What is the Stimulus Check?
The Economic Impact Payment, commonly known as the stimulus check, was a direct payment to Americans as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act, signed into law on March 27, 2020. This $2.2 trillion economic stimulus package was designed to provide financial relief to individuals, families, and businesses affected by the COVID-19 pandemic.
The stimulus payments were technically advance refundable tax credits against 2020 federal income taxes. This means the payments are not taxable income and do not reduce your 2020 refund or increase your 2020 tax liability.
- $1,200 per eligible adult ($2,400 for married couples)
- $500 per qualifying child under age 17
- Based on 2018 or 2019 tax return information
- Payments began in mid-April 2020
- Not taxable and does not need to be repaid
Who is Eligible?
To receive a stimulus payment, you must meet all of the following requirements:
Basic Eligibility Requirements
- Have a valid Social Security Number (SSN)
- Be a U.S. citizen, permanent resident, or qualifying resident alien
- Not be claimed as a dependent on someone else's tax return
- Have filed a 2018 or 2019 tax return, OR be a Social Security, SSDI, SSI, or Railroad Retirement recipient
Income Requirements for Full Payment
| Filing Status | Full Payment | Reduced Payment | No Payment |
|---|---|---|---|
| Single | Up to $75,000 | $75,001 - $99,000 | Above $99,000 |
| Married Filing Jointly | Up to $150,000 | $150,001 - $198,000 | Above $198,000 |
| Head of Household | Up to $112,500 | $112,501 - $136,500 | Above $136,500 |
How Much Will I Receive?
The payment amount depends on your filing status, income, and number of qualifying children:
- Single Filers: Up to $1,200
- Married Filing Jointly: Up to $2,400
- Head of Household: Up to $1,200
- Per Qualifying Child: $500 additional
Qualifying Child Requirements
To receive the $500 per child payment, the child must:
- Be under age 17 at the end of 2019
- Be your son, daughter, stepchild, foster child, sibling, or descendant of any of these
- Live with you for more than half the year
- Not provide more than half of their own support
- Have a valid Social Security Number
Understanding Income Phase-Out
If your income exceeds the threshold for your filing status, your payment is reduced. The phase-out rate is $5 for every $100 of income above the threshold.
Reduction Amount = (AGI - Income Threshold) × 5%For example, a single filer with $85,000 AGI:
($85,000 - $75,000) × 5% = $500 reduction$1,200 - $500 = $700 payment
Child Payments Explained
Unlike adult payments, child payments under the CARES Act had specific restrictions:
- Age Limit: Only children under 17 qualified (born after December 31, 2002)
- No Limit on Number: You could receive $500 for each qualifying child
- SSN Required: Each child must have a valid Social Security Number
- Adult Dependents: College students and elderly parents claimed as dependents did not qualify
Example Calculation
Example: Family of Four
Scenario: Married couple with 2 children (ages 8 and 12), AGI of $140,000
- Base payment (married): $2,400
- Child payment: 2 × $500 = $1,000
- Total before phase-out: $3,400
- Income is under $150,000 threshold
- Phase-out reduction: $0
- Final Payment: $3,400
Example: Single with Reduced Payment
Scenario: Single filer with no children, AGI of $85,000
- Base payment (single): $1,200
- Child payment: $0
- Total before phase-out: $1,200
- Amount over threshold: $85,000 - $75,000 = $10,000
- Phase-out reduction: $10,000 × 5% = $500
- Final Payment: $700
When Will I Receive Payment?
The IRS distributed payments based on the method of payment:
| Payment Method | Timeline |
|---|---|
| Direct Deposit (bank info on file) | Mid-April 2020 |
| Social Security Recipients | Late April 2020 |
| Paper Check (mailed) | May - August 2020 |
| Debit Card (EIP Card) | May - June 2020 |
Frequently Asked Questions
Is the stimulus payment taxable?
No, the Economic Impact Payment is not considered taxable income. It will not reduce your tax refund or increase the amount you owe when you file your 2020 tax return.
Do I have to pay it back?
No, the stimulus payment does not need to be repaid. Even if your 2020 income ends up being higher than your 2018/2019 income, you will not owe the difference back to the IRS.
What if I didn't file taxes?
If you didn't file a 2018 or 2019 tax return but receive Social Security, SSDI, SSI, or Railroad Retirement benefits, you automatically received a payment. Non-filers who don't receive these benefits needed to use the IRS Non-Filers tool to register for payment.
Why did I get less than expected?
Common reasons for reduced payments include:
- Income above the phase-out threshold
- Children over age 16 (did not qualify)
- Outstanding child support debts (payments could be offset)
- Missing or invalid Social Security Numbers
Can college students receive a payment?
Under the CARES Act, college students who were claimed as dependents on their parents' tax returns did not receive their own stimulus payment. Additionally, their parents did not receive the $500 child credit for them since they were over 16.
What about subsequent stimulus payments?
This calculator is for the first round of stimulus payments under the CARES Act. Additional rounds of stimulus payments were authorized under later legislation (December 2020 and March 2021) with different rules and amounts.