Max income with tax credit

Per the IRS, for married filing jointly, the third stimulus payment is reduced starting at $150,000 adjusted gross income, and eliminated at $160,000.

 

https://www.irs.gov/newsroom/questions-and-answers-about-the-third-economic-impact-payment-topic-b-eligibility-and-calculation-of-the-third-payment

What does “adjusted” gross income mean

Yes it is your combined income that determines the EIP payments for a joint return.   They use your Adjusted Gross Income  (found on line 11 of your 2020 Form 1040)

 

For the first two EIP payments:

 

A1. ..........your adjusted gross income (AGI) does not exceed:

• $150,000  if married and filing a joint return
• $112,500 if filing as  head of household or
• $75,000  for eligible individuals using any other filing status
  Your payment will be reduced by 5% of  the amount by which your AGI exceeds the applicable threshold above.

For the 3rd EIP payment:

 

Eligible individuals don’t need a minimum income for the third payment. However, for higher income individuals, the payment amount is reduced when their adjusted gross income exceeds the following thresholds:

• $150,000 for taxpayers filing a joint return or filing a return as a qualifying widow or widower
• $112,500 for taxpayers filing as head of household
• $75,000 for eligible individuals using any other filing status

The third payment is reduced if their AGI is above these thresholds. No payment is made when AGI is at least the following amount:

• $160,000 for taxpayers filing a joint return or filing a return as a qualifying widow or widower
• $120,000 for taxpayers filing as head of household
• $80,000 for eligible individuals using any other filing status

https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income

I am looking into this tax year 2021 for future payments. Do we know how long they are to continue? And I assume if so they would be based on the same income levels for the following tax year(?)

The IRS defined adjusted gross income here:

https://www.irs.gov/e-file-providers/definition-of-adjusted-gross-income

What future payments are you asking about?   Your original question referred to stimulus payments so that is what I gave you information for.    There have been three stimulus payments and there are no future stimulus payments coming unless there is another act of Congress.

 

Are you really asking about the

child tax credit

?  That is a different issue. The new child tax credit is only for tax year 2021 unless Congress acts to extend it to future years.

 

Here is information about the child tax credit:

 

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-a-general-information

https://www.irs.gov/credits-deductions/2021-child-tax-credit-and-advance-child-tax-credit-payments-topic-c-calculation-of-the-2021-child-tax-credit

I apologize, that is what I was trying to understand. The monthly payments that we are receiving- from the link attached above it states this is not taxable income? How long will we be receiving these payments?

So-----you are asking about the child tax credit payments.    You get the payments from July 2021 through the end of 2021.    Then you get the other half of the CTC as a refundable credit on your 2021 tax return.

 

Perfect. And did I understand that correctly the the CTC funds received do not qualify toward our AGI?

They do not count toward AGI, as they are not income at all. They are an advance payment of a tax credit.