College Students and 2021 Stimulus Payments

Good news: This time around, if you get the stimulus payment and you claim your college student as a dependent on your taxes, you will get a stimulus payment for them as well.

The just-passed American Rescue Plan includes $1,400 payments to people in the following income bands, by tax filing status:

• Single: AGI up to $75,000; phased out at $80,000

• Head of Household: AGI up to $112,500, phased out at $120,000

• Married Filing Joint: AGI up to $150,000, phased out at $160,000

In addition, eligible recipients will receive an equal amount for every dependent on their tax return, including college students.

Stimulus payments are based on either your 2019 or 2020 income, whichever is the most current on file with the IRS. That means that if you would be eligible for the stimulus based on 2019 but NOT based on 2020, you should hold off on filing your 2020 return until after you have received your stimulus payment. And if it’s the other way around, you should file ASAP.