The United States Internal Revenue Service (IRS) revealed data that showed the number of residents who received the third stimulus checks worth $1,400.
The statistics showed that despite the income limits where people with adjusted gross incomes of more than $200,000 should not receive any money many Americans who fall under the category received some amount.
The IRS released a report that showed 127,751 payments were made to residents paying taxes with an adjusted gross income of over $200,000. The total amount of money given to the people in this category was $392.3 million.
Third Stimulus Check
The total number of third stimulus checks given out was 163.5 million, which totaled a financial payment of $389.9 billion across all taxpayers. Many were surprised to see that people within that income bracket received any sort of payment despite the limitations barring them from receiving any amount.
Congress passed the American Rescue Plan Act in March and set the income limitations to restrict the number of people getting the stimulus checks, focusing only on those with severely poor income. The legislation included payments of up to $1,400 per adult and another $1,400 for each child or adult dependent. Officials put certain restrictions to limit the number of people receiving the checks, CNBC reported.
The full amount of the third stimulus check will be given to individuals who had adjusted gross income of up to $75,000, heads of households with $112,500, and couples who file jointly with $150,000.
The IRS phased the third stimulus checks for incomes above certain thresholds where adjusted gross incomes of $80,000 for individuals, $120,000 for heads of households, and $160,000 for couples filing jointly would not receive any money.
Experts argued part of the reason why money was given out to people who should be eligible was that the payments were sent out based on 2019 returns and the 2020 filings resulted in higher income numbers, Erica York, a Tax Foundation economist, said. She argued that if that were really the case, the recipients would not be legally required to return the money as it is rightfully theirs.
Fourth Stimulus Checks?
Amid the distribution of the third stimulus checks, many people are still wondering if there would be a fourth payment program. At the end of last month, United States President Joe Biden and a bipartisan group of senators discussed the details of a potential infrastructure deal that resembled the distribution of economic stimulus payments to individuals and families.
The Democratic leader said he was "open to a range of ideas" regarding another round of stimulus payments to help many residents who are still struggling amid the pandemic. White House Press Secretary Jen Psaki said early last month that she had already pushed forward with efforts that would be effective in assisting Americans in the short term, CNET reported.
Many lawmakers are also urging the government to put out more financial support to Americans, whether it be a one-time payment program or a multiple payment scheme. The support comes after public demand and financial analysis suggesting the need for more money into people's pockets.
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