What is a Stimulus Check? Check Its Meaning, Eligibility, and How to Check Status?

Stimulus checks are a very crucial financial relief tool, especially during times of economic crisis, like the 2008 recession and the COVID-19 pandemic. But let’s know what exactly these Stimulus Checks are, who qualifies for them, and how recipients can check their status? Here’s everything you need to know.

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What is a Stimulus Check?

A stimulus check is a direct payment made by the U.S. government for eligible taxpayers to stimulate economic activity during a time of financial crisis. These payments are issued by either the paper check or the direct deposit method. Its primary goal is to stimulate consumer spending, boost confidence, and support struggling households. These are a part of a broader stimulus package, such as the CARES Act (2020) and the American Rescue Plan (2021).

Key Features of Stimulus Checks:

• Aim: To increase spending power and support the economy of the eligible taxpayers.

• Payment Modes: Mailed paper checks, direct deposit, or tax credit application.

• Time: Issued during emergencies or economic recessions.

• Fixed Amount: No, it doesn’t have any fixed amount. It varies as per the taxpayer’s filing status, income, and number of dependents.

Eligibility Criteria for Stimulus Checks

Not everyone qualifies for a stimulus check. The U.S. government outlines eligibility criteria for each round of payments. Here are some general requirements:

1. The individual must be a citizen or legal resident of the United States.

2. One should not be claimed as a dependent on another person's tax return.

3. The individual must have filed a federal tax return or receive government benefits like Social Security.

How to Check the Status of Your Stimulus Check?

To check the status of your stimulus check, the IRS has launched the “Get My Payment” portal, making it convenient for individuals to check. Here are some simple steps to check: 

1. Visit the IRS’s official Get My Payment tool.

2. Enter your Social Security number, date of birth, and address.

3. The portal will display your payment status, method of payment, and whether it's been scheduled or sent.

4. And if by any chance, you missed a payment, you might need to claim a Recovery Rebate Credit when filing your tax return.

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Conclusion

Stimulus checks are made to transform confidence and cash into the economy when it's most needed. Although these are not a long-term solution, they serve as an essential financial lifeline for millions during some hard times.