Stimulus checks are a traditional and often-used mechanism for infusing the economy with relief in times of crisis and upheaval. The IRS is directed from time to time by the presiding administration to send out stimulus funding in a direct payout to consumers and taxpayers as a means of combatting some type of trouble in the marketplace.
Today, many taxpayers are familiar with the COVID-19 relief funding that has been sent out in three separate waves to help people manage their finances during these tough times. A stimulus check is a great asset for taxpayers who are struggling with rising costs of living, a shrinking consumer market, evaporating jobs, and more as a result of ongoing financial ripples. If you’re still waiting on stimulus relief or you want to find out more about how stimulus funding works more broadly (and learn how you can take advantage of future funding from the federal government) then this article is the perfect place for you to begin. Continue reading to learn more about eligibility and the use of stimulus funding throughout the years.
COVID-19 relief began with widespread payments to Americans across the economic spectrum.
The use of stimulus funding wasn’t novel when the administration rolled out a plan to infuse the economy and bank accounts of everyday Americans with additional cash assets. The first round of funding follows a tradition of “bailout” capital, as it’s sometimes been classified. Stimulus funding is designed to help bridge the gap that spans hard times for the country and its people.
The coronavirus pandemic was certainly one of these times. To date, the pandemic has claimed the lives of some 6 million people worldwide. In the United States, almost a million people have died from the virus, and both the economy and collective soul of the nation are still in trauma over these incalculable losses that reach far beyond the statistics that are splashed across the internet and television screens on a daily basis.
The first payouts were made out to every taxpayer in the United States that reported an adjusted gross income of less than $75,000 on their 2019 tax return. Married couples filing jointly received $2,400 instead of the single filer payout of $1,200. Additionally, families received an added $500 for each child under the age of 17. Eligibility was straightforward, and these metrics were carried on in the second stimulus check made out for $600 per single taxpayer, and the third that extended a final $1,400.
Stimulus payments are designed to help cover the costs of routine life.
These checks were paid to taxpayers in the hopes of helping everyday Americans to continue on in their daily life with as little disruption as possible, beyond the obvious change of circumstances that the pandemic brought to our doorsteps. Many were fortunate enough to leverage some of these funds as a means of augmenting their investment accounts. Investing is a great savings option for anyone in the modern world, and the infusion of additional cash came as a godsend for some in this regard.
Others utilized the funding to get ahead on bills like rent or rising electricity expenses. Putting aside some of this cash to help develop a more robust emergency fund was also a common practice with each new round of additional capital sent out by the federal government.
No matter how you used the check that you received. Understanding the landscape of options is a crucial consideration going forward. While no one wants to see another need for stimulus payouts in the future, there are bound to be future uses of this economic mechanism, and eligibility will likely follow the same pattern in the next rollout of emergency financial support.