Direct Payments to Individuals & Families

The IRS has a resources and guidance page for Economic Impact Payments here.

The IRS has an Economic Impact Payments page available here.

The American Rescue Plan

The American Rescue Plan will provide individuals and families with an additional direct payment up to $1,400 per person. Generally, someone is eligible for the full amount of the third Economic Impact Payment if they: 
  • are a U.S. citizen or U.S. resident alien (and their spouse if filing a joint return), and 
  • are not a dependent of another taxpayer and 
  • their adjusted gross income (AGI) is not more than:
    • $150,000 if married and filing a joint return or if filing as a qualifying widow or widower
    • $112,500 if filing as head of household or
    • $75,000 for eligible individuals using any other filing status

H.R. 133, Omnibus Appropriations and Emergency Coronavirus Relief Package

The relief package passed in December 2020 included a provision that provided a refundable tax credit in the amount of $600 per eligible family member. The credit is $600 per taxpayer ($1,200 for married filing jointly), in addition to $600 per qualifying child. The credit phases out starting at $75,000 of modified adjusted gross income ($112,500 for heads of household and $150,000 for married filing jointly) at a rate of $5 per $100 of additional income.

2020 Cares Act

The CARES Act provided direct payments to 80% of New Jersey families. Over 92% of single tax filers and eight-in-ten joint-filers in New Jersey received payments up to $1,200 for individuals earning less than $75,000 and $2,400 for couples earning less than $150,000, plus $500 per child. 

Watch as I discuss Economic Impact Payments with IRS liaison & NJ taxpayer advocate:

  • The IRS has a resources and guidance page for Economic Impact Payments here.
  • The IRS has an information center available here.
  • The U.S. Department of Treasury has a guide to the CARES Act here.