How this calculator works
The first US economic impact payment was created by the Coronavirus Aid, Relief, and Economic Security Act, signed on 27 March 2020. It paid $1,200 for each eligible adult, $2,400 for a married couple filing jointly and $500 for each qualifying child under 17. Older children and adult dependants received nothing in this round, which was one of the main criticisms of the design. The payment was an advance of a tax credit, so the amount was worked out from the return the Internal Revenue Service already had: the 2019 return if it had been filed, otherwise the 2018 return. The payment fell by $5 for every $100 of adjusted gross income above $75,000 for single filers, $112,500 for heads of household and $150,000 for married couples filing jointly, and stopped entirely once it reached zero. For a single filer with no children that happens at $99,000; for a married couple with no children, at $198,000. Each child adds $10,000 to the income at which the payment disappears. People whose 2020 income turned out lower than the figure used could claim the difference as a recovery rebate credit on their 2020 return. This calculator shows the payment under those rules; it is a historical estimate, not a current benefit.
Formula
Base = adult amount + $500 x qualifying children under 17, where the adult amount is $1,200 for single and head of household or $2,400 for married filing jointly. 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 $60,000 of income has a base of $1,700 and an income below the $75,000 threshold, so the payment is $1,700. At $85,000 the excess is $10,000, the reduction is $500 and the payment is $1,200. A married couple with two children and $160,000 of income has a base of $3,400, an excess of $10,000 and a reduction of $500, leaving $2,900. Their payment reaches zero at $150,000 + $68,000 = $218,000.
Advertisement
Frequently asked questions
Was the first stimulus payment a loan or a grant?
It was an advance payment of a tax credit, which makes it a grant for anyone who qualified. It did not have to be repaid, and it was not taxable income.
Which year of income was used?
The 2019 return if it had been filed when the payment was calculated, otherwise the 2018 return. Later rounds used more recent returns and allowed a reconciliation on the following year's return.
Did adult dependants get anything?
Not in this round. Only children under 17 attracted the $500 payment. Adult dependants and older children were included in the third round in 2021.
What if my income fell in 2020?
The payment was based on the earlier return, but a lower 2020 income could produce a larger recovery rebate credit when the 2020 return was filed. The calculator does not model that reconciliation.
Is there a Canadian equivalent?
Canada used different programmes, including the Canada Emergency Response Benefit for lost income and a one-time payment for seniors and people with disabilities. The US stimulus credit has no direct Canadian counterpart.