A stimulus check is a check being sent to a taxpayer and issued by the US government to assist the economy. As I said, the work of the stimulus check is to stimulate the economy. Just by supplying some spending money to consumers.
When a taxpayer or taxpayers use this money, it will expand consumption. And as well as push revenues at manufacturers and retailers and therefore, stimulate the economy.
Consumer spending is a very important component of a healthy economy. However, during the time of economic mistrust, it usually goes down. That is the more reason a government should supply consumers with stimulus checks. In order to keep the outlook of the consumer very strong and healthy and stimulate spending.
Note that a stimulus check will either be mailed out to taxpayers on several occasions or given as an equal tax credit. Those still having uncleared taxes will normally see the checks included to their outstanding money owed automatically. So, I would say that stimulus checks are a type of fiscal policy. And what exactly is fiscal policy?
Well, Fiscal policy is the government spendings. As well as taxation policies that are being used to leverage the entire economic condition of a particular country. Contrariwise, to monetary policy, fiscal policy is not connected or in any way related to the central bank of a country.
Rather, it is a policy that was authorized by the government. Below are ways in which the government makes use of the fiscal policy. They include:
- Increasing or decreasing tax rates.
- Decreasing or increasing government spending on projects.
Stimulus Check 2020
To act against the coronavirus pandemic that resulted in the breakdown of the economy. The Coronavirus Aid, Relief, and Economy Security Act (CARES) has added an enormous economic stimulus plan. That is ravaging the US economy with money and giving out some relief for some Americans who are financially unstable.
Part of this plan is to send direct payments to completely everyone right from the coffers of the government. However, there are so many questions concerning these “stimulus checks” that have not been answered. Questions like ‘How much will we all get?, And when will we get it?”
Other related questions include:
How many stimulus checks will I get?
You will be getting only one payment. Initial proposals called for multiple checks. A plan placed forth by a group of Democratic Senators even needed quarterly payments to American until the disaster ends. Although, the law being signed by President Donald Trump authorizes only a single payment.
How much money will I get?
Everybody wishes to know how much money they will be paid. You might have gotten an idea or heard that the stimulus checks will be for $1,200, however, it is not that easy. Your check might be very higher or lower.
Stimulus Check Calculator
The stimulus check calculator assists you in estimating how much money you can receive from the IRS if a second check comes to be. Do you know that you can easily estimate/calculate how much you will be getting?
Here is how the COVID-19 stimulus payment is calculated:
- Single filers with an AGI of $75,000 or lesser will get $1,200.
- Married couples filing jointly with an AGI of $150,000 or lesser than that will get $2,400
- Taxpayers with incomes more than the thresholds will have a reduced payment on a sliding scale.
- Each qualifying child below 17 years will include an extra $500 to the check.
- Taxpayers filing head of households with an AGI of $112,500 or lesser than that will get $1,200.
- Stimulus payments phase out for individual filers having an AGI of $99,000 or more.
-For joint filers with an AGI of more than 198,000.
-While for heads of household with an AGI higher than $136,500.
Who are those eligible for the stimulus check?
The US government is making use of the filing status of each person as well as the AGI (adjusted gross income) as a basis to check the eligibility as well as their allotment. People eligible are those living in the US with an adjusted gross income beneath the threshold for their filing status can receive or get a payment.
Also, Social Security recipients are eligible so far as their income does not pass the threshold. Finally, unemployed individuals are eligible also as far as their adjusted gross income is not more than the required limit.
Unfortunately, those not residing in the US are not allowed to receive or get stimulus money. Dependents are not also eligible to receive stimulus money. Although, the person who claims the dependent can get an extra payment added to their normal payment.
For the stimulus check requirement, you can check this