Stimulus Check $40k Cap Calculator — Phase-Out from $40,000 AGI
Model a stimulus check scenario where the $1,200-per-adult payment begins phasing out at $40,000 AGI (single). All amounts and phase-out thresholds are editable, so you can compare different policy proposals side-by-side.
Filing status
USD
USD
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Full payment — AGI is below the phase-out threshold.
- 1
Full payment (before phase-out)
1 × 1,200 + 0 × 500 = 1,200Adults times per-adult amount plus qualifying children times per-child amount. - 2
Income above threshold
35,000 − 40,000 = 0 - 3
Phase-out reduction
0 × 5% = 0 - 4
Stimulus payment
max(0, 1,200 − 0) = 1,200
How does this calculator work?
Stimulus payment = (adults × $1,200 + children × $500) minus 5% of AGI above the phase-out threshold ($40k single / $80k joint in this model). Zero above threshold + payment/0.05. All amounts are editable estimates — update the threshold field to match any enacted or proposed policy.
Formula
How this is calculated
Under the 2020 CARES Act, the $1,200-per-adult stimulus check began phasing out at $75,000 AGI (single), $112,500 for heads of household, and $150,000 for married couples filing jointly. Policy discussions included proposals to lower these thresholds — this calculator lets you explore a variant where phase-out begins at $40,000 (single) / $60,000 (HOH) / $80,000 (MFJ), with the same 5% reduction rate ($1 per $20 above the threshold).
The 5% phase-out rate means the full payment is lost over an AGI range of (full payment ÷ 0.05). For a single adult with no children: $1,200 ÷ 0.05 = $24,000 phase-out range, so payment reaches zero at $40,000 + $24,000 = $64,000 AGI. Each qualifying child adds $500 to the full payment and $10,000 to the zero-point AGI.
All inputs — payment per adult, payment per child, phase-out rate and thresholds — are editable. This lets you model enacted policies (CARES Act: use $75,000 threshold), alternative proposals or other countries' income-tested benefit schemes that follow the same arithmetic structure.
Frequently asked questions
The enacted CARES Act (March 2020) used a $75,000 AGI threshold for single filers (fully phasing out at $99,000), $112,500 for heads of household, and $150,000 for married filing jointly. The $40,000 start in this calculator is a hypothetical lower-cap scenario. Change the threshold field to $75,000 to model the CARES Act.
AGI is your total income minus specific deductions (retirement contributions, student loan interest, etc.) — it appears on Line 11 of IRS Form 1040. Stimulus eligibility used 2019 or 2020 AGI depending on whether you had already filed for the year when the payment was issued.
The phase-out reduces the total household payment — not each adult separately. For a married couple with two children, the full payment of $2,400 + $1,000 = $3,400 is reduced by $1 per $20 of joint AGI above $80,000 in this model, with the full amount zeroing out at $80,000 + $68,000 = $148,000.
Also known as
TG we-Calculate Editorial Team. (2026). Stimulus Check $40k Cap Calculator — Phase-Out from $40,000 AGI [Online calculator]. TG we-Calculate. https://we-calculate.com/calculator/stimulus-check-40k-cap-calculator
TG we-Calculate Editorial Team. "Stimulus Check $40k Cap Calculator — Phase-Out from $40,000 AGI." TG we-Calculate. 2026. https://we-calculate.com/calculator/stimulus-check-40k-cap-calculator.
TG we-Calculate Editorial Team, "Stimulus Check $40k Cap Calculator — Phase-Out from $40,000 AGI," TG we-Calculate, 2026. [Online]. Available: https://we-calculate.com/calculator/stimulus-check-40k-cap-calculator
@misc{wecalculate_stimulus_check_40k_cap_calculator, title = {Stimulus Check $40k Cap Calculator — Phase-Out from $40,000 AGI}, author = {{TG we-Calculate Editorial Team}}, howpublished = {\url{https://we-calculate.com/calculator/stimulus-check-40k-cap-calculator}}, year = {2026}, note = {TG we-Calculate} }
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