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IRS numbers show who received up to $ 1,400 per person from the third stimulus checks – and there are some surprises.
In fact, some people with adjusted gross income over $ 200,000 received a cut. The IRS reports that 127,751 payments in this category went to taxpayers, totaling $ 392.3 million.
That’s out of a total of 163.5 million payments for third economic impacts that totaled $ 389.9 billion.
The fact that taxpayers received money in this category is surprising given the eligibility requirements for this third set of checks that were approved when Congress passed the American Rescue Plan Act in March.
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Payments were up to $ 1,400 per adult plus $ 1,400 per child or dependent adult. However, individuals and families must meet certain income requirements to qualify.
Full payments went to those with gross adjusted income of up to $ 75,000 for individuals, $ 112,500 for heads of household, and $ 150,000 for those who are married and file together.
The controls have been phased out for incomes above these thresholds. Individuals with adjusted gross income of $ 80,000 or more, heads of households with $ 120,000, and married couples with $ 160,000 were not eligible for the money.
One of the reasons some people with incomes above these thresholds received checks could be because payments were sent based on 2019 feedback, while their 2020 filings showed higher incomes, said Erica York, an economist with the Tax Foundation. If they did, they wouldn’t have to return the stimulus check money.
It’s possible that a family with enough qualified dependents and an adjusted gross income in excess of $ 200,000 still doesn’t zero their third stimulus checks, an IRS spokesman said.
A Bureau of Labor Statistics report on the initial stimulus checks showed that couples with children still qualify for payments at higher income thresholds compared to those who had no loved ones.
Although the formula is complicated, BLS analysis has shown that the larger the family, the more dependent wages they may have, even if those payments still expire at the same rate for everyone. Consequently, the more children a family has, the higher the threshold before they receive no payment at all.
Based on the data, average stimulus checks can be calculated based on adjusted gross income levels. Those who had adjusted gross income less than $ 200,000 received the highest average payment at $ 3,853.41. Meanwhile, those on incomes less than $ 10,000 received the smallest median payment at $ 1,777.39.
The numbers also show how many payments were made by state. Larger population states such as California, Texas, Florida, and New York received the most checks.
The IRS continues to send stimulus check funds to individuals and families while processing tax returns. This includes people who have not yet made it on record, as well as so-called plus-up payments for those whose 2020 tax return shows that they are now entitled to more money.
Those who typically don’t file tax returns are encouraged to submit their records to qualify for cash.
Free tax assistance will be available in 12 cities over the weekend July 9-10. These include Atlanta, Detroit, Houston, Las Vegas, Los Angeles, Miami, Milwaukee, New York, Philadelphia, Phoenix, St. Louis, and Washington, DC
Additionally, the IRS online filing tool allows non-applicants to register for child tax credit payments and missing stimulus checks.
The agency’s Free File program also allows individuals with incomes of $ 72,000 or less to file their federal tax returns online for free.