Depending on your income, you may be excluded from receiving a stimulus check if it is ‘targeted’.
The House of Representatives has made significant progress toward passage of President Biden’s proposed $1.9 billion stimulus package. If no further changes are made, the third stimulus check could have one important difference from its predecessors. And that is that this would be a ‘targeted’ stimulus check.
A third targeted stimulus check could give thousands of dollars to some people and much smaller cash support to others, or even no money at all.
The targeted stimulus checks currently being proposed are intended to exclude people with high incomes from receiving the money, since, in theory, they do not need the support money, as they might be able to get by during the current crisis on their own income.
They are called ‘targeted’ because they are more focused on only certain groups of people, which would be those with lower incomes.
This did not happen with the first two stimulus checks. Since that money did go to all people who qualified, regardless of their high income.
This is intended to send the new economic stimulus check to more low- and middle-income households, while making it so that the money the government spends on supports is not as much.
If the $1,400 per person stimulus check were to follow exactly the same formula as the first two payments, people with high incomes would get all or part of the maximum payment.
In the new proposal, which is still being discussed among lawmakers, single taxpayers earning more than $100,000 a year would get absolutely no money from the third stimulus check.
The same would apply to taxpayers who are heads of households or married couples, regardless of whether or not they have children.
Although the targeted stimulus check has yet to pass the House and Senate without change, it would be good for you to consider that if you have income of more than $100,000 a year, you may not receive the stimulus money.