Theis happening. In fact, people have already started — here’s how to , and . A last-minute bid in the Senate to , which means that for those who meet the , the .
That figure already stands to drop the total amount of money per household, but the effect on your second payment is more nuanced than that. It turns out that lowering the upper limit to $600 couldaltogether.
We’ll explain everything you need to know about what could contribute to a smaller. (Here’s more information about , , and a .) This story has been updated with the latest details.
$600 doesn’t just lower the total check, it reduces the number of people who could get it
The second stimulus check allocates qualified adults$600 apiece to go toward the household total. That new rate alone would automatically give most households a smaller check than before. But that’s only if you get the full $600 amount. Turns out there’s more to it than that.
The stimulus legislationso that, for example, single taxpayers would get the full $600 if they make less than $75,000 per year. But if they make more than that, they’d receive only a partial payment that gets progressively smaller the more money they make per year, , until they reach an upper threshold. After hitting the threshold they at all.
That upper limit is now lower than before, which means fewer people will be eligible to receive even a partial check. The chart below helps illustrate this. Note that it doesn’t account for variables like the number of children you have, so use ourinstead to get a personal estimate.
$600 second stimulus check income limits
|AGI to receive full amount||AGI to phase out of payment||Down from|
|Single tax filer||Under $75,000||$87,000||$99,000|
|Head of a household||Under $112,500||$124,500||$146,000|
|Married, filing jointly||Under $150,00||$174,000||$198,000|
You made more money in 2019 than in 2018
Your, is a term normally used on the annual federal tax return to describe your total income, including assets (like stock sales, credits and deductions or an inheritance) that fall outside your usual paycheck. You didn’t get the first stimulus check if your AGI went above a certain income limit, and that’s an even lower number with the $600 second stimulus check.
The first stimulus check was based on your 2018 or 2019 taxes, if you had filed them. But the second check is based solely on your 2019 taxes. That means if you got a new job or earned more money between 2018 and 2019 (congratulations), you may race toward the upper limit faster, and receive only a partial check. However, anyyou have could still contribute to the total sum. Again, our .
Here’s more about the relationship between.
You now have fewer dependents than you did before
is an important factor in how much stimulus money a household gets, but maybe not the way you think. are in many cases entitled to their own stimulus check. In the first round of direct payments, households were given an extra $500 for each “child dependent.” This is defined as a legal minor who is 16 years old or younger.
Interestingly, the IRS definition of a(23 or under, and financially reliant on the tax filer) isn’t the same one used for stimulus checks.
After some back and forth, the rules for thekeeps the same definition of child dependent, but raises the amount to $600 per 16 year old and younger. If one of your children is now 17, or no longer in your custody (read ), then your check would exclude that amount.
A calculation error could yield a smaller check at first
Itand could easily happen with the next. Clerical errors and complex rules might result in your household getting less money in a future than you might be entitled to — for you . Or maybe you don’t normally need to file taxes and wind up missing a rare extra step you need to take.
Whatever the reason, if some issue prevents you from receiving all or part of your stimulus money, you will be able to.
Did a member of your household recently die?
Our condolences. If your household receives a stimulus check that includes a spouse or child dependent who died between your last tax filing and the receipt of the second stimulus check, the IRS is likely to send a smaller sum if your tax filing status, deductions, credits or AGI changed. In some cases, the IRS has asked for the payment to be returned.
However, if your spouse died in 2020, the $900 billion stimulus bill will allow you to claim a check under the terms “head of household;” that is, is you could receive the full amount if you make under $112,500.
For more information about stimulus money, here are.