Did you know that the IRS has the formula to decide how many stimuli checks you can receive? although not everyone would be eligible for a second incentive payment is an important factor in calculating this total based on a component of your taxes called your Adjusted Gross Income or AGI. the first set of stimulation controls used, and a second would probably be too much when it comes to you.
We’ll explain in more detail below, but first, you want to know that negotiations for a new economic aid package are full steam ahead as an activity for the year draws to a close. its end. While the main proposal is pending dropped a second stimulus check, there’s reason to believe we’ll be seeing it again for discussion in a few weeks. Both Republicans and Democrats have voiced support for another direct payment of up to $1,200 each for eligible adults.
Here’s what you need to know about what your AGI is, how to find it, and how it all fits into incentive payouts. If you’re looking for more information, CNET has resources on the relationship between stimulus checks and your IRS priority group, as well as what happens if you use SSI or SSDI, if you’re a senior, if you have dependents, if you are a young adult or if you are in a child support situation.
What is my AGI and what does it mean for my incentive payment?
Your AGI is your adjusted gross income – an amount calculated based on your total income to determine how much the government can tax you. Your gross income is the sum of all the money you earn in a year, including salaries, dividends, alimony, capital gains, interest income, royalties, rental income, and retirement benefits. After you deduct allowable deductions from your gross income (such as student loan interest, child support payments, or pension contributions), the result is your AGI, or taxable income, which is used to calculate your income tax. Your AGI is shown on IRS tax form 1040.
Because this is a rough estimate of how much you’ll return after deducting all your income streams, the IRS uses your AGI to calculate how much you can get from a $1,200 stimulus check — the maximum current is debated.
How can my AGI help me determine how much money I could receive with a second stimulus check?
Assuming another economic relief package passes, the amount you could get from a second stimulus check depends on your AGI, the status of your application (single or joint), and how many dependents you have. You can read our story on how to calculate how much money you’d get from a second stimulus check for some examples of how it might work out for you, depending on your situation.
If the second relief package follows the same incentive check guidelines as the March CARES Act, single taxpayers with a Social Security number and AGI of less than $75,000 would receive the full $1,200. As your AGI increases, the amount you are entitled to decreases. If your AGI is $99,000 or more, you are not eligible for the incentive check. But again, this assumes that the eligibility rules stay pretty much the same enrolling as Head of Household will earn you the full $1,200 if your AGI is $112,500 or less. The amount would decrease until you reached $146,500, after which you would no longer qualify.
If you are a married couple with no children and your AGI is less than $150,000, you will receive a payment of $2,400. This amount would decrease until you reached $198,000, after which you would no longer be eligible for a check.
How do I know what my AGI is if I filed taxes in 2019?
If you filed your 2019 federal income tax return, pull out your printed or PDF documents. If you have tax filing software such as TurboTax or Bloc H&R, you should be able to log into those accounts to find a copy of your return.
You can find your AGI on line 8b of the 2019 federal tax form 1040.
How do I find my AGI if I did not want to file a tax return in 2019?
If you did not file a federal tax return in 2019, you can find your AGI on your 2018 federal tax return. On the 2018 federal tax form 1040, it is on line 7.
