First introduced in early March 2021, the American Bailout Plan Act of 2021 (American Bailout Plan) offers up to $1,400 in Economic Impact Payments for qualified people or $2,800 for married couples filing jointly, plus an additional $1,400 for each qualifying dependant, including adult dependents.
Stimulus Check; Source- MINT
Economic Impact Payments
By giving payments of $1,400 to all eligible dependents in a family rather than simply qualifying kids younger than the age of 17, the idea increases direct financial aid to U.S. families. The $1,400 per person checks, according to the White House, are specifically intended for heads of household making less than $112,500, married individuals filing jointly who make less than $150,000, and single people making less than $75,000 annually. The maximum stimulus payment available to qualifying couples is $2,800.
Maximum Amount Of Economic Impact Payments
However, the maximum amount that can be received on joint returns for mixed-status families with only one legitimate proof of identity number that is, the Social Security number used to file the tax return is $1,400. Joint returns that do not have one spouse’s legitimate identity number are not accepted. Partial payments will be made to people earning up to $80,000 annually; married couples earning above $160,000 are not qualified for this scheme. $1,400 will be given to each person who has dependents, including elderly and college students.
Since stimulus cheques are not taxable income according to the IRS, you are exempt from reporting the funds on the federal income tax return and from paying income tax on them. It’s important to remember that even if you owe taxes, you can still be eligible for a stimulus payout because the IRS does not utilize these payments to offset state or federal tax liabilities the way it does with tax refunds. You can check the progress of your payment in the ‘Get My Payment’ area of the IRS website portal. The IRS website will provide more information as well as a pamphlet containing answers to frequently asked issues.
