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Who are the people who may be left out of the third $1,400 stimulus check and why?

Who are the people who may be left out of the third $1,400 stimulus check and why

The next stimulus check could exclude groups of people above an income level to be determined by Congress.

Earlier this week, a group of 10 Republicans proposed a coronavirus stimulus bill that would include $600 billion in resources and the possibility of offering a $1,000 check. Although President Joe Biden rejected the proposal and is relying on a $1,400 check, some of the ideas in the bill could affect the third stimulus check.

The GOP proposal seeks to exclude single taxpayers earning more than $50,000 and couples earning $100,000 from receiving a third stimulus check. Individuals with AGI below $40,000 and families earning less than $80,000 would receive the full amount, and everyone in the middle range would receive less than $1,000.

Dependents of any age could receive $500, which complicates the issue, but the thrust of the GOP argument is to prevent people earning more than the “desired” or “target” wage from receiving the stimulus money.

What happens if you change the calculation of the third stimulus check?

Changing the formula for how the first two stimulus checks were constructed would be one way to limit the number of people who will receive a new check.

Suppose the final bill keeps the maximum figure at $1,400 and the annual income threshold at $75,000.

The adjustment could result in people earning more than $75,000 a year being able to get some amount of stimulus money, their maximum payment would be $1,400 and could be lowered depending on their income. This would cause the IRS to send fewer paper, debit card, or direct deposit stimulus checks during the third round.

For example, under the current formula, a $1,400 check would give a person with an AGI of $80,000 a year a third stimulus check of $1,150. The GOP bill suggests a formula adjustment that would reduce your share by 10% instead of 5% for every $1,000 of income.

So the more you earn, the less money you could receive at a higher percentage than the current formula. That would mean that people with relatively high incomes would receive a much smaller check or in their case might not receive a check at all.

During the first round about 160 million people received their stimulus payment, while in the second round the payment went to about 147 million households, despite more groups of people being eligible for the second check.

Under this scenario a third stimulus payment of $1,400 could reach fewer people.

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