The last proposal (PDF) would provide bothuntil It could also be a , a compared to the previous two controls. For example, a family of four could potentially get $ 5,600, versus up to $ 2,400 provided by the
however, thecould make some significant changes to the equation, possibly the setting the first two times. Others would have a , or none at all. We’ll explain more below. Meanwhile, here are the right now, including what’s happening as a This story has been updated with new information.
How the stimulus check formula makes you money
Before explaining 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 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 (eg A single with at least one child) and married couples filing jointly.
- Number you claim.
- “Cut” or “tapering” rate – the amount that your total would drop for every $ 1,000 you earn above the limit to be eligible for the full check. In other words, this part of the equation calculates a partial payment if you don’t get everything.
How the third stimulus could change the equation
The recent proposal to “ target ” the $ 1,400 incentive check would stop top 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); $ 112.5.00 (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 would not receive partial checks, even if they have dependents.
This change of dependent rules is important
With the previous two stimulus checks, it was possible to get a partial benefit even if you exceeded the maximum income limit – 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 can still get a check for $ 600.
That’s because the previous formula starts with the largest 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 within limits can still potentially receive a large partial payment as long as they fall below that absolute upper limit. You can
What a cut-off or reduction percentage means
A sliding scale is involved in this. For example, during the second check whether youwere less than $ 75,000 if a single taxpayer (that means there are no children), you would receive the full 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 family members are an important part of the equation – to some extent (see above).
To learn more, here are the top things to doAnd watch how and people who may also qualify, including families with