How this calculator works
The American Rescue Plan Act, signed on 11 March 2021, created a third round of economic impact payments of up to $1,400 for each eligible adult and each dependent, regardless of the dependent's age. A married couple filing jointly received up to $2,800 plus $1,400 per dependent. The payment fell as income rose, but the reduction worked differently from the first two rounds. Instead of taking 5% of the excess over the threshold, the payment was reduced in proportion to how far income had travelled across a fixed range: $5,000 for single filers, $7,500 for heads of household and $10,000 for joint filers. As a result every household, whatever its number of dependents, reached zero at the same income: $80,000 for single, $120,000 for head of household and $160,000 for joint filers. This calculator estimates the payment from adjusted gross income and the number of dependents. It assumes the filer and spouse, if any, had Social Security numbers and were not dependents of someone else. These payments were issued in 2021; anyone who missed one could claim it as a recovery rebate credit on a 2021 return.
Formula
Base = adult amount + $1,400 x dependents, where the adult amount is $1,400 for single and head of household, or $2,800 for married filing jointly. Threshold = $75,000 single, $112,500 head of household or $150,000 joint. Range = $5,000, $7,500 or $10,000 respectively. Payment = base x (1 - (income - threshold) / range) when income exceeds the threshold, otherwise the full base, and never below zero. The payment reaches zero at threshold + range.
Worked example
A single filer with one dependent and $77,000 of income has a base of $2,800 and a $5,000 range. Income is $2,000 over the $75,000 threshold, so the payment is $2,800 x (1 - 2,000 / 5,000) = $1,680. A joint filer with two dependents and $140,000 of income has a base of $5,600, is below the $150,000 threshold, and receives the full $5,600.
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Frequently asked questions
Is this payment still available?
The payments were issued in 2021. The programme has ended, so this calculator is a historical estimate. A person who was eligible but did not receive a payment could still claim the recovery rebate credit on a 2021 federal return, subject to the normal filing deadline rules.
Why does the payment reach zero at the same income regardless of dependents?
Because the reduction is not a fixed percentage of income. The whole payment, including the dependent amounts, is spread across a fixed income range. More dependents mean a larger payment and a steeper reduction, but zero arrives at the same income.
Do adult dependents count?
Yes. Unlike the first two rounds, the third payment included dependents of any age, including college students and adult relatives who qualify as dependents. One $1,400 amount applied to each.
Which income year is used?
The IRS used the most recent return it had processed, generally 2020, or 2019 if 2020 had not been filed. If 2021 income would have produced a larger payment, the difference could be claimed as a credit on the 2021 return.
Does this include the recovery rebate credit?
No. It estimates the payment under the original rules. The credit reconciles what was received with what was due based on the eventual 2021 return.