No direct payments for individuals making $80,000 a year or more, with cutoff at $160,000 for joint filers
There has been a change in who will get stimulus checks in Washington’s next big relief package, as President Joe Biden last week agreed to new income limits. The shift came after moderate Democratic senators voiced concerns about money going to people who aren’t in dire need.
The Senate then voted 50-49 in favor of its $1.9 trillion relief legislation on Saturday, and the House of Representatives appears on track to approve the Senate version of the aid bill on Wednesday, sending it over to Biden to get signed into law.
So who looks set to receive the upcoming direct payments of $1,400? Individuals making $75,000 or less a year and their dependents each would receive checks totaling that full amount.
The payments decrease gradually for individuals earning above $75,000 — and they phase out completely for individuals making $80,000 or more. That’s a change from a prior income cap of $100,000. Couples who file taxes jointly and earn $150,000 or less a year and their dependents each will get full payments of $1,400.
The checks become gradually smaller for joint filers making above $150,000, and they phase out entirely at $160,000. That’s a change from a prior income cap of $200,000 for couples. “Head of household” filers, such as single parents, would see a phase-out starting above an income level of $112,500 and no payments at $120,000 vs. a previous cap of $150,000. With these guidelines, a married couple with two children would receive up to $5,600, and a single parent with two kids would get up to $4,200.
To determine income levels, the federal government will look at adjusted gross income (AGI) from 2020 tax returns, or when they aren’t filed yet it will rely on 2019 returns. The third round of stimulus checks come after $1,200 checks last spring and $600 payments in December.
The upcoming $1,400 payment on top of $600 just a few months ago means most Americans will get a total of $2,000, an amount that Biden and other Democrats promised to deliver while campaigning. One other change in this upcoming “stimmy” round is a household’s adult dependents, such as college students, will receive payments, after previously not being eligible.
The White House on Monday said it’s expecting a “large number” of Americans to get the $1,400 stimulus checks by the end of this month. Biden and the Democratic-run Senate and House are working toward enacting their “American Rescue Plan” legislation this week before several pandemic-related jobless programs are due to expire.
Victor Reklaitis • Marketwatch
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