Millions of Americans are slated to receive $ 1,200 checks as part of a $ 2 trillion stimulus deal — 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 an analysis of the bill released Wednesday.
See: The best way to spend your $ 1,200 stimulus check, according to financial advisers
The earnings limit is $ 146,500 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, which was passed by the Senate late Wednesday, 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.
The rebate 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 control the chamber. (House Speaker Nancy Pelosi, a California Democrat, early Thursday predicted passage of the CARES bill in her chamber by a strong and bipartisan majority. That vote is now expected to come Friday.)
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, a Republican Finance Committee aide said Wednesday.
Read the text of the bill in PDF form.
Treasury Secretary Steve Mnuchin said Wednesday the stimulus checks would come to many Americans within three weeks. Other commentators have said it may take longer.
The relief package also expanded unemployment benefits and provides relief for small businesses.
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 CARES legislation, among other things, would also expand pay on unemployment claims and offer emergency assistance to small businesses.
A record-shattering 3.28 million Americans, up from 282,000 a week earlier, applied for unemployment benefits last week as the pandemic gripped the U.S. economy.
See: Why Treasury’s Mnuchin calls record-breaking unemployment claims irrelevant
The coronavirus had infected at least 69,197 people in the U.S. as of Thursday morning and killed at least 1,046 people, according to data aggregated by Johns Hopkins University’s Center for Systems Science and Engineering. Worldwide, there were 480,446 confirmed cases of the virus and 21,571 reported deaths; 115,850 people have recovered.
