OBBBA Base Payment System: $120/year to 10% of AGI with $50 Dependent Credit
Interactive Payment Calculator
Your RAP Plan Monthly Payment
$0
Note: RAP Plan has a minimum payment of $10/month, even if dependent credits would reduce your payment below this amount.
RAP Plan Base Payment Structure (Annual)
Adjusted Gross Income Range
Base Payment Amount
Effective Rate
$0 - $10,000
$120 per year
1.2% (at $10k)
$10,001 - $20,000
1% of AGI
1.0%
$20,001 - $30,000
2% of AGI
2.0%
$30,001 - $40,000
3% of AGI
3.0%
$40,001 - $50,000
4% of AGI
4.0%
$50,001 - $60,000
5% of AGI
5.0%
$60,001 - $70,000
6% of AGI
6.0%
$70,001 - $80,000
7% of AGI
7.0%
$80,001 - $90,000
8% of AGI
8.0%
$90,001 - $100,000
9% of AGI
9.0%
$100,001+
10% of AGI
10.0%
Dependent Credit: $50 per month per IRS dependent under Section 152 (includes children, elderly parents, relatives, and qualifying household members)
Minimum Payment: $10 per month ($120 annually) - payments cannot go below this amount
RAP Payment Examples Chart - Income Cliff Demonstration
AGI
Base Payment
0 Deps
1 Dep
2 Deps
3 Deps
4 Deps
5 Deps
RAP Plan Payment Calculation Steps
Step 1: Determine base annual payment using AGI and bracket table above
Step 2: Divide by 12 for monthly base payment
Step 3: Subtract $50 per IRS dependent per month
Step 4: Final payment = MAX($10, monthly base payment - dependent credits)
• RAP uses percentage of AGI (not taxable income like tax brackets) • Fixed $120 annual payment for AGI ≤ $10,000 • Linear progression from 1% to 10% based on income brackets • $50 monthly credit per IRS dependent (Section 152) can reduce payments to minimum $10 • IRS dependents include: children, elderly parents, relatives living with you, and other qualifying household members • Major income cliffs occur at $10k, $20k, $30k, etc. bracket boundaries
About IRS Section 152 Dependents: Qualifying Children: Your children under 19 (or under 24 if full-time students), stepchildren, adopted children, foster children, siblings, half-siblings, step-siblings, or descendants of any of these.
Qualifying Relatives: Parents, grandparents, adult children (over 24), siblings, nieces, nephews, aunts, uncles, in-laws, or non-relatives who live with you all year as household members.
Important: Final regulations will clarify whether dependents must be claimed on your tax return or simply meet IRS Section 152 eligibility requirements. For complex family situations, consult a tax professional.
