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Want a better understanding of what a Stimulus Check is and how it helps the economy.

Are you getting another stimulus check?

On Thursday, March 11th, 2021, President Joe Biden signed the newest Covid-19 relief package into law. Part of the $1.9 trillion bill, includes a stimulus check for $1,400, among a variety of other things. This legislation marks the third, since the Coronavirus Pandemic began in March 2020. However, unlike the previous stimulus checks, these have a more targeted destination. 

 

How do you know if you will be getting one? First, are you a taxpayer? If yes, the amount you make in a year factors into if you will be receiving one. Are you a: 

  • Single making up to $75,000 a year
  • Married couple, filing jointly making up to $150,000
  • Head of household making up to $112,500

 

If you said ‘YES’ to any of these, you will see $1,400 directly deposited into your account soon. Also, if you have dependents in your household you will receive $1,400 per dependent, including adult ones. So a family of four will receive $5,600 in their account once funds are released. Word around the internet is by the end of March. When the 2nd stimulus was signed into law, the IRS released the funds about a week after. So keep your eyes peeled.

 

If you said ‘NO’ unfortunately this time you will not be included in the stimulus check distribution.

Now what is a stimulus check?

The U.S. government sends its qualifying taxpayers a stimulus check. In hopes it will stimulate the economy by providing funds to consumers. When people spend money, it boosts sales and drives up revenue for retailers and manufacturers. This in turn improves the economy.

 

So the government hopes when one receives this unplanned money, they will be spend it and hopefully spur the economy.

How do you get yours?

The IRS, Internal Revenue Service, either will directly deposit or mail your check. This is determined how you filed your taxes. If you filed electronically, you will receive the money via direct deposit. Since we have had a couple of stimulus checks disbursed already. This time wouldn’t be any different. It will arrive the same manner the previous stimulus checks did.

Will the Stimulus Check count towards your taxable income?

No, so make sure you log the amount you received. Whether you are preparing your taxes by yourself or having a CPA do it. You will need to reference this amount come next year’s tax filing. 

Hopefully you have a better understanding of what a Stimulus Check is and how it helps the economy.

 

Cheers,

Erika

 

Need assistance managing your business financials? Contact Midori Bookkeeping for your FREE consultation.

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