The President has officially signed the American Rescue Plan Act of 2021 into law. Within this new stimulus bill are a third round of a direct checks to eligible Americans, called “recovery rebates”—of up to $1,400 for every “eligible individual.”
Sounds great, right? Of course, the devil is in the details.
How Much Will You Receive?
Each eligible individual in your household should receive $1,400. Eligible individuals include:
- You, as an individual taxpayer
- Your spouse (if you are filing a joint tax return)
- Any dependents you are claiming on your tax return, regardless of their age
For example: A married couple filing jointly and claiming three dependents on their tax return would be eligible for $1,400 x 5 = $7,000. This is the case even if the dependent is, say, an adult child in college, or a parent in assisted living.
The catch? Whether you receive a full, a partial, or no rebate depends on your Adjusted Gross Income (AGI) on your tax return:
|If you are …||You receive a full rebate if your AGI is …||You receive a partial rebate if your AGI is …||You won’t receive a rebate if your AGI is …|
|Single, or married filing separate||Under $75,000||$75,000–$80,000||Over $80,000|
|Head of household||Under $112,500||$112,500–$120,000||Over $120,000|
|Married, filing jointly||Under $150,000||$150,000–$160,000||Over $160,000|
All this begs the question: Which AGI are we talking about? Technically, … Read the rest