During the coronavirus outbreak last year, households were granted stimulus payments totaling thousands of dollars. So far, the government has sent three batches of stimulus checks
Financial Aid During Pandemic
Taxpayers receive a stimulus check from the US government. Those are meant to boost the economy by giving consumers more money to spend. This money is distributed to taxpayers in order to stimulate the economy by raising consumer spending and income at retailers and businesses.
Those payments were made when the vaccine debate was heating up, and inflation began to climb. So much payment-related information got lost in the shuffle, and the consequences are still felt today. The total amount issued was 3.7 million payments totaling $5.5 billion to more than one-third of the nine million, or more, U.S. residents living abroad throughout the three stimulus rounds. However, because it includes U.S. territories like Puerto Rico, the word “overseas” might be deceptive. Yahoo Finance also reported the government sent several checks to overseas military personnel and American citizens living abroad.
Three Waves of Stimulus Check
According to en.as.com, on April 11 and 12, the first stimulus payments were deposited into people’s bank accounts. The CAREs Act includes a provision for a wave of stimulus payments, with eligible tax-paying adults receiving up to $1,200 and dependents under the age of 16 receiving $500 apiece (could claim a maximum of three dependents ). In addition, the government sent payments to everyone earning less than the income restrictions, which were established at $75,000 AGI ($150,000 for married couples filing jointly), with the stimulus check value gradually decreasing to a maximum of $99,000.
The Coronavirus Response and Relief Supplemental Appropriations Act of 2021 contain the second wave of funding, a $900 billion package was signed by Trump on December 27, 2020. It offered a one-time payment of up to $600, but this time, households may additionally claim an additional $600 for children under 16. Those who earned less than $75,000 in the 2019 tax year received the full stimulus payment, while those with a higher yearly income got a steadily smaller amount, up to a maximum phase-out limit of $87,000. Between December 29, 2020, and January 15, 2021, the first payments were paid via direct transfer and paper checks, with some later payments made via EIP 2 Cards.
President-elect Joe Biden was sworn in less than a week after the second batch of stimulus funds were announced, and he immediately announced his American Rescue Plan. It proposed the third phase of payments to Americans, including those who may have missed the first two installments. On March 11th, Biden signed his $1.9 trillion American Rescue Plan. Individual taxpayers might earn up to $1,400, while married couples filing jointly could receive up to $2,800 in the third payment. Additionally, families with dependents were eligible for an additional $1,400 per dependent, irrespective of age – there was no limitation on the number of dependents that could register this time.
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If you owe money from the stimulus program in 2021, you should file your taxes.