What is a Stimulus Check?

A Stimulus Check is a government payment sent via paper check or direct deposit to individual taxpayers during times of economic distress. These payments are intended to encourage consumer spending, which helps drive revenue at retailers and manufacturers. The government has distributed stimulus checks on several occasions throughout history, including the 2008 Global Financial Crisis. Research has shown that stimulus checks can have positive effects on the economy, such as decreasing unemployment and increasing GDP.Check this out

A Stimulus Check can also be referred to as an Economic Impact Payment, Coronavirus Aid, Relief and Security (CARES) Payment, or COVID-19 Support Payment. The IRS has distributed two rounds of these payments to help Americans during the coronavirus pandemic.

Stimulus Check Updates: Staying Informed on Government Economic Assistance

These payments are an advance of a refundable tax credit that you would normally use to reduce the amount of your 2020 taxes when filing in 2021. As a result, you don’t need to apply for them or submit additional information in order to receive the check.

The first and second stimulus checks were for $1,200 per adult in a household. The third round has a lower maximum income limit. Adults with adjusted gross incomes of up to $75,000 or heads of households with up to $112,500 are eligible for the full payment. Individuals who made more than that saw their payments decrease at a rate of $5 for every $100 above the threshold.

In addition to the income requirements, a Stimulus Check recipient must have a valid Social Security number and be a US citizen or permanent resident. The CARES Act requires recipients to have an active email address, and the IRS will use this email to communicate with them in the future.

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