Everything You Need to Know About the Stimulus Check
The COVID-19 pandemic has impacted people worldwide, causing unprecedented economic challenges. One way governments have supported their citizens is through economic stimulus packages. In the United States, the recently passed American Rescue Plan Act (ARPA) includes provisions for stimulus checks to eligible Americans. In this article, we will discuss everything you need to know about the stimulus check.
What is a stimulus check?
A stimulus check is a one-time payment to eligible citizens by the government to help stimulate the economy. The purpose of the check is to provide financial support to those who have been impacted by economic hardships during the pandemic.
Who is eligible for a stimulus check?
Under the ARPA, any US citizen or resident alien who has a valid Social Security number and has an adjusted gross income (AGI) of less than $75,000 for individuals or $150,000 for married couples filing a joint tax return in the previous year will be eligible to receive a full stimulus check of $1,400. Those with higher incomes will receive a reduced amount, with individuals earning more than $80,000 and couples earning more than $160,000 becoming ineligible.
When will the stimulus checks be distributed?
The ARPA requires the IRS to start distributing the stimulus checks from March 2021. The date may vary depending on individual circumstances, such as whether the individual has filed a tax return for 2020 or not.
How will the stimulus checks be distributed?
For those who have filed their 2020 tax return, the stimulus check will be directly deposited in their bank account. For those who have not filed their 2020 tax return, the IRS will use the information from their 2019 tax return to make the payment. For those who do not typically file a tax return but are eligible for the stimulus check, they can provide their information through the IRS website to receive their payment.
What can the stimulus checks be used for?
The stimulus checks can be used for any expense, including rent, mortgage payments, food, and bills. There are no restrictions on how the payment can be spent.
Conclusion: Key takeaways
The stimulus check is a one-time payment provided by the US government to eligible citizens and residents. The eligibility criteria are based on adjusted gross income from the previous tax year, and payments will be directly deposited in bank accounts or distributed through other means. With the distribution of the stimulus checks starting from March 2021, eligible individuals can benefit from financial support during these challenging times.
