Calculating Your Stimulus Check: How Much (if Any) Will You Get?
The proposed stimulus may call for $1,400 checks, but the amount your family will receive may be very different. The House Ways and Means Committee developed a different formula for the third round of checks than the previous two.
As of late February, the formula calls for:
- $1,400 for a single taxpayer and $2,800 for joint filers
- An additional $1,400 per dependent, regardless of the dependent’s age, as long as the person’s Social Security number is on the filer’s return
- A phase out for individuals who have an adjusted gross income above $75,000 ($112,500 for head of household filers and $150,000 for joint filers). Originally, the phase out would reduce the credit proportionately until it reaches a value of zero at $100,000 adjusted gross income ($150,000 for heads of household and $200,000 for joint filers). However, as of early March, it appears that the phaseout, which starts at $75,000 for single filers, now would be capped at $80,000. The phaseout starting at $150,000 for joint filers now would be capped at $160,000. For heads of household, the phaseout starts at $112,500 and would now be capped at $120,000.
The payments are based on information in 2019 or 2020 tax returns, whichever is available to the Treasury Department. Those who have not filed income tax returns, such as retirees, will receive payments if the Treasury Department has their information.
As with the other payments, those who receive more than they are technically eligible to receive will not have to repay the excess. Those who do not receive payments will be able to claim the amount when they file their 2021 tax return. They will have to wait for their money. Will the economy still need stimulus next year? Let’s hope not.
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