The COVID-19 pandemic has been a tough time for many, especially for those who have suffered financial setbacks. One of the ways the government has provided relief is by issuing stimulus checks. The latest of these payments was distributed in March 2021 for up to $1,400 per person. But what do you need to know about these checks? In this article, we’ll break down everything you need to know.
Eligibility: Not everyone is eligible for stimulus checks. To qualify for the latest round, an individual must have an Adjusted Gross Income (AGI) of up to $75,000, while couples filing jointly must have an AGI of up to $150,000. There are also additional payments for dependents, including college students and elderly relatives.
Taxability: The stimulus checks are not taxable. The money is not considered income, so it will not increase your tax liability.
Delivery: The IRS typically delivers payments through direct deposit, and those who have previously provided their bank account information will receive payments this way. For those who haven’t, the IRS will send a physical check or a debit card to the address on file. It’s important to note that scammers may try to use this situation to steal personal information, so do not provide sensitive information to anyone who contacts you claiming to help with your stimulus payment.
Stimulus Check Impact on Other Benefits: The direct payments won’t affect your eligibility for other government benefits like SSI, Medicaid, or SNAP. However, if you received unemployment benefits in 2020, you have to report your stimulus checks as income when you file your taxes.
Next Steps: If you are eligible for a stimulus check and haven’t received one yet, the IRS has a tool on their website that can help you track the status of your payment. If you believe you are eligible, but haven’t received a payment, you may need to claim your check on your tax return next year.
In summary, stimulus checks are intended to provide financial relief to those most affected by the pandemic. Eligibility, taxability, how payments are delivered, their effect on other benefits, and how to track your payments are crucial points to note. The government has provided aid, but it’s still essential to manage your finances wisely during tough times.
