Millions of Americans are slated to receive $1,200 checks as part of a $2 trillion stimulus deal — but there’s a cutoff determining who’s eligible for the money.
People making over $99,000 and married couples making above $198,000 will not be receiving the payments, according to an analysis of the bill released earlier this week.
See: The best way to spend your $1,200 stimulus check, according to financial advisers
The earnings limit is $146,500 for people who file their taxes as “head of household.” The head of household status means a person is unmarried, paying for more than half of a household’s expenses and claiming at least one dependent
The Coronavirus Aid, Relief and Economic Security Act, which President Donald Trump signed into law Friday, says taxpayers making up to $75,000 in adjusted gross income will receive $1,200 checks, and $500 for each child. The same rules apply for married couples who file returns under $150,000.
Above that threshold, the money starts to phase out.
The rebate decreases by $5 for every $100 by which a taxpayer exceeds the threshold, according to an analysis from the office of Sen. Charles Grassley of Iowa, whose Republican Party controls the chamber. (The bill unanimously passed the Senate on Wednesday and it passed the Democrat-controlled House of Representatives in a voice vote on Friday.)
For example, if an individual had an adjusted gross income of $76,000, he or she would receive a $1,150 check. The money from the “recovery rebate” does not count as taxable income, a Republican Finance Committee aide said Wednesday.
Read the text of the bill in PDF form.
Treasury Secretary Steve Mnuchin said Wednesday the stimulus checks would come to many Americans within three weeks. Other commentators have said it may take longer.
The relief package also expanded unemployment benefits and provides relief for small businesses.
Approximately 140 million households will receive a stimulus check, according to the Tax Foundation, a right-leaning think tank. The average check will come to $1,523 according to its calculations.
Don’t miss: What the $2 trillion stimulus package means for you and the economy
Data suggest many workers in hard-hit industries could get the full $1,200 check.
For example, restaurants in major cities can now only offer delivery and takeout. The 15.6 million–worker restaurant industry could lose up to 7 million jobs in the coming three months, according to the National Restaurant Association, a trade group.
Food and drink servers earned a median $21,750 each year, according to the Department of Labor’s Bureau of Labor Statistics. The CARES legislation, among other things, would also expand pay on unemployment claims and offer emergency assistance to small businesses.
A record-shattering 3.28 million Americans, up from 282,000 a week earlier, applied for unemployment benefits last week as the pandemic gripped the U.S. economy.
See: Why Treasury’s Mnuchin calls record-breaking unemployment claims irrelevant
Coronavirus had infected at least 105,573 people in the U.S. as of Saturday lunchtime and killed at least 1,711 people, 450 of which were in New York City, according to Johns Hopkins University. The U.S. accounts for 17% of the global total, while New York State accounts for roughly 50% of the U.S. total. Worldwide, there were 621,636 confirmed cases of the virus and 28,658 reported deaths.
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