For additional details on the recordkeeping rules for substantiating gifts to charity,
can be found at IRS.gov.
Publication 5477, All taxpayers now eligible for Identity Protection PINs PDF
Publication 5477 - SP, All taxpayers now eligible for Identity Protection PINs
Publication 5367 - EN and SP, Identity Protection PIN Opt-In Program for Taxpayers
Get an Identity Protection PIN – IRS YouTube video
The IRS continues its efforts to expand ways to communicate to taxpayers who prefer to get information in other languages. the first time ever,
the agency has posted to IRS.gov a Spanish language version of Form 1040 and the related instructions.
People who were unemployed last year and paid taxes on benefits could automatically receive refunds as part of a fix being worked on by the Internal Revenue Service. The first $10,200 of unemployment income was made tax-free for most people under recent legislation, but it was passed after tax season had started.Full Story: CNBC (3/19)
The Newsroom Topics
Issue Number: COVID Tax Tip 2021-35
IRS is issuing third round
Economic Impact Payments
The IRS started issuing the third round of Economic Impact
Payments. No action is needed by most taxpayers. The IRS
will issue payments automatically by direct deposit and through
the mail as a check or debit card.
Many people will receive the third payment the same way they
received the first and second Economic Impact Payments.
Because these payments are automatic for most eligible people,
there’s no need to contact financial institutions or the IRS.
People can check the Get My Payment tool on IRS.gov for status
of their third stimulus payment.
Highlights of the third Economic Impact Payments
$1,400 for each qualifying dependent claimed on their tax return.
As with the first two Economic Impact Payments, most people
will receive their third payment without having to take any action.
The third Economic Impact Payment is based on the taxpayer's
latest processed tax return from either 2020 or 2019. This
includes anyone who successfully registered at IRS.gov using
the agency's Non-Filers tool last year or submitted a simplified
tax return. If the IRS received and processed a taxpayer's 2020
return before issuing someone’s third Economic Impact
Payment, the amount is based on the 2020 return.
Those who received the first or second payment but don't
receive a payment by direct deposit will generally receive a
check or a prepaid debit card, referred to as an EIP Card. The
IRS will not add the third payment to an existing EIP card that
people received for the first or second round of stimulus
Under the new law, the IRS can’t apply the third Economic
Impact Payment to past-due federal debts or back taxes.
Who is eligible for the third Economic Impact Payment
full amount of the third Economic Impact Payment if they and
their spouse, if they’re filing jointly, are not a dependent of
another taxpayer and have a valid Social Security number and
their adjusted gross income on their tax return does not exceed:
The payments phase out -- or reduce -- above those AGI
amounts. This means taxpayers will not receive a third payment
if their AGI exceeds:
are available on IRS.gov.
New Common Questions & Derived Answers About EIP3:
- Parents claimed dependent for 2019 and received EIP 3 for dependent. Dependent was no longer a dependent for 2020
- and filed return as “independent” and also received EIP 3 – will anyone in this family have to pay back their EIP 3? - I received
- a Third Economic Impact Payment. Do I need to pay back all or some of the third payment if, based on the information reported
- on my 2021 tax return next year, I don't qualify for the amount that I already received? (added March 26, 2021)
- My EIP 3 did not include an amount for my dependent – can IRS correct my EIP 3 or will I need to wait and claim 2021 RRC? –
- Depends, see Topic C: Supplemental Economic Impact Payments
- Will IRS be able to correct EIP 3 if was based on 2019 and 2020 makes them eligible for more? – Yes, see: Topic C: Supplemental
- Economic Impact Payments
- Will I have to pay back any EIP 3 if was based on 2019 and 2020 makes them eligible for less? - No, see: I received a Third Economic
- Impact Payment. Do I need to pay back all or some of the third payment if, based on the information reported on my 2021 tax return next
- year, I don't qualify for the amount that I already received? (added March 26, 2021)
- What guidance do we have for those who receive the stimulus for one who is deceased? See Will a deceased individual receive the
- (added March 26, 2021)
- My EIP 3 amount is incorrect based upon my AGI for 2019. What can I do to get it corrected? Topic C: Supplemental Economic Impact
