Money, National, News — April 12, 2020 at 7:21 pm

Coronavirus Stimulus Checks

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In March, the U.S. government presented a bill that would send many Americans stimulus payments to provide relief for economic hardship caused by the COVID-19 pandemic. The last time the government used stimulus checks was back in 2009 after the recession in 2008.

The Congressional Budget Office found the stimulus checks, along with other measures taken to kick start the economy, created between 1.6 million and 4.6 million jobs, increased the real GDP by between 1.1 and 3.1 percent, and reduced unemployment by between 0.6 and 1.8 percentage points by 2011.

Stimulus checks are meant to increase consumer spending activity, stimulating the economy; not fixing it instantly but helping it start up again.

To qualify for the stimulus check, certain criteria must be met by the tax payer. Your household’s annual income is a large factor in qualifying. Because the package is aimed at helping low- and moderate-income families, some wealthier families might not receive a stimulus check.

The amount you’ll receive will depend on your total income from filed taxes for 2019 or 2018. If you qualify, you’ll receive one payment. Here is who qualifies:

  • If you file jointly without children and earn less than $198,000
  • If you’re a single US resident and have an adjusted gross income less than $99,000
  • If you file as the head of a household and earn under $146,500

The maximum amount that one can receive is $1,200. Meaning, that not everyone who qualifies for a check will receive a full $1,200.

According to the IRS, Most eligible U.S. taxpayers will automatically receive their Economic Impact Payments including:

  • Individuals who filed a federal income tax for 2018 or 2019
  • Individuals who receive Social Security retirement, disability (SSDI), or survivor benefits
  • Individuals who receive Railroad Retirement benefits

Starting this week, April 13th, the first stimulus payments for COVID-19 will go out for those who have set up direct deposit with the IRS. According to the IRS website page for Economic Impact Payments “In the coming weeks, Treasury plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.” If you have not filed your taxes yet visit the IRS “Tools” page for help.

If you qualify and receive a stimulus check you can find the money deposited into the account of your choice after setting up direct deposit with the IRS or you will receive a check in the mail.

 

 

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