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Millions of Americans are slated to receive $1,200 checks starting this week as part of the $2.2 trillion stimulus bill — 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 the Internal Revenue Service.
The earnings limit is $136,500 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 (CARES Act), which President Donald Trump signed into law on March 27, 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.
People who make between $75,000 and $99,000 will receive reduced payments. The payment 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.
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.
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.
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 U.S. death toll from the coronavirus rose above 22,000 as of Monday.There were 1.89 million cases of COVID-19 worldwide as of Monday and 118,304 people had died, according to data aggregated by Johns Hopkins University. At least 444,492 people had recovered.
This story was updated on April 14, 2020.