- TP divorced and agreement is that every other year parents alternate claiming their child. Husband claimed son in 2019 and got EIP 1&2
- for son. Wife entitled to claim son in 2020 filed return but return not processed yet so husband got EIP 3 too. I received the third Economic
- Impact Payment before I filed my 2020 tax return. Am I eligible for an additional third round payment when I file my 2020 tax return? (added
- March, 26 2021)
- We’re getting an increased number of constituents who were claimed as dependents in 2019 but filed or will file on their own in 2020. Since
- the 3rd EIP begins to go out today, there will likely be a lot of taxpayers who do qualify for it, but will not list as qualifying until their 2020
- returns are processed. Has the IRS issued guidance on how the 3rd EIP distributions will look for these folks that may not have filed yet or may
- not have had 2020 returns processed yet? See: I recently filed a 2020 tax return. What do I need to do to get a third payment? (added March
- 26, 2021)
- Many inquiries where only partial payment was received even though AGI for 2019 see Topic C: Supplemental Economic Impact Payments
- Inquiries for receiving more than they should have – do they have to pay it back? I received a Third Economic Impact Payment. Do I need to pay
- back all or some of the third payment if, based on the information reported on my 2021 tax return next year, I don't qualify for the amount that I
- already received? (added March 26, 2021)
- SS beneficiary received the EIP 1 and 2 for dependents and self, but not EIP 3, only received 1400.00 for herself. Does she need to now file a
- 2020 tax return? What can I do if I think the amount of my third Economic Impact Payment is incorrect? (added March 26, 2021)
- TP deceased in 2021 and spouse received EIP 3 which included the 1400 for deceased spouse. Can it be kept or needs to be returned? Will a
- deceased individual receive the payment? (added March 26, 2021)
- Will EIP 3 be offset to child support which is a state issue? Per the news release IR 20; Under the new law, an EIP3 cannot be offset to pay
- various past-due federal debts or back taxes. Will my third Economic Impact Payment be offset if my spouse or I owe past-due child support?
- (added March 26, 2021)
- Will there be a 2021 RRC for Children born in 2021? Is a child born, adopted, or placed into my foster care in 2021 a qualifying dependent for
- the third payment? (added March 26, 2021)
- Will there be a 2021 RRC for those who’s 2019 & 2020 income too high for EIP but 2021 income significantly lower? Will I need to provide
- information about my Third Economic Impact Payment or additional payment to claim the 2021 Recovery Rebate Credit on my 2021 tax
- return when I file in 2022? (added March 26 2021)
- Does the unemployment exemption take the $10,200 out of MAGI for calculating how much SS is taxable? – Answered Tax Treatment of
- Unemployment Benefits
- Does the unemployment exemption take the $10,200 out of MAGI for deducting IRA contributions? – Answered Tax Treatment of
- Unemployment Benefits
- Third round of Economic Impact Payments: The IRS, the Department of Treasury and the Bureau of the Fiscal Service announced they
are disbursing approximately 37 million payments in the second batch of Economic Impact Payments from the American Rescue Plan.
- Economic Impact Payments will continue to roll out in batches to millions of Americans in the coming weeks. So far, 127 million payments
- have been disbursed totaling approximately $325 billion.
- The second batch of payments includes direct deposits, as well as paper checks and debit cards that are being mailed.
- Additional batches of payments will be sent in the coming weeks.
- Combatting COVID-19 fraud: The IRS Criminal Investigation Division (IRS-CI) marks the one-year anniversary of the Coronavirus Aid, Relief
- and Economic Security (CARES) Act by pledging its continued commitment to investigating COVID-19 fraud.
- Where’s My Refund? tool and IRS2Go app: The IRS reminds taxpayers that the most convenient way to check on a tax refund is by using
- the Where's My Refund? tool at IRS.gov or through the IRS2Go Mobile App.
- Tax deductible medical expenses to prevent the spread of COVID-19: The IRS issued an announcement clarifying that the purchase of
- personal protective equipment such as masks, hand sanitizer and sanitizing wipes, for the purpose of preventing the spread of coronavirus are
- deductible medical expenses.
Materials/resources: Please share and adapt these materials for your communications, including emails, newsletters, websites, social media and
other channels. We need your help in sharing these important materials with your families, friends, partners and clients.
