New Provisions May Limit Who Receives a Third Round Stimulus Check
As negotiations continue on the third round of stimulus checks, it appears fewer Americans would get them. Democrats have recently released a new bill adopting the same phase-out thresholds used for first and second-round payments. The bill will become part of the larger one that’s being pieced together as part of the Biden Administrations’ 1.9 trillion stimulus package. Now, if this latest, third stimulus check plan is passed, most Americans who previously received a payment – will receive a third.
Married With Children
Under this latest bill, stimulus checks won’t be reduced for single Americans earning up to $75,000, head-of-household filers making up to $112,500, and married couples with a combined income up to $150,000. As with previous stimulus checks, they would get a full payment – in this case, $1,400 per person ($2,800 for couples), plus an additional $1,400 for each dependent.
Singles with an adjusted gross income (AGI) above $75,000, would have their stimulus payment gradually phased-out until it reaches zero for those making $100,000 or more. For head-of-household filers, the phase-out range would be from $112,500 to $150,000. For married couples filing a joint return, the phase-out range would be $150,000 to $200,000.
Plus, the phase-out range’s ceiling is a cap, applying to all people, regardless of how many dependents they have. As a result, stimulus checks are reduced to zero for all taxpayers at or above the $100,000, $150,000, and $200,000 AGI levels (depending on your filing status).
These proposed phase-out rates would also take effect quicker than for the first two rounds of stimulus payments. If the previous rate were applied, the phase-out ranges for $1,400 checks would be $75,000 to $103,000 for singles (no dependents), $112,500 to $168,500 for head-of-household filers (one dependent), and $150,000 to $206,000 for joint filers (no dependents).
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