At least three groups of taxpayers will not receive any money under the stimulus plan before the federal Congress for consideration.
Like past pandemic stimulus bills, the one currently being discussed in the U.S. Congress to distribute $1,400 checks sets income limits for eligibility for the full payment, to be applied by the Internal Revenue Service (IRS) when evaluating recipients’ tax returns.
For the past several weeks, Republicans insisted that the new legislation must lower the gross adjusted income amounts to $40,000 and $80,000 for individuals and couples to receive the full payment.
The idea fell by the wayside, as House Democrats established in one of the sections of the bill that would pass the House this week that individuals earning up to $75,000 annually and $150,000 in the case of married couples would be eligible for the full payment of the third stimulus check.
In this way, the new legislation follows the guidelines of previous statutes under which checks of $1,200 and $600, respectively, were distributed.
Once the previous thresholds are reached, the payment will gradually be reduced to zero.
But which taxpayers would receive less money or no payment once the phase-out begins?
A Yahoo Finance report this week specifies the various thresholds applicable under the bill introduced by Ways and Means Committee Chairman Rep. Richard Neal, a Democrat, which served as the basis for the wording of the stimulus check section of the new stimulus package.
The groups of taxpayers who will receive a reduced check:
1. Individuals with adjusted gross income of more than $75,000, but less than $100,000.
2. Married couples filing jointly with income over $150,000, but less than $200,000.
3. Heads of households with incomes over $112,500, but less than $150,000.
Taxpayers who will not receive stimulus check monies:
1. Individuals earning $100,000 or more 2.
2. Married couples who between them earn $200,000 or more
3. Heads of households with an income of $150,000 or more.