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Thursday, September 23, 2021

Stimulus Check Worth $1400 Went To High-Income Accounts As Well

The third stimulus check was passed with the promise of supporting American households that were struggling financially. However, the Internal Revenue Service has reported that there have been discrepancies on that front. People who earned over $200,000 have also been paid a stimulus check.

Stimulus Check For Those Who Did Not Need It

The IRS has continued distributing stimulus payments in the latest batch of government-approved stimulus checks. Since it has begun, the statistics regarding the distribution process are gradually becoming clearer.

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The authority overseeing taxes has reported that the number of stimulus payments that have been delivered is over 163.5 million. This has cost the US federal government $389.9Bn since March when Congress had passed Biden’s American Rescue Plan.

The IRS’ latest report has now tried to track down the distribution pathways of the latest stimulus checks. The reports reveal that a surprising number of them have gone to families that most consider having a high annual earning. The report states that the number of stimulus checks that have gone the way of people with an AGI over $200,000 is 127,751. This accounts for $392.3Mn in total.

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But how did this even happen? The first point in such cases is that such a household did not possibly get the complete payment of $1400 for each individual. For private individuals, the stimulus amount starts decreasing in phases for individuals with AGIs over $75,000. For married filers, this figure stood at $150,000.

After that, those whose AGIs were more than $80,000 were not supposed to get the third checks at all. For married couples, this figure stood at $160,000. But, a spokesperson from the IRS confirmed that if a household had a sufficient number of qualifying dependents, they may have been entitled to some amount of the stimulus check.

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