![]() If not, it will be based on the 2019 return or the information submitted through an online portal set up last year for people who don’t usually file tax returns. If they’ve already filed a 2020 return by the time the payment is sent and it has been processed, the IRS will base eligibility on their 2020 adjusted gross income. The new income thresholds will be based on a taxpayer’s most recent return. On what year are the income limits based? It cuts off individuals who earn at least $80,000 a year of adjusted gross income, heads of households who earn at least $120,000 and married couples who earn at least $160,000 – regardless of how many children they have. Lawmakers narrowed the scope of the payments this time so that not everyone who received a previous check will be sent one now. But then the payments gradually phase out as income goes up. The full amount goes to individuals earning less than $75,000 of adjusted gross income, heads of households (like single parents) earning less than $112,500 and married couples earning less than $150,000. Unlike prior rounds, families will now receive the additional money for adult dependents over the age of 17. Families will receive an additional $1,400 per dependent, so a couple with two children could receive up to $5,600. The new payments are worth up to $1,400 per person and are expected to reach 85% of households, according to the White House. Separately, families that welcomed new children in 2020 could also be eligible for additional dependent payments.Īs of last week, the government had sent out 130 million stimulus payments to those who qualify for the third round of checks approved by Congress in March. Once they file their 2020 tax return that shows a lower income amount, the IRS will automatically send them an additional payment. That means people who earned less in 2020 could be owed more money. The original payments were based on 2018 or 2019 tax returns. ![]() The Internal Revenue Service started sending what it calls “plus-up” payments last week to people who are owed a bigger stimulus check based on their actual 2020 income than they initially received.
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