In 2020, Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act to help Americans affected by the pandemic. One of the most important components of the CARES Act was the issuance of stimulus checks. These checks were sent to most taxpayers in 2020 to help them cover costs associated with the pandemic.
The amount of the stimulus check was determined by the taxpayer’s income and filing status. The stimulus check limits were set by the government to ensure that everyone received the appropriate amount of money. In this article, we will discuss the stimulus check limits and how they were determined.
What Are Stimulus Checks?
Stimulus checks are payments made by the federal government to taxpayers to help them cover costs associated with the pandemic. The payments were sent out in 2020 as part of the CARES Act. The payments are based on the taxpayer’s filing status and income. The amount of the stimulus check is determined by the government and can vary depending on the taxpayer’s income.
How Are Stimulus Checks Determined?
The amount of the stimulus check is determined by the taxpayer’s filing status and income. Taxpayers who filed as single and earned up to $75,000 in taxable income received a payment of $1,200. Married couples who filed jointly and earned up to $150,000 in taxable income received a payment of $2,400. In addition, they received an additional $500 for each qualifying child.
Stimulus Check Limits
The stimulus check limits were set by the government to ensure that everyone received the appropriate amount of money. The limits were determined by the taxpayer’s filing status and income. The stimulus payment was reduced by $5 for every $100 that the taxpayer’s income exceeded the applicable income limit. For example, a single taxpayer who earned $80,000 would receive a payment of $950. Married couples who earned more than $150,000 did not receive a stimulus check.
Income Limits for Second Stimulus Checks
In December 2020, Congress passed a second round of stimulus checks. The amount of the second stimulus check is the same as the first: $1,200 for single taxpayers, $2,400 for married couples, and an additional $500 for each qualifying child. The income limits were slightly different, however. The second stimulus check is available to single taxpayers who earned up to $87,000 in taxable income and married couples who earned up to $174,000.
Final Thoughts
The stimulus check limits were set by the government to ensure that everyone received the appropriate amount of money. The limits were determined by the taxpayer’s filing status and income. The stimulus checks were reduced by $5 for every $100 that the taxpayer’s income exceeded the applicable income limit. In December 2020, Congress passed a second round of stimulus checks with slightly higher income limits. The stimulus checks are an important part of the CARES Act and have helped many Americans during this difficult time.
