Key Points
- Stimulus checks are the amount delivered to the taxpayers by the government to strengthen their financial condition and fulfill their necessary expenses.
- The stimulus checks are sent to the taxpayers either by mail or directly deposited into their bank accounts.
- There are some eligibility criteria to get stimulus checks, set by the government.
- The individual making less than $75000 or heads of the house making less than &112,500 are eligible individuals for the entire payment of $600.
- You can check your stimulus checks status on the website approved by the IRS.
- The United States government has sent many American residents three sessions ld stimulus payment to assist them during this financial crisis due to COVID-19 between March 2020 and 2021.
The World Health Organization announced on 11th March 2020, that COVID-19 is a global pandemic. The whole country was put into a lockdown to restrict the spread of this virus. Due to the lockdown, every sector was closed and many people were left unemployed. To this, the federal government responded by passing relief bills, including an Economic Impact Payment also known as Stimulus Checks.
With the increase in the pandemic, the demand among American families for more stimulus checks grew after the first stimulus checks. The U.S. government reacted to this and provided a second stimulus check in December 2020.
Still, there were more who fell short of the second stimulus check which led to many people campaigning for additional stimulus checks. Which resulted in the authorization of third stimulus checks. On 11th March 2021, a law was signed by The American Rescue Plan Act.
This article includes everything you want to know about stimulus checks like, who is eligible for these direct payments, how much funds are available in these direct payments, and how to check the current status of your payment.
What Does Stimulus Check Mean?
Stimulus checks are the direct payments made by the United States government to American residents. These payments are made through emails or directly deposited into the bank accounts of the residents. These payments are intended to facilitate the residents with some financial support so that they can bear their essential expenses in this deadly pandemic situation.
Stimulus checks were a part of The CARES Act of 2020 and The American Rescue Plan Act in 2021, which acted as a huge federal support to the economy. These federal funds were a huge support to the residents and the government.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) approved the first stimulus check that provided about $1,200 for eligible adults and about $500 for eligible dependent children. After that, an additional stimulus check was authorized by the government in December 2020, which provided about $600 for eligible adults and dependent children.
On 11th March 2021, The American Rescue Plan Act approved a third stimulus check due to the necessity that providing about $1,400 per adult and dependent
Who Is Eligible To Get A Stimulus Check?
The resident individuals of The U.S. with Social Security numbers are eligible to get stimulus checks. Though, the eligibility criteria depend on the checks.
Generally, the eligibility is limited to U.S. citizens and residents who fulfill the required income levels and who are not claimed as a dependent on another person’s tax return. Your 2019 adjusted gross income will determine your income (AGI). Typically, those making less than $75,000 or household heads making less than $112,500 are eligible for the entire $600 stimulus payment. Mainly, surviving spouses or married couples filing jointly who make less than $150,000 are eligible for a $1,200 settlement.
If your income is too high, you can still be eligible for a reduced stimulus payment, but the $600 payment stops entirely at $87,000 for single filers and $174,000 for married couples filing jointly in AGI.
An additional amount of $600 per child will be provided to the family with qualifying children. Though people who are 17 can also claim as children, it is not applicable for those above 17.
How To Check the Current Status Of Stimulus Check?
The IRS has made it easy for you to check your stimulus check status by creating a website. The Get My Payment tool is not able to show the updated data about the first or the second stimulus check. Still, you can check the status of your third stimulus check.
- If the payment is processed, the IRS will show the data including the date of issue, and the venue whether it has been sent by mail or directly deposited to the account.
- If the status shows “Payment Not Available” this specifies that the IRS has not yet made your payment or you are not eligible for that.
- If it is asking for some more information, then the stimulus is returned to the IRS, you need to give your bank information to get money.
- If you haven’t received your first or second check, then you have to file a tax return for the year 2020 to get the money.
When will there be another stimulus check?
By using a procedure known as “budget reconciliation,” Democrats were able to pass the third stimulus check with a simple majority in the Senate. Republicans were not in support of the bill.
Reconciliation can only be used a certain amount of times. Republicans have made it apparent they are not interested in granting further COVID assistance, while Democrats are currently concentrating on other issues. A fourth stimulus check won’t likely be approved as a result. This is particularly true as authorities relax lockdown policies and immunization rates rise.
The Bottom Line
During any crisis, many people tend to lose their confidence and their financial power. During the COVID-19 pandemic, people were not about to spend their money on necessities due to unemployment. To help the residents the government responded by delivering three sessions of stimulus checks. This has encouraged many people to get through this financial crisis.
