outs from $150,000 to $160,000, and heads of households from $112,500 to $120,000. Taxpayers should check their AGI on IRS Form 1040, especially those with fluctuating incomes or unique financial situations like self-employment.

Dependent Criteria

The third stimulus payment expanded eligibility to dependents of any age, including college students and elderly relatives. Taxpayers must confirm dependents meet IRS criteria, which include residency, relationship, and financial support tests. IRS Publication 501 provides detailed guidance. Correctly identifying all qualifying dependents ensures taxpayers claim the appropriate stimulus amount.

Residency Requirements

Residency requirements are key to claiming the third stimulus payment. Generally, U.S. citizens and resident aliens qualify, while non-resident aliens and those without valid Social Security Numbers do not. Individuals with complex residency situations, such as expats or dual-status aliens, should consult IRS Publication 519, “U.S. Tax Guide for Aliens.” Documentation like visas or green cards can help verify residency status.

Reconciling the Payment on a Tax Return

Reconciling the third stimulus payment on a tax return ensures any unpaid amount is recovered. Taxpayers can confirm payment details using IRS Notice 1444-C, which includes the amount issued and the payment date. Discrepancies can be resolved by claiming the Recovery Rebate Credit (RRC) on the tax return. Accurate calculations require cross-referencing IRS guidelines and using the 2024 Form 1040 instructions. Tax software often includes tools to assist with RRC calculations.

Recovering Missing Funds

For those who did not receive their third stimulus payment, determining whether the payment was issued but misdirected or delayed is critical. This often happens due to outdated banking or address information. Initiating a payment trace with the IRS can help locate the funds. Taxpayers can file IRS Form 3911, “Taxpayer Statement Regarding Refund,” to start this process. If the payment was never issued, claiming the Recovery Rebate Credit on the 2024 federal tax return ensures the missed amount is credited. Retaining documentation and records of communication with the IRS is essential.

Garnishments or Withholding

While stimulus payments were generally protected from creditor garnishments, they were not exempt from debts owed to federal or state agencies, such as overdue child support. Taxpayers should review their financial obligations to understand potential offsets. The IRS may also apply tax refunds to unpaid federal debts, including student loans. Regularly checking records with the Bureau of the Fiscal Service can help taxpayers stay informed about offsets.

Documentation to Support Claims

Proper documentation is essential when claiming the third stimulus payment. Retain IRS Notice 1444-C, which confirms the payment amount and issuance date. Prior tax returns, such as Form 1040, can verify AGI and dependent information. Additional documents, like marriage or birth certificates, can substantiate claims for dependents. Bank statements and payment records are useful for identifying misdirected or lost payments. Proof of identity, such as a Social Security card or ITIN, may also be required.

Adjustments for Late Filing

Late tax filing can complicate claiming the third stimulus payment. Taxpayers who miss the filing deadline may face penalties and interest. Under the Internal Revenue Code Section 6651, the penalty for failing to file is typically 5% of unpaid taxes per month, capped at 25%. Taxpayers can request penalty abatement to reduce or eliminate these charges. The IRS offers first-time penalty abatement (FTA) for those with a clean compliance history, which can be requested by contacting the IRS or submitting a written request. Additionally, taxpayers generally have three years from the original filing deadline to claim refunds, including the Recovery Rebate Credit, under IRC Section 6511. Consulting a tax professional or using IRS resources can help ensure compliance and maximize refunds.