Overview of the Three Relief Bills
Following the initial CARES Act stimulus distribution, Congress proposed three separate frameworks for a second round of payments. The HEROES Act, introduced by House Democrats, outlined a $3 trillion relief package with the most generous individual payment structure. The HEALS Act, championed by Senate Republicans, proposed a $1 trillion approach with more modest per-person amounts. The CAAF Act represented another Republican alternative with intermediate payment levels.
All three bills shared a common philosophy: phased payments based on income level, with full amounts available to lower earners and reduced payments for middle-income households. The critical distinctions lay in base payment amounts and how dependents were valued in the calculation.
How Stimulus Payments Were Calculated
Each bill's payment formula began with a base amount determined by filing status, then adjusted downward for higher incomes. Dependent bonuses were added on top of the base calculation. The income thresholds remained consistent across all three proposals.
Payment = Base Amount + (Dependents × Dependent Bonus) − Phase-out Reduction
Phase-out = (AGI − Threshold) × 5% (for incomes above threshold)
Full payment threshold: $75,000 (single) / $150,000 (married)
Payments eliminated above: $99,000 (single) / $198,000 (married)
Base Amount— Initial payment per filer: $1,200 (HEROES/HEALS) or $1,000 (CAAF) for single filers; $2,400 (HEROES/HEALS) or $2,000 (CAAF) for joint filersDependent Bonus— Additional payment per qualifying dependent under age 17; amounts varied between bills (typically $500–$1,200 per child)AGI— Adjusted gross income from your most recent tax return (2018 or 2019)Phase-out Reduction— Five percent reduction for every dollar earned above the full-payment threshold, until eligibility ceases
Key Differences Between HEROES, HEALS, and CAAF
While all three bills maintained identical income eligibility thresholds, the payment structures diverged significantly:
- Base payments: HEROES and HEALS both offered $1,200 for single filers and $2,400 for joint filers. CAAF reduced these to $1,000 and $2,000 respectively, a $200–$400 difference per household.
- Dependent treatment: The three bills valued child dependents differently, which created the largest disparity for families with multiple children. A household with four dependents could see differences of $1,000 to $2,000 depending on which bill passed.
- Adult dependents: Treatment of dependents over age 17 varied, with HEROES offering the broadest coverage and CAAF offering more limited benefits.
- Overall generosity: HEROES represented the most expansive approach, while CAAF was the most conservative in total outlay.
Important Considerations When Using This Calculator
These three proposals operated under different rules and timelines, so understanding the nuances is crucial.
- Income thresholds are steep cliffs, not smooth slopes — At exactly $99,000 AGI for single filers, you receive nothing. At $98,999, you receive a partial payment. The 5% phase-out creates sharp drops rather than gradual reductions, so being $50 below the threshold versus $50 above matters significantly.
- Which tax year determines your eligibility — The IRS could use either your 2018 or 2019 return to calculate payments. If you had a major income change between those years, you might qualify under one year's filing but not the other. The calculator shows both scenarios so you can identify which is more favorable.
- Dependent definitions are narrow and specific — Only dependents under age 17 (or under 18, depending on the bill) qualified for bonuses. College-aged dependents and adult relatives living with you typically did not count, even if you claimed them on your return.
- These are proposals, not final law — None of these three bills passed in their original form. Congress ultimately negotiated compromises with different payment structures. Use this calculator to understand the policy debate, not to predict actual payments received.
Timeline and Payment Distribution
The timing of any stimulus distribution depended on when Congress reached agreement and the President signed legislation. Had the HEALS, HEROES, or CAAF Act passed before Congress's August recess in 2020, the IRS could have initiated payments in late August or early September. If negotiations extended past early August, implementation would have been delayed until late September or October.
The IRS's distribution process would have leveraged the existing taxpayer database from the first stimulus round, accelerating processing compared to the initial rollout. Direct deposits to taxpayers' known bank accounts would have arrived first, followed by mailed checks for those without banking information on file. The entire distribution phase typically completed within 3–6 weeks of bill passage.