1400 Stimulus Payment: In response to the COVID-19 pandemic, the U.S. government implemented a series of stimulus payments to provide financial relief and help prevent individuals from falling into poverty. These payments were part of broader economic measures introduced to support those affected by the crisis.
Starting in March 2020, the Coronavirus Aid, Relief, and Economic Security (CARES) Act authorized Economic Impact Payments (EIPs) for eligible individuals. Under this legislation, adults could receive up to $1,200 each, while families with qualifying children under the age of 17 could receive an additional $500 per child.
This program aimed to deliver timely financial assistance to those struggling with the economic fallout of the pandemic.
If an individual’s adjusted gross income (AGI) exceeded $75,000 ($150,000 for married couples filing a combined return), the payments were lowered. These Economic Impact Payments provide up to $3,400 in direct financial aid for a household of four.
1400 Stimulus Payment
After the crisis, in early March 2021, the American Rescue Plan Act was launched, offering economic impact payments of up to $1,400 for qualified people or $2,800 for married couples filing jointly. Additionally, each qualifying dependent, including adult dependents, would get $1,400.
According to the US Treasury’s website:
The American Rescue Plan requests an additional “plus-up” payment for this third round of Economic Impact Payments. This payment is based on data (such as a recently filed 2020 tax return) that the IRS receives after making the first payment to the qualified individual.
Furthermore, the American Rescue Plan offers $1,400 payments for all qualifying family dependents, not only qualifying children under the age of 17, increasing direct financial assistance to American families.
Additionally, according to the Treasury: “Generally, a taxpayer with an AGI of up to $75,000 for singles and married individuals filing separate returns, up to $112,500 for heads of household, and up to $150,000 for married couples filing joint returns and surviving spouses will be eligible for the full amount of the Economic Impact Payment.” If an eligible individual’s AGI exceeds specified thresholds, their payment amounts will be lowered.”