- IRS, Treasury disburse another 37 million Economic Impact Payments from the American Rescue Plan English ?Spanish
- IRS Criminal Investigation (CI) pledges continued commitment to investigating COVID-19 fraud as CARES Act reaches one-year anniversary
- English ?Spanish
- Tax Time Guide: Use the Where’s My Refund? Tool or IRS2Go app to check tax refund status English ?Spanish
- Face masks and other personal protective equipment to prevent the spread of COVID-19 are tax deductible English
- New: Check out the Third Economic Impact Payment page, also available in Spanish, for more information about eligibility, getting your payment
- and more.
- See the Get My Payment page also available in 7 languages: Spanish ?Chinese-Simplified ?Chinese-Traditional ?Korean? Russian ?Vietnamese ?
- Haitian Creole for information on how to use the Get My Payment tool to view the third Economic Impact Payment status and more.
- IRS continues to increase multilingual outreach on its social media platforms. For example, IRS has created individual images & tweets in 6
languages, highlighting key messages in Spanish?Vietnamese?Russian?Kor
The Newsroom Topics
Issue Number: IR-2021-84
Inside This Issue
IRS suspends requirement to repay excess
advance payments of the 2020 Premium Tax
Credit; those claiming net Premium Tax
Credit must file Form 8962
WASHINGTON — The American Rescue Plan Act of
2021 suspends the requirement that taxpayers
increase their tax liability by all or a portion of their
excess advance payments of the Premium Tax Credit
(excess APTC) for tax year 2020. A taxpayer’s
excess APTC is the amount by which the taxpayer’s
advance payments of the Premium Tax Credit (APTC)
exceed his or her Premium Tax Credit (PTC).
The Internal Revenue Service announced today that
taxpayers with excess APTC for 2020 are not required
to file Form 8962, Premium Tax Credit, or report an
excess advance Premium Tax Credit repayment on
their 2020 Form 1040 or Form 1040-SR, Schedule 2,
Line 2, when they file.
Eligible taxpayers may claim a PTC for health
insurance coverage in a qualified health plan
purchased through a Health Insurance Marketplace.
Taxpayers use Form 8962, Premium Tax Credit to
figure the amount of their PTC and reconcile it with
their APTC. This computation lets taxpayers know
whether they must increase their tax liability by all or
a portion of their excess APTC, called an excess
advance Premium Tax Credit repayment, or may
claim a net PTC.
Taxpayers can check with their tax professional or
use tax software to figure the amount of allowable
PTC and reconcile it with APTC received using the
information from Form 1095-A, Health Insurance
claiming a net PTC for 2020. They must file
Form 8962 when they file their 2020 tax return. See the Instructions for Form 8962 for more information.
Taxpayers claiming a net PTC should respond to an
IRS notice asking for more information to finish
processing their tax return.
Taxpayers who have already filed their 2020 tax
return and who have excess APTC for 2020 do not
need to file an amended tax return or contact the IRS.
The IRS will reduce the excess APTC repayment
amount to zero with no further action needed by the
taxpayer. The IRS will reimburse people who have
already repaid any excess advance Premium Tax
Credit on their 2020 tax return. Taxpayers who
received a letter about a missing Form 8962 should
disregard the letter if they have excess APTC for
2020. The IRS will process tax returns without Form
8962 for tax year 2020 by reducing the excess
advance premium tax credit repayment amount to
Again, IRS is taking steps to reimburse people who
Form 8962, reported, and paid an excess advance
Premium Tax Credit repayment amount with their
2020 tax return before the recent legislative changes
were made. Taxpayers in this situation should not file
an amended return solely to get a refund of this
amount. The IRS will provide more details on
IRS.gov. There is no need to file an amended tax
return or contact the IRS.
As a reminder, this change applies only to reconciling
tax year 2020 APTC. Taxpayers who received the
benefit of APTC prior to 2020 must file Form 8962 to
reconcile their APTC and PTC for the pre-2020 year
when they file their federal income tax return even if
they otherwise are not required to file a tax return for
that year. The IRS continues to process prior year tax
returns and correspond for missing information. If the
IRS sends a letter about a 2019 Form 8962, we need
more information from the taxpayer to finish
processing their tax return. Taxpayers should respond
to the letter so that the IRS can finish processing the
tax return and, if applicable, issue any refund the
taxpayer may be due.
See the Form 8962, Premium Tax Credit, and IRS
Fact Sheet for more details about the changes related
to the PTC for tax year 2020.