Sent by the US government to its taxpayers, stimulus checks help to vitalize the economy and provide the consumer to spend money on products. This revitalizes consumption and brings more revenue to dealers and businesses. This, in turn, boosts the economy.
In case of a crisis, these checks intend to support the economy. Due to the pandemic, the US government designed the CARES Act in 2020. It is to revive the economy after the covid-19 economic regression.
What is a stimulus check?
Covid-19 is not the first time the US government is mailing the stimulus checks for the intended purpose. The amount that is returned to the taxpayers depends upon their tax filings. So, those who are paying the taxes jointly receive twice more than those filing single.
According to the National Bureau of Economic Research (NBER), they discovered that by delivering these checks, the consuming habits of taxpayers changed. But implementing tax credits of the equal amount in the stimulus checks did not provide the desired activity.
To ease the suffering caused by the economic hardships, the federal agencies sent out stimulus checks to people. In March 2020, this decision got approved. The CARES Act details the tax rebates offered by the government. Whereas another study in 2008 found that stimulus checks do reduce unemployment and increase GDP.
But there is an ongoing debate that stimulus checks may not be as effective as they appear to be. The reason being these checks get mailed is under the impression that they will get utilized.
The taxpayers will spend them to buy products. They encourage the consumer to change their buying habits & contribute to the economy.
Often, the taxpayers prefer to keep this money saved for a rainy day or others do not use all of it. So, it does not increase employment or add to the economy. Additionally, the government will amass a huge amount of debt in issuing these checks.
Recently, in March 2021, Joe Biden passed a $2.2 trillion relief check to boost the economy. The government is taking on a huge risk. With this comes the possibility of extreme debt levels. As well as an unstable economy that can cripple the GDP and other functions of the nation.
When will the stimulus checks get delivered?
- With Biden’s approval to mail the third stimulus check, you can expect to receive the direct deposit of $1,400 in our bank accounts.
- People who wish to track their checks can see their status from the Internal Revenue Service (IRS) tracker tool. This will show you the total amount of stimulus that you will be receiving. If there is any problem that will reflect in the tracker tool as well.
- There are different statuses on the tracker tool. This will help you understand how your stimulus check is being processed.
- It was estimated that the delivery of stimulus checks may go as far as December 31st, 2021. People are currently in the first wave. IRS has been operating swiftly to deliver these checks and in the next 10 days, about 100 million payments will get delivered.
- One drawback of the tracker tool is that you cannot see the status of the first two stimulus payments.
- You can expect the payment through the mail, debit card, or direct deposit in the bank. Additionally, constantly contacting the IRS will not fuel the delivery of your check, thus be patient about it. If you face issues, contact their help desk.
How can I check the status of my stimulus check?
- To find out when your stimulus check is coming, visit the IRS’ website
- On 13th March 2021, the ‘Get My Payment’ tool got launched. This is to help you track your check and see what you will be receiving.
- The tracker tool gets updated once a day. Often, it gets updated at night. So, you do not need to check it constantly.
- ‘Get My Payment’ tool will have the following information:
– Date of payment: When you can expect the payment to be made.
– Means of Payment: Either it will be a direct deposit, or you will receive a mail. In the mail, it can either be a check or an EIP/ Debit card.
– If the screen displays: “Need More Information”, this implies that the payment made was not delivered. It likely got returned to the IRS as the post office could not deliver it.
– Those who miss the payment can use the tracker tool. All they have to do is provide bank details to the IRS and can expect a direct deposit.
– If the status of the payment is not displayed that means that the request for the check has not been processed. Or it could mean that you are not eligible for payments.
Am I eligible for the third stimulus check?
- According to the IRS, the third stimulus check is not restricted to those under 17 with members dependent on them.
- Older relatives, college students, disabled adults, parents, and grandparents all qualify for a payment.
- The Rescue Plan is to provide a $1,400 check for every adult, child, and other dependent family members. (These include the elderly as well as college students).
- For a single filer, if your income is above $75,000, the amount paid will decline. And if it crosses $80,000, you will not receive any payment.
- In the case of married couples, if their income is more than $150,000, the payment amount will decline. And they will not receive any payment if it is more than $160,000.
- An eligible family of four will be receiving a check of $5,600.
- Also, apart from the $1,400 stimulus payments to the Americans, there is more support that will be provided. A $600 payment is sent as a part of the December 2020 relief plan. This brings the total to about $2,000.
You can use an online calculator to check the amount you will receive from the stimulus check. If you want to use it, click here.
A stimulus check is an integral part of boosting the economy. Even though many people would prefer to save this money, it is advised that they use it for its intended purpose. This boosts the economy and is bound to help the citizens in the long run. If they don’t, the country can run into debt.
For years I have studied the irs regulations regarding forms and taxes. All the information in this blog is sourced from the Internal Revenue Service (Irs) of the United States government .
Salesforce Certified SALES & SERVICE Cloud Consultant in february 2020, Salesforce Certified Administrator (ADM-201) and Master degree in “Business Analytics & Big Data Strategy” with more than 13 years of experience in IT consulting.