The current proposal (pdf) on the table contains aof maximum eligible for each in a household. It also offers a — a compared to the previous two controls. For example, a family of four could potentially get $ 5,600, up from the up to $ 2,400 raised by the
Determine the final comparisonyour household could get into a third check, however, is still up in the air and could potentially collapse in the first two rounds. Others may get one , a or We’ll explain more below. Meanwhile, here are the right now, including what’s happening as a This story is regularly updated with new information.
How the stimulus control formula determines how much money you get
Before we explain how the third stimulus check could change the equation and what the outcome would mean for you, here’s how it works. You canif you have a But in general, is one of the most important factors in determining your stimulus check total. The others include your adjusted gross income, or , and the stimulus control formula.
The main variables that are plugged into the stimulus formula are:
- Your you do you
- Upper limits for single taxpayers, heads of household (for example, a single with at least one child) and married couples filing jointly.
- Number you claim.
- “Reduction” or “Phaseout” – the amount that your total would decrease for every $ 1,000 you earn above the limit to qualify for the full check. In other words, this part of the equation calculates a partial payment if you don’t get everything.
Just how the third stimulus check could change the equation
The recent proposal to “target” the $ 1,400 incentive check would deter the highest earners from receiving a partial payment. If the proposal is passed, the qualifications will be:
- The full amount of $ 1,400 if you earn below $ 75,000 (single taxpayer); $ 112,500 (householder); $ 150,000 (married)
- Disqualified for $ 100,000 (Single); $ 150,000 (householder); $ 200,000 (married)
- The phase-out percentage has been increased to maintain this upper limit
- These high earners wouldn’t receive partial checks, even if they have dependents
This big change in the rules for dependents is important
With the previous two stimulus checks, it was possible to get a partial benefit even if you exceeded the maximum income threshold – if you had dependents. For example, let’s say a married couple has aof $ 200,000 claims two dependents. With a $ 1,400 stimulus check using the previous formula, that family could still get a check for $ 600.
That’s because the previous formula starts with the highest amount you would qualify for (for example, $ 1,400 per single taxpayer or $ 2,800 for joint filers), adding $ 1,400 for each eligible dependent. Then it lowers the total possible amount according to your AGI and the reduction percentage.
It’s a bit like starting a test with a perfect score of 100 points and subtracting every point you “miss”, instead of starting with zero points and adding them all up at the end of the test.
But in this case, the dependents you mention can start you with a higher value, say 110 points in our class example. So by the time you subtract “points”, you can still get more than people who don’t have dependents – even if your AGI is above the maximum limit. The more dependent children you have, the higher your starting value and the higher your ending value.
The proposal to target stimulation checks would trigger a solid cut-off, meaning it would start evaluating your AGI. If you exceed the limit, it doesn’t matter how many family members you have. You still don’t qualify for a check.
On the other hand, a family with a large number of dependents and an AGI can still potentially receive a large partial payment within limits, as long as they fall below that absolute upper limit. You can
Phasing out and reduction rates: what you need to know
A sliding scale is involved in this. For example, during the second check whether youwas less than $ 75,000 as a single taxpayer (that means there are no children) you would receive the whole amount If you made more than that, the size of your check would decrease to $ 87,000, after which you would no longer be eligible.
For the $ 1,400 stimulus check – note that this is subject to change – you may receive the full $ 1,400 if you earn less than $ 75,000 per year (your AGI as the sole taxpayer), with proceeds diminishing to a close of $ 100,000 . You would receive a partial check for an AGI between $ 75,000 and $ 99,900. Again, you can see the differences in our
For heads of household and married couples with dependents, these other members of the household are an important part of the equation – up to a point (see above).
To learn more, here are the top things to doAnd watch how and people who may also qualify, including families with