The third stimulus check under the American Rescue Act was designed to benefit individuals and families struggling to keep up with expenses due to the economic downturn triggered by the pandemic. But released data has revealed that families earning as much as $200,000 have also benefited from the aid.
As the authorities keep sending more stimulus payments every week, a clear picture has emerged that shows how the process has benefited certain sections of society. More than 163.5M checks have been dispatched after the Rescue Plan bill was signed by President Biden in March this year. Around $389.9B has been paid by the Federal Government.
The Third Stimulus Check Has Benefited Even High-Earners
Fresh data obtained by the IRS revealed that the money has benefited even high-earning individuals and families. Even families with an AGI of $200,000 and above have benefited from the third stimulus check.
As many as 127,751 stimulus payments have benefited households whose Adjusted Gross Income is above $200,000, recent tax returns have revealed. The total amount given to such families and individuals is worth $392.3M.
The stimulus check amount was not $1,400 for all beneficiaries. For individual filers, the stimulus amount was phased out if earnings were above $75,000, and for couples, it is $150,000.
The payments are supposed to stop completely for individual earnings of $80,000 and above, and $160,000 for a married couple filing jointly. But families with more dependents will receive even above the entitlement limit.
Many families and individuals received their stimulus checks based on the 2019 returns. The numbers were high as the third stimulus payments began to be dispatched during the tax filing season in March. So families who earned much more in 20020 than they did in 2019 would have received a stimulus check, perhaps even the maximum of $1,400 per head.
Such families are not required to refund the stimulus payments even if subsequent AGI figures were much higher than the cut-out figures put out by the IRS.
Figures released by the IRS have revealed that people with AGI below $50,000 received 52% of the stimulus funds. A further 10% of beneficiaries were people whose low income does not require them to file tax returns. A total of 85% of the total payments of the Economic Impact Payments went to individuals and families with AGI below $100,000.