How this calculator works
The second round of US economic impact payments was part of the $900 billion COVID relief package signed on 27 December 2020. It paid $600 for each eligible adult, $1,200 for a married couple filing jointly and $600 for each qualifying child under 17. Adult dependents such as college students received nothing in this round, unlike the third round in 2021. The payment was an advance of a tax credit and was reduced by $5 for every $100 of adjusted gross income above $75,000 for single filers, $112,500 for heads of household or $150,000 for joint filers. For a childless filer that means the payment disappears at $87,000 single or $174,000 joint, and each child adds $12,000 to the income point where the payment reaches zero. Eligibility was based on 2019 income, or 2018 where 2019 had not been filed. A person whose 2020 income was lower could claim the difference as a recovery rebate credit on the 2020 return. This calculator estimates the payment under those rules.
Formula
Base = adult amount + $600 x children under 17, where the adult amount is $600 for single and head of household or $1,200 for joint filers. Payment = base - 5% x max(0, income - threshold), never below zero. Threshold = $75,000 single, $112,500 head of household or $150,000 joint. The payment reaches zero at threshold + base / 0.05.
Worked example
A single filer with one child and $70,000 of income has a base of $1,200 and is below the threshold, so the payment is $1,200. At $80,000 the excess is $5,000, the reduction is $250 and the payment is $950. A joint filer with two children has a base of $2,400 and reaches zero at $150,000 + $48,000 = $198,000.
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Frequently asked questions
Who counted as a qualifying child?
A child under 17 at the end of the tax year who met the tax rules for a qualifying child. Older children and adult dependents did not qualify for the $600 dependent amount in this round.
When were the payments made?
The IRS began issuing them in late December 2020 and continued into January 2021. People who did not receive a payment they were due could claim it as a recovery rebate credit on their 2020 return.
Was the payment taxable?
No. It was an advance payment of a refundable tax credit, not income, and it did not reduce a refund or increase tax owed.
What about mixed-status families?
This round extended eligibility to households where one spouse had a Social Security number, even if the other did not. The rule was also applied retroactively to the first round.