IRS begins delivering third round of Economic Impact Payments

IRS begins delivering third round of Economic Impact Paymentsto Eligible Members of Religious Institutes

MARCH 15, 2021 - The Internal Revenue Service announced on March 12, 2021 that the third round of Economic Impact Payments will begin reaching eligible members of religious institutes over the following week.

Following approval of the American Rescue Plan Act, the first batch of payments will be sent by direct deposit, which some recipients started receiving as early as the weekend of March 13-14, 2021 and with more receiving the following week.

Additional batches of payments will be sent in the coming weeks by direct deposit and through the mail as a check or debit card. The vast majority of these payments will be by direct deposit.

No action is needed by most taxpayers; the payments will be automatic and, in many cases, similar to how members of religious institutes received the first and second round of Economic Impact Payments in 2020. Members can check the “Get My Payment” tool on IRS.gov beginning Monday, March 15, 2021 to see the payment status of the third stimulus payment.

In general, most eligible members will receive a $1,400 payment. As with the first two Economic Impact Payments in 2020, most members of religious institutes will receive their money without having to take any action. Some members may see the direct deposit payments as pending or as provisional payments before the official payment date of March 17.

Because these payments are automatic for most eligible people, contacting either financial institutions or the IRS on payment timing will not speed up their arrival. Social Security and other federal beneficiaries will generally receive this third payment the same way as their regular benefits. A payment date for this group will be announced shortly.

The third round of Economic Impact Payments (EIP3) will be based on the member’s latest processed tax return from either 2020 or 2019. This includes anyone who successfully registered online at IRS.gov using the agency’s Non-Filers tool last year.

In addition, the IRS will automatically send EIP3 to people who didn’t file a return but receive Social Security retirement, survivor or disability benefits (SSDI), Railroad Retirement benefits, Supplemental Security Income (SSI) or Veterans Affairs benefits. This is similar to the first and second rounds of Economic Impact Payments, often referred to as EIP1 and EIP2.

Like last year, RCRI continues to remain wary of recommending that a member of a religious institute file a zero-return 2019 or 2020 income tax return in order to receive a stimulus payment if they do not receive Social Security and other federal benefits and do not have a recent history of filing an income tax return as a member of the institute. To do so in order to receive a stimulus payment may draw scrutiny from the IRS in the future if an income tax return is not filed during those future years.

For those who received EIP1 or EIP2 but did not receive a payment via direct deposit, they will generally receive a check or, in some instances, a prepaid debit card (referred to as an “EIP Card”). A payment will not be added to an existing EIP card mailed for the first or second round of stimulus payments. 

The IRS reminds taxpayers that the income levels in this new round of stimulus payments have changed. This means that some people won't be eligible for the third payment even if they received a first or second Economic Impact Payment or claimed a 2020 Recovery Rebate Credit. Payments will begin to be reduced for individuals making $75,000 or above in Adjusted Gross Income. The reduced payments end at $80,000 for individuals; people above these levels are ineligible for a payment. More information is available on IRS.gov.