If you didn’t get the amount of money you expected to get in the, or if you got , you may wonder how the IRS determined you are to get.
The federal agency followed a fairly complex formula to tabulate payment amounts. The CARES Act that funded the stimulus aid sets out the basics forof the stimulus allowance and establishes eligibility based on factors such as your and the number of .
There are many exceptions. For example, a married couple that maxes out the income limit and “shouldn’t”can still receive a $400 check. And can have an impact on the amount you can get.
Understanding the IRS’ formula — and— can help you decide if you need to file an appeal during the . Here, we’ll explain how the IRS tabulates stimulus payments. We recently updated this story.
How does the IRS actually calculate my stimulus check?
For most people, the answer is “adjusted gross income you put on your 2019 federal tax returns if you filed them or otherwise your 2018 returns. ( .).” Specifically, the IRS starts with the
If you’re an individual US citizen, head of a household or part of a married couple filing jointly, the most money you could make in a year (your AGI) and still get a check looked something like this, according to the CARES Act:
- $99,000 for eligible individuals (up to $1,200)
- $136,500 for head of household filers (up to $1,200)
- $198,000 for married couples filing joint returns (up to $2,400)
But there are two important facts you also need to know: First, at a certain “income cap,” the IRS reduces the total you can get by $1 for each $20 of income you have over the cap. So if you’re a single person filing alone and your AGI is less than $75,000, you’d likely get the full $1,200. As your AGI goes up, your check would get smaller.
Second, these numbers don’t factor in. The IRS would include a $500 payment for each qualifying child 16 years or younger that you claimed on your tax return, which means you could still get more — or less — than the per-person or per-couple limit depending on your income.
When the IRS put it all together for the first payment, the agency started with the largest amount you’d be eligible to receive ($1,200 per single taxpayer or $2,400 for joint), added $500 for each qualifying child and then reduced the total possible sum according to your AGI.
It’s a little like starting a test with a perfect 100 points and subtracting every point you “miss,” rather than starting with zero points and adding them all up at the end of the test.
But in this case, the dependents you name can start you at a higher value, say 110 points in our classroom example. So by the time you subtract “points,” you may still have more than people who don’t have dependents, even if your AGI is high.
That’s why it’s possible you could be out of range for a payment based on your AGI and still receive a check for eligible dependents. Still confused? We don’t blame you. Maybe these scenarios. Also see below for even more sums.
I have kids — how does the stimulus check formula work for my family?
Here, we want to show you the calculation at work, and how the math changes for people who claim dependents.
Remember that an individual can qualify for a stimulus check of up to $1,200, a married couple who files taxes jointly can get up to $2,400, andthrew in an extra $500 per . Note that a head of household is someone who files taxes individually and has at least one dependent. People who are considered single filers claim no dependents on their taxes, only themselves, which is why this group isn’t included in the chart below.
These figures are based on the rules set out for the first check, worked out using — they don’t include variables for a second check and are estimates only. There are a lot of that could determine your final sum. If the amount below looks higher than what you received though, you may need to investigate a catch-up payment from the IRS for .
Stimulus check calculations with dependents (First check)
|Head of household||Married couple, filing jointly|
|Estimated total with:|
|AGI of $40,000 and no dependents||$1,200||$2,400|
|AGI of $115,000 and no dependents||$1,075||$2,400|
|AGI of $200,000 and no dependents||Not eligible||Not eligible|
|AGI of $40,000 and 1 dependent||$1,700||$2,900|
|AGI of $115,000 and 1 dependent||$1,575||$2,900|
|AGI of $200,000 and 1 dependent||Not eligible||$400|
|AGI of $40,000 and 2 dependents||$2,200||$3,400|
|AGI of $115,000 and 2 dependents||$2,075||$3,400|
|AGI of $200,000 and 2 dependents||Not eligible||$900|
What does this mean for a second economic payment?
If and when Congress doeswith a second round of checks — either this year — the size of your payment could largely depend on any , even if the $1,200 and $2,400 caps stay the same.
For example, earlier this year, Congress considered at least two proposals that would have cast a wider net for dependents. One would allot more money for children (for example, $1,000 instead of $500), and the other would(including $500 for college students and older parents who live with you).
Both would have potentially increased your family’s overall pool. Remember, the bigger the sum a family starts with, the bigger the check they are likely to receive after the IRS makes its deductions based on your AGI.
Again, here’s a— with varying AGIs and types of dependents — if the rules change one of two ways. In that guide we also explain different ways you could see more, or even less, money on a second check.
For now we keep our eyes on Washington. For more, see how, , and people who can also qualify.