How Much Money Was Given by the Government for Stimulus Checks

Garry S. —

How Much Money Was Given by the Government for Stimulus Checks

Many, if not all of us have heard about the government stimulus check. With the recent buzz around the concept itself, there has been a dramatic rise in the demand for stimulus checks. Therefore, this article will examine the true essence of the stimulus check and all the aspects that accompany it.

What is a Government Stimulus Check?

The concept of the stimulus check can be described as a certain payment the government issues to the particular taxpayer. This money, also known as stimulus check, is then intended to boost spending among the taxpayers, and hence increase consumption. This, in turn, will boost economic growth. In other words, a government stimulus check is money the government pays to its citizens or taxpayers.

The true goal of the stimulus checks is to ensure the taxpayers are doing well, even if the economy overall is experiencing a recession or crisis. This is when the government stimulus check will encourage consumption and spending, ensuring economic stability.

Stimulus Checkס
History knows a few examples of the introduction of the government stimulus check to the public. The first one was the government stimulus check issued due to the 2008 financial crisis. With the severe downfall of the US economy, the government started issuing stimulus checks, which has stopped the unemployment rates from rising further. With the issuance of the first, second, and third stimulus checks, there was a need for an Economic Stimulus Act, which was issued the same year by George Bush`s administration.

Another example happened recently with the COVID-19 outbreak. Coronavirus outbreak has noticeably affected the economy, causing another economic downturn of 2020. With the introduction of the government stimulus checks in the amount of 1200 USD for adults and 500 USD for children, the situation has visibly bettered.

How Much Money Was Given by the Government for Stimulus Checks

According to the most recent information, the number of the newly issued stimulus checks is around 2.3 million, which amounts to around 4.2 billion USD in payments to US citizens. After the American Rescue Pact has been issued in March, over 169 million stimulus checks have been issued all amounting to about 395USD billion.

First Stimulus Check

Those who are eager to receive the government stimulus check must file for it and wait. After the careful examination of your application, IRS would inform you whether you qualify for it or not. In case you do, you will receive one of the stimulus checks. Those, who didn’t receive any stimulus checks, but are positive they are entitled to it, can file for the Recovery Rebate Credit.

Stimulus Check
In other words, Recovery Rebate Credit is the tax credit, or tax return, which can be still received at a later stage. In order to qualify for the first stimulus check, your income must be less than 75000 USD per single person or less than 150 000 USD per couple. An exception is the application of the heads of households because they would be eligible for the first stimulus check if their income is lower than 112 500 USD. According to the data provided, the first stimulus check has been issued in the amount of 1200 USD per person, totaling 388 billion for all taxpayers.

Second Stimulus Check

After the first stimulus check, there is a possibility to file for the second one. The second stimulus check, in turn, is distributed by the means of direct deposit, mail checks, or an EIP card. It is worthy of note, that the distribution of the second stimulus check takes time. Many of the taxpayers risk not getting their second stimulus check on time.

However, what you can do is ensure whether your bank and address details are correct and up to date. The eligibility criteria for the second stimulus check are defined by the following criteria:

  1. Your earnings (income) are the same in the first stimulus check. With the only exception: there is no minimum income requirement.
  2. Your Social Security Number. For those, who file jointly as a couple, only the SSN of the one spouse is enough.
  3. Dependency
  4. You are whether a US citizen or a US resident

According to the information provided, the second stimulus check has resulted in 600 USD per person and totaled about 142 billion dollars.

Stimulus Checks
Third Stimulus Check

With the election of Joe Biden as President, the introduction of the third stimulus check has been implemented, with the publication of the American Rescue Plan. The third stimulus checks would be eligible for all the US residents who missed the first and second stimulus checks. The amount of the third stimulus check is 1400 USD per person and 2800 USD per couple. In families, each dependent member would receive 1400 USD at hand. Fact: the third stimulus check offers a wider eligibility range than the rest two.

Having examined the concept of the government stimulus checks and the eligibility for first, second, and third stimulus checks, we hope you will have good luck applying for one!