On Monday, December 21, 2021, Congress passed a new coronavirus stimulus package known as the Consolidated Appropriations Act of 2021. This 5,600-page bill provides $600 per individual, $1,200 per couple, and $600 for children. It’s available for individuals with adjusted gross income at or below $75,000 ($112,500 for heads of household), and couples with adjusted gross income at or below $150,000. If they have children, they will receive an extra $600 per child. For those above this income level, their amount will be reduced by $5 for each $100 their AGI exceeds the above thresholds.
This means an individual without children will not receive any payment if their AGI exceeds $87,000. A couple without children won’t receive any payment if their AGI exceeds $174,000. A family of four won’t receive any payment if their AGI exceeds $198,000. The IRS will use the same methodology for calculating payments as it did for the first round of Economic Impact Payments.
Unless they’re obtained by fraud, the checks do not need to be repaid. If an individual experienced an income loss in 2020 or if they have an increase in family size, they can claim an additional credit of the difference when the individual files their 2020 tax federal income tax return in the spring of 2021. The direct deposits could go out as soon as next week, according to Treasury Secretary Steven Mnuchin.
There are many other provisions that change tax law. However, the President has not yet signed the bill. Once signed, the key provisions will be reported.