This week House Democrats have just presented a new bill proposal that includes a second stimulus check, and the package is being discussed by both parties. How can you know how much money you will receive if it is approved?
While Americans wait to see if a new relief package is finally approved, the amount of a second stimulus check can already be calculated. What is your AGI and why does the amount of money you can receive depend on it?
Both Democratic and Republican leaders say they want to provide a new round of direct payments of up to $ 1,200 per adult, to Americans struggling amidst the economic and employment crisis. The exact amount each person will receive, however, depends on their adjusted gross income, or AGI, and the number of dependents you claim.
The AGI is an individual's total annual gross income minus specific deductions. It is used to calculate taxable income.
Because AGI is a rough estimate of how much money you're making, the IRS also used it - and will likely use it again - to calculate how much money to give you in a stimulus check.
With the first stimulus check, they gave $ 1,200 to people who had an AGI below $ 75,000 a year, to couples filing jointly who earned less than $ 150,000, and to people filing as a head of household who earned less than $ 112,500.
As from those thresholds, stimulus payments shrank by $ 5 for every $ 100 over the limit, as income rose, and vanished completely above $ 198,000 for couples filing a joint return, $ 136,500 for taxpayers filing as head of household, and $ 99,000 for all others.
In the case of checks sent by mail, the AGI has also determined the mailing date, prioritizing those with the lowest incomes and ending with those who earned the most.
So, if the second stimulus check is dealt with under the same terms, knowing your AGI is essential.
Where to find your AGI
If you filed your 2019 tax return, you can find it in your paper records. If you filed them through software, you should find them in that same program on your return copy.
You will find their AGI on line 8b of the 2019 federal tax form 1040.
If you did not file taxes last year, you can find your AGI on your 2018 federal income tax return, online 7 of tax form 1040.