COVID-19 crisis has brought the global economy on its knees. Every country is struggling to maintain its economy and employment. The U.S. administration has decided to go a step ahead to ensure financial help to the American citizens. A second stimulus package is in the plans by the Trump administration.
On March 27, the Trump administration announced a massive $2.2 Trillion relief package to uplift the United States’ struggling economy. The relief package included a stimulus check scheme for individuals and families from the country’s lower economic background.
Stimulus Package: What’s a Stimulus Check?
To those who don’t know what a stimulus check is, it’s a check sent by the U.S. government to the citizens, who pay taxes. This scheme is created to stimulate economic activities in the country.
The checks are conveyed to the taxpayers by the government and gives them some extra money to spend on their demands. When the taxpayers use this money to buy things, it drives the profits to the retailers, businesses, and manufacturers.
A cycle starts with an economic boost by this spending. Stimulus packages help to increase consumption, and you know what happens next.
Interestingly, the stimulus checks were sent last time during the 2008 economic crisis. The government’s stimulus checks are sent to taxpayers either via physical mail.
Apart from that, it can be sent electronically in the bank accounts, or tax credit of equivalent amounts can be applied to the tax returns of taxpayers.
In 2020, the stimulus relief is back in the news—this time to rescue the American economy from the slowdown caused by the COVID pandemic.
Stimulus Package: Interesting Facts
On March 27, Trump signed a law passed by the House and Senate, called CARES Act. It includes a stimulus package of a whopping 2.2 trillion dollars. That relief package includes stimulus checks worth $1200 and $500.
The $1200 check is for the taxpayer adults and $500 for kids. The checks will be sent to those individuals who earn less than $75,000 and couples who make less than $150,000.
Individuals’ income will judge the stimulus eligibility. Your tax returns of 2019 or 2018 will be assessed before sending the checks. The individuals who earn the less than stated in the criteria will get full amounts. In contrast, others will receive reduced amounts depending on the filings and income.
The first stimulus checks under the CARES Act were sent after three weeks of the announcement on April 15. The amount of recipients receiving the checks is around 159 million as of the moment.
The amount of stimulus checks is worth $267 billion. However, there are 30 to 35 million checks that are still pending.
What to do If You Haven’t Received a Check?
The government is planning to do a second stimulus package before the August deadline. However, for that House and Senate to pass a law, only then will the president sign that package.
If you haven’t received a check in your accounts, make sure to quickly assess your income and tax returns. If you have filed tax returns in 2019 or 2018, you can visit the IRS site and use this non-filers tool. Make sure to read the guidelines stated by the IRS before using the device.
If you aren’t satisfied with that, you can directly call IRS hotline number 800-829-1040 for assistance.
The second stimulus package will be announced, most likely. It will be a helpful move by the administration to boost the economic mammoth that the American economy is. If you have received the check, tell us what you are planning to do with it.
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