Adjusted Gross Income (AGI) is defined as: GROSS INCOME (ALL INCOME) minus adjustments to income. Gross income includes:
as well as other income.
Adjustments to Income include such items as:
Student loan interest
ontributions to a retirement account.
Who is eligible for the 1st round of economic impact payment?
Tax filers with adjusted gross income up to $75,000 for individuals and up to $150,000 for married couples filing joint returns will receive the full payment. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 and $198,000 for joint filers with no children are not eligible. Social Security recipients and railroad retirees who are otherwise not required to file a tax return are also eligible and will not be required to file a return. Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples and up to $500 for each qualifying child.
Who’s eligible for the 2nd round of Economic Impact Payments? (added January 5, 2021)
Generally, if you’re a U.S. citizen or U.S. resident alien, you may be eligible for $600 ($1,200 for a joint return), plus $600 for each qualifying child, if you (and your spouse if filing a joint return) aren’t a dependent of another taxpayer on a 2019 tax return, have a social security number (SSN) valid for employment (see exception when married filing joint) and your adjusted gross income (AGI) does not exceed:
• $150,000 if married and filing a joint return or if filing as a qualifying widow or widower;
• $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.
You aren’t eligible for a payment if any of the following apply to you:
• You were claimed as a dependent on another taxpayer’s 2019 tax return (for example, a child or student who may be claimed on a parent’s tax return or a dependent parent who may be claimed on an adult child’s tax return).
• You don’t have an SSN that is valid for employment issued before the due date of your 2019 tax return (including any extensions).
• You’re a nonresident alien.
• Someone was deceased before 2020.
• Are an estate or trust.
However, you may be eligible to claim a Recovery Rebate Credit on line 30 of your 2020 tax return.