NEW DETAILS ABOUT STIMULUS AMOUNT FORMULA
New details about stimulus amount formula. The amount of money you and your household receive with a third stimulus check—for example $1400, $2800, or $10–hinges on an important formula the IRS will eventually use to calculate your share set aside in the upcoming stimulus bill. The latest proposal would provide both adults up to $1400 maximum. It would also include an extra $1400 for dependents of any age, a potentially huge sum compared to the previous two checks. A family of four could potentially get $5600, versus up to $2400 supplied by the $600 check. The third stimulus check set to arrive in weeks could make some significant changes to the equation, possibly setting hard income limits that would exclude some people who got stimulus money the first two times. Others would get a much smaller payment, or none at all. We’ll explain. Here are the top things to know about the stimulus payments now. You can qualify for the stimulus check if you’re a nonfiler who doesn’t pay taxes. But in general, your tax return is one of the most important factors in determining your stimulus check total. The others include your AGI and the stimulus check formula. New details about stimulus amount formula.
An important change to dependent rule to consider. With the previous two stimulus checks, it was possible to get a partial payment even if you exceeded the maximum income limit–if you had dependents. For example, let’s say a married couple with an AGI of $200,000 claims two dependents. With a $1400 stimulus check that uses the previous formula, that family could still get a $600 check. That’s because the previous formula begins with the largest amount you’d be eligible for and add $1400 for each qualifying dependent. Then it reduces the total possible sum according to your AGI and the phase out rate. It’s a little like starting a test with a perfect 100 point score and subtracting every point you miss rather than starting with zero points and adding them all up at the end of the test.