In mid-March, President Joe Biden signed the third stimulus bill in law, and for the first time, adult dependents – including students – can receive a stimulus check.
Dependent adults have slipped through the cracks when it comes to stimulus payments and have not been eligible for assistance so far, although many students have suffered job losses due to the COVID-19 pandemic while being expected to pay tuition and fees normally.
College students can receive up to $ 1,400
Student dependents have been denied previous stimulus checks, but with the new bill, students who are at least 17 years old and are considered dependents can receive up to $ 1,400. That said, the amount students might receive is based on the adjusted gross income (AGI) of the taxpayer claiming them.
Single filers who earn less than $ 75,000 per year and married spouses who earn less than $ 150,000 per year will be entitled to the full amount of the stimulus. The reduced stimulus payments will go to single tax filers who earn between $ 75,000 and $ 80,000 and to married co-owners who earn between $ 150,000 and $ 160,000. If you are a student and the person claiming you as a dependent earns more than that, you will not be eligible for a check no matter how much you earn on your own.
Also keep in mind that students will not receive payments directly. Instead, this additional payment will be sent to the taxpayer who claims it as a dependent.
CNET third stimulus calculator can help you predict the potential amount of your family’s stimulus check using the taxpayer’s deposit status, AGI, and number of eligible dependents claimed.
How students can use the stimulus test
There is no limit on how you can use a raise test. It can be spent, put into savings, or even used to plan for retirement. Arvind Ven, independent financial advisor and CEO of Capital V Group, advises students to use the extra cash to invest in their future. “Their parents, who are the taxpayers, could potentially help invest the amount for them and if they are eligible, in a ROTH IRA.”
However, each student’s financial situation is unique. Pay monthly bills, snack existing student debt or boosting savings might be a wise use of your stimulus money.
Students can request an additional recovery reimbursement of $ 1,800
Dependents over the age of 17 were previously excluded from stimulus payments, but you may be able to recover these checks. “Some students and other young adults may also be able to claim up to an additional $ 1,800 from the previous two stimulus programs,” says Fri. That $ 1,800 takes into account the first check for $ 1,200 and the second check for $ 600.
You may be eligible if you have aged out of the adult dependent category or have experienced a qualifying life event, such as graduating from college and entering the workforce. If so, you can file a request for “Recovery rebate creditWhen you submit your 2020 tax return.
There is no penalty for applying; if you don’t know if you qualify, the IRS has a page where you can check recovery reimbursement requirements.
Also check your personal records and bank statements in case they have already been deposited. The first checks were sent from March 2020 and the second from December 2020.
How to track your dunning payment
It is always possible that your stimulus is still in progress, as a number of factors could have delayed it. To see if your stimulus is on its way, use the “Get my payment” from the IRS tracker. You will be able to track the payments of $ 1,200 and $ 600 and see by what method the checks were distributed – either by direct deposit or by mail.