Not only is the second round of coronavirus stimulus checks worth less than the first payment, but the income limits are also less generous than they were under the Coronavirus Aid, Relief and Economic Recovery, or CARES, Act.
Now, individuals earning up to $87,000 and couples earning up to $174,000 will receive some form of payment. Individuals who earned up to $75,000 in 2019 will get the full amount of $600 and couples that earned up to $150,000 will receive $1,200.
This round of checks is then reduced by 5% "for every dollar of income over those limits, or $50 for every $1,000 exceeding the phaseout threshold," says Garrett Watson, senior policy analyst at the Tax Foundation. "Because this payment is smaller than the CARES Act rebate, the upper income bound to receive a partial payment is lower."
Under the CARES Act, the $1,200 payments for individuals phased out at an income of $99,000, and the $2,400 payments for couples phased out at a combined income of $198,000.
Taxpayers will also receive $600 for each dependent under age 17. Here are the other important details to know about the second set of payments.