Cash Act 2020 Stimulus Payment Calculator

What Is the CASH Act 2020?

The Caring for Americans with Supplemental Help (CASH) Act of 2020 (H.R. 9051) was legislation passed by the U.S. House of Representatives on December 28, 2020. The bill proposed to increase the second round of federal Economic Impact Payments from $600 to $2,000 per eligible adult and from $600 to $2,000 per qualifying dependent. While the Senate did not pass the standalone bill, understanding its payment formula helps taxpayers audit their 2020 stimulus records and verify any Recovery Rebate Credit claimed on their 2020 federal return.

The Payment Formula

The CASH Act 2020 stimulus payment applies the standard Economic Impact Payment phase-out structure, scaled to the proposed $2,000 base amounts:

P = max(0, B − 0.05 × max(0, AGI − T))

• P — Final payment amount (floored at $0; payments are never negative)
• B — Base payment = ($2,000 × eligible adults) + ($2,000 × qualifying dependents)
• AGI — Adjusted Gross Income from Form 1040, Line 11
• T — Phase-out threshold, set by federal tax filing status

Phase-Out Thresholds by Filing Status

• Single or Married Filing Separately: $75,000
• Head of Household: $112,500
• Married Filing Jointly or Qualifying Widow/Widower: $150,000

For every $100 of AGI above the applicable threshold, the payment is reduced by $5. This 5% reduction rate produces a smooth, gradual phase-out rather than an abrupt income cliff.

Why a 5% Phase-Out Rate?

The 0.05 multiplier mirrors the income-reduction design used in the CARES Act and the Consolidated Appropriations Act of 2021, as documented in IRS Economic Impact Payment guidance. A graduated phase-out preserves partial benefits for moderate-income households and avoids the sharp marginal-rate spike that a hard cutoff would create. The complete phase-out point — where P reaches exactly $0 — is calculated as:

Phase-out AGI = T + (B ÷ 0.05) = T + 20 × B

Worked Examples

Example 1: Single Filer, No Dependents

A single taxpayer with an AGI of $85,000 and no qualifying dependents:

• Base payment (B) = 1 adult × $2,000 = $2,000
• Phase-out threshold (T) = $75,000
• AGI excess = max(0, $85,000 − $75,000) = $10,000
• Reduction = 0.05 × $10,000 = $500
• Final payment (P) = max(0, $2,000 − $500) = $1,500

Example 2: Married Filing Jointly With Two Children

A married couple with an AGI of $160,000 and 2 qualifying children:

• Base payment (B) = (2 × $2,000) + (2 × $2,000) = $8,000
• Phase-out threshold (T) = $150,000
• AGI excess = max(0, $160,000 − $150,000) = $10,000
• Reduction = 0.05 × $10,000 = $500
• Final payment (P) = max(0, $8,000 − $500) = $7,500

Example 3: Single Filer at Complete Phase-Out

A single filer with an AGI of $115,000 and no dependents:

• B = $2,000; T = $75,000; Excess = $40,000; Reduction = $2,000
• P = max(0, $2,000 − $2,000) = $0

The full phase-out for a childless single filer occurs precisely at $115,000 AGI.

Understanding Adjusted Gross Income

AGI appears on Form 1040, Line 11 and equals gross income minus above-the-line deductions such as deductible IRA contributions, student loan interest, self-employment tax, and health savings account contributions. The IRS used the most recently processed tax return (2019 or 2018) to issue initial payments, with any shortfall claimable as a Recovery Rebate Credit on the 2020 return.

State Residency and CASH Act Payments

CASH Act payments are administered entirely at the federal level. State of residence does not affect payment amounts. All 50 states, the District of Columbia, and U.S. territories apply the same AGI thresholds and per-person amounts. Some states independently issued supplemental pandemic relief in 2020–2021, but those are separate programs not reflected in this calculator.

Authoritative Sources

This calculator implements the phase-out formula as specified in H.R. 9051 — CASH Act of 2020 (116th Congress) and applies income eligibility rules consistent with IRS Economic Impact Payment policy. The $2,000 per-person amounts reflect the specific CASH Act proposal, which exceeded the $600 amount enacted in the Consolidated Appropriations Act of 2021.