New stimulus check cutoff means millions won’t get the full $1,400. Here’s howMarch 6, 2021
The, picking up some significant amendments to the provisions for and the mean that tens of millions of people than they may have expected.
For the new stimulus checks specifically, theremains (including for ), but an effort to “target” the payments would result in . That means the payment will get smaller, quicker for any amount you make above a certain level, and fewer people would . More people .
While the House will still need to pass the amended bill (PDF), it’s projected they’ll do so without additional amendments, which means the current legislation is likely to be final. We’ll explain how fits in to the new targeted plan. For more information, here’s , how and what to know about . This story was updated with new information.
How the stimulus check ‘targets’ would officially change
Thelikely to become law would exclude individuals defined as higher-income earners. The initial proposal would have cut off single taxpayers who make $100,000 a year — the new amendments drop that down to $80,000.
Senate vs. House income caps
|Senate check income limits||House check income limits|
|Single taxpayer||Full payment below $75,000; cutoff at $80,000||Full payment below $75,000; cutoff at $100,000|
|Head of household||Full payment below $112,500; cutoff at $120,000||Full payment below $112,500; cutoff at $150,000|
|Married, filing jointly||Full payment below $150,000; cutoff at $160,000||Full payment below $150,000; cutoff at $200,000|
According to the Institute on Taxation and Economic Policy, 60% of Americans would receive a full payment under both the House and the Senate plans. The Senate change, however, would affect the highest earners, where more than 11 million adults and over 4 million children would be blocked from receiving a check for any amount.
The new income cap limits are lower than that for— at $87,000 for an individual, $124,500 for a head of household and $174,000 for families — but the amount of money that people who qualify could receive might be more than twice the amount of that second check.
Here’s what happens without a ‘targeted’ $1,400 stimulus check
If the $1,400-per-person stimulus check followed the exact, people considered high income would get all or part of the maximum payment, in addition to all the people Congress actively wants to supply with stimulus money.
Without changing anything except the maximum a person could get, a much higher $1,400 maximum would make it so that even single people who earn $100,000 would get a partial check. The size of that payment would otherwise balloon with dependents involved. For example, single taxpayers with an AGI below $75,000 would receive the full $1,400 check. At $85,000, they would receive $1,150; at $90,000 a year, they would get $650; and if they make $102,900, the Treasury would send a stimulus check for $5.
That all comes down to the way the mathematical equation works out. It’s complicated. In essence, you plug in the stimulus maximum ($1,200 for the first payment; $600 for the second), yourand the number of dependents you have. Interestingly, adding in dependents could make it possible for people who exceeded the income limit of the first two checks to still get a partial payment. Read more about .
If lawmakers want to keep the $1,400 per-person maximum but ensure that people who make, for instance, $100,000 a year don’t get the payment, the formula would have to become more “targeted.” That’s the discussion now.
How new qualifications could factor in
In addition to supporting larger stimulus checks,two previously excluded groups: (not just children under 17) and all . Combined, that could potentially extend stimulus funds to nearly 20 million people who previously might not have been counted toward the family total. The Senate is also considering restrictions around .
If passed, the outcome would most likely be a larger stimulus check for families that previously qualified (in the case of 17-year-olds anddependents), and some mixed-status families qualifying for a new check for the first time. In all cases, families would have to meet all other eligibility requirements — like an income limit — to receive a future stimulus check.
For more information, here’s theand here’s what to know about . Finally, here’s what to do if .