Fiscal topics can be tough to understand. However, it’s important to be aware of the taxes and other money-related stuff to survive in this material world. Therefore, if you are completely aware of the fact that there’s a thing called a Stimulus check, then don’t worry, we will provide you with some important details. Those who know about it can check the article to know about the third cycle of the check.
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Stimulus Check: An Overview
Stimulus Check is a check that a taxpayer receives from the U.S Government. Moreover, the Govt gives a certain portion of the money to the citizen’s so that they can spend it. This way, they stimulate the economy. All the taxpayers who get this money use them for consumption. It’s all about stimulating the stagnant economy.
This check can be a part of a broader federal stimulus package that the government designed to support the economy of the states. For example, as it was with the case of the CARES act in 2020 and the American Rescue plan of 2021.
It’s also important to note that from 2020 March to 2021 March, in this one year, the U.S Government sent out three rounds of the check to provide a pretty much necessary boost to the economy. As we know that the covid pandemic has seriously dealt a huge blow to the states. Therefore, it was necessary to take some immediate measures to boost the economy, in times of recession.
Understanding A Bit More on Stimulus Check
In the past, the Stimulus check has been mailed to the TAxpayers of the U.S on several occasions. In fact, one of the main questions one might ask is the fact that how do they decide on the check? Well, these checks vary in amount according to the filing status of the taxpayer. For example, if there are joint taxpayers, then they’d receive twice more than the original price.
The National Beau of Economic Research sources found that the delivery means of the fiscal stimulus makes a huge difference to the overall spending matters of all the consumers. In fact, through implementing this fiscal stimulus, a person’s overall spending capacity increases, and resultantly the cash flow in the economy also becomes a lot smoother. However, those people who got the money as tax credit equivalent didn’t contribute much in terms of spending.
Also read: 7 Impacts of COVID-19 Pandemic That Have Affected Mental Health
A Few Examples of The Check
So, it’s better to just explain through the real incidents. There were a few times when taxpayers found money in their accounts. So, check out these incidents when the government had to give the taxpayers extra money to move the economy.
1. Financial Crisis of 2008
One of the finest examples would be to narrate the financial crisis that the US faced back in 2008. At that time, American went through a severe recession. Therefore, Barrack Obama’s administration estimated that it would be better to send checks to the taxpayers in order to evade mass unemployment rates going beyond 8%.
In fact, these payments were part of the economic stimulus act of 2008, enacted by President George W. Bush. It’s worth mentioning that the government sent the checks to those people who had at least around $3000 as the qualifying income form.
2. Covid Pandemic Relief
So, if you want to know about the first stimulus check, then let us tell you that it came out in March 2020. It was due to the fact that the covid pandemic had run havoc in the country. Therefore, a lot of people lost their jobs and unemployment rates kept getting higher and higher.
Thereafter, in July and through the summer, there were some proposals for the second stimulus check. So, the second round of aid of $900 billion was signed by Trump on 27th Dec 2020. The check was a one-off of $600 and $1200 to Joint accounts. Moreover, there was an additional $600 for the child dependents who are 16 or under.
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3. Third Roll Out Due to Pandemic
So, the covid situation has really made life difficult. That’s why, on 11th March, American president Joe Biden has signed the $1.9 trillion American Rescue Plan act of 2021. This third stimulus package, after stimulus check 2 includes about $1400 for eligible individuals and $2800 for those who have a joint account.
What If You Don’t Get the Money
Well, are you one of those poor souls who haven’t received their money and are wondering ‘where is my stimulus check?’ then let us help you. If you are an eligible candidate for the money and haven’t received it yet, then you can do a few things. You can use the IRS Get My Payment tool in order to track the money. If that doesn’t help, then you need to request a payment trace. Moreover, you can also file for a recovery rebate credit as well.
FAQ On Stimulus Check
Here are some questions that people generally ask regarding the check.
Question: Who can’t get a stimulus check?
Ans: Those who don’t have any valid identification number and are non-residents.
Question: Is this check a taxable income?
Ans: No, it’s a refundable tax credit.
Question: Is this check a loan?
Ans: This check isn’t a loan.
Question: How to check the check?
Ans: Recently the IRS has released an application ‘Get My Payment’, where you can check the status of the payment.
Final thoughts
So, that’s all about stimulus checks. It’s true that this is a very good initiative by the US government. However, this is not the final solution to boost the country’s economy. Though it can be quite handy to tickle the economy if it remains stagnant for a while.
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