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Level 1
posted Jan 27, 2021 1:58:05 PM

Were stimulus payments for dependents reduced for incomes above $75,000 similar to how the main payments were?

I've seen where the main payments (ex. Round 1 $1,200 and Round 2 $600) are reduced $5 per $100 over $75,000.  I'd like to confirm if dependent payments (ex. Round 1 $500 and Round 2 $600) worked the same so a single dependent would be eligible for a Round 2 dependent payment of $400 if AGI was $79,000.

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1 Best answer
Expert Alumni
Jan 27, 2021 2:19:07 PM

When your AGI is above the threshold, the stimulus payment is reduced by 5% of the excess over the threshold. The reduction is applied once on the total amount of stimulus (including dependents) and not on the stimulus amount for each person.

 

Please see examples of the reduction calculation in this IRS document.

1 Replies
Expert Alumni
Jan 27, 2021 2:19:07 PM

When your AGI is above the threshold, the stimulus payment is reduced by 5% of the excess over the threshold. The reduction is applied once on the total amount of stimulus (including dependents) and not on the stimulus amount for each person.

 

Please see examples of the reduction calculation in this IRS document.