IRS uses stimulus check formula to calculate how much cash Americans to get as Congress mulls $1.9trillion Covid bill
THE IRS is looking to create a formula based on the $1.9 trillion Covid stimulus package Congress is still working to pass in order to calculate how much each American will receive.
How much you will get in the next stimulus will depend on a formula the IRS will use to calculate how much of the maximum $1,400 one is allotted to, which will consist of determining which hard income limits would be put into place to exclude those who originally were eligible under previous stimulus checks to get the upcoming one.
Joe Biden and a bipartisan group of senators have recently made comments saying they would prefer to lower the income limit so those of higher incomes would not become eligible to receive the next round of stimulus checks.
The formula would rely on one's adjusted gross income (AGI) would be based on a number of factors.
One would be the AGI you had claimedd on your 2019 or 2020 federal tax returns. Secondly, the upper limits of single taxpayers, heads of households, and married couples will also be put into question.
The number of eligible dependents one can claim will be factored in, as well as a "reduction or "phase-out" rate, which is the amount your total would drop for every $1,000 you make above the limit to qualify for the full check.
If the new income cap measures are adopted, it would limit the amount of people who receive the full $1,400 amount if they make above certain guidelimits.
To receive the full $1,400, one must earn under $75,000 as a single taxpayer, $112,500 as a head of household, and $150,000 as a married couple.
People would then receive portions of the $1,400 checks but would be disqualified at $100,000 for single taxpayers, $150,000 as head of household, and $200,000 for married couples.
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