Question

Coronavirus Stimulus for dependents with income above 198k cutoff?

Forum|Forum|6 years ago
April 17, 2020
1 reply
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TurboTax Calculator shows that I will receive some stimulus for my 2 dependents. I'm married filing jointly and made a little more than the 198k "cutoff". I can't find anywhere how to calculate how much I should get. Most places say you get nothing if you make over 198k, but TurboTax and other online calculators say I get some (as long as I enter in dependents, it seems). What exactly are the rules here when you claim dependents?

TurboTax's flow chart shows I "may" get some, but no guidance on how to calculate it:

https://ttlc.intuit.com/community/tax-topics/help/how-much-stimulus-money-will-i-get/00/1398243

N

NCPERSON1

up to $150,000 you get the whole stimulus, but at that point as your income goes beyond $150,000, you lose 5% times your income that exceeds $150,000

So if your income was $200,000 and you were expected to receive $3400, that would be reduced by $50,000*5% or $2500. So you'd be expected to receive $900.

(the $198,000 cutoff assumes no children as $48,000 *5% is $2400)

remember, children have to be under 17 years old to qualify for the $500.

and this is not well advertised (yet)

The stimulus payments are really based on your 2020 tax return (income, dependents, etc).
The IRS is using either 2018 or 2019 – whatever is available - to ESTIMATE that payment
When you file next year there will be a “settle up” section on the tax return.
If you are due more stimulus (and this would include where your income fell in 2020), you will receive it through the 2020 tax filing.
If you received too much, by law, you are not required to return