![]() ![]() ![]() Under the Rescue Plan Act, however, individuals with an AGI of $80,000 or more (or couples with an AGI of $160,000 or more) will not be eligible to receive any stimulus payments whatsoever under the Rescue Plan Act. For example, a single taxpayer with no qualifying children and with an AGI of $87,000 is considered “fully phased out.” In contrast, a single taxpayer with 2 qualifying children is “fully phased out” at AGI of $111,000. ![]() Under the CARES Act and the Appropriations Act, the payments are reduced by 5% of the amount that the taxpayer’s AGI exceeds $75,000 (or $150,000 for married filers). Under the Rescue Plan Act, payments are $1,400 to each eligible individual and $1,400 for each dependent of an eligible individual Such payments phase out based upon an individual’s Annual Gross Income (AGI) based on 2019 returns. The Appropriations Act provides direct payments of $600 per eligible individual, $1,200 for joint filers ( down from $1,200/$2,400 under CARES Act) and $600 per qualifying child ( up from $500 under CARES Act). The IRS has provided other methods for eligible individuals who did not file 2019 or 2020 tax returns to claim the payments. Under the Rescue Plan Act, the payment amount is based on 2019 income, or 2020 income if the 2020 tax return has been filed. Under the CARES Act and the Appropriations Act, the payments are sent automatically to any eligible individual who filed a 2019 Federal income tax return. Who is Eligible?Īll three laws generally say that payments will be made to “eligible individuals.” An eligible individual is generally any U.S. In this article discuss how estates and trusts should handle these stimulus payments. One very common question is how to deal with the payments that are made to trusts and deceased persons. This is the third round of stimulus payments, with the first two rounds coming from the March 2020 Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) and the December 2020 Consolidated Appropriations Act (the “Appropriations Act”). Among many other things, The Rescue Plan Act provides “recovery rebates”, which are commonly referred to as economic impact payments (EIPs) or stimulus payments, to many taxpayers. On March 11, 2021, President Biden signed into law the American Rescue Plan Act of 2021 (the “Rescue Plan Act”). Many people are continuing to struggle to make ends meet due to the COVID-19 pandemic and related business shut-downs. ![]()
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