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At what level of AGI does the stimulus payment phase out?

Customer Question
At what level of AGI does the stimulus payment phase out?
Submitted: 9 years ago.Category: Tax
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Answered in 3 minutes by:
6/3/2008
Tax Professional: Merlo, Accountant replied 9 years ago
Merlo
Merlo, Accountant
Category: Tax
Satisfied Customers: 9,783
Experience: 25+ years tax consulting. Specializing in returns for US citizens living abroad
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HelloCustomer

The stimulus payment -- both the basic component and the additional funds for qualifying children -- begins to phase out for individuals with adjusted gross incomes (AGI) over $75,000 and married couples who file a joint return with AGI over $150,000. The combined payment is reduced by 5 percent of the income above the AGI thresholds.

Here are two examples of how the phase out works:

  • An individual with AGI of $80,000 and federal income tax liability in excess of $600 would qualify for a basic rebate of $600. Because this individual's AGI exceeds $75,000, however, her rebate is reduced by $250 (the credit is reduced by multiplying the amount of AGI over $75,000 by 5%). The taxpayer receives an economic stimulus payment of $350.
  • A married couple with two children, AGI of $160,000 and federal income tax liability before the child tax credit exceeding $1,200 qualifies for a basic rebate of $1,200 and an additional qualifying child credit of $600 for a total rebate of $1,800. But because the couple's AGI exceeds $150,000, their rebate is reduced by $500 (the amount of AGI over $150,000 multiplied by 5%). The couple receives an economic stimulus payment of $1,300.

If you found this answer helpful, kindly press the "Accept" key. Positive feedback is also greatly appreciated. Thanks for the question.

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Customer reply replied 9 years ago
This information should have been available without any charge
Tax Professional: Merlo, Accountant replied 9 years ago

I'm sorryCustomer

Is there something I missed in your question that I can still help you with? I thought I was giving you the information you requested, but if not, please tell me what you need to know and I will try to help.

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Merlo
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Category: Tax
Satisfied Customers: 9,783
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