The fourth installment of stimulus checks is just around the corner and nine out of twenty states have confirmed that they will be releasing it through the Economic Impact Payments program. The process of distribution has already begun to the eligible citizens. The Internal Revenue Service (IRS) in a release has informed that four groups of people are eligible to receive aid.
As per the information, the following groups of people are eligible to receive aid:
- A person who’s Adjusted Gross Income (AGI) does not exceed $75,000.
- Heads of household whose AGI does not exceed $112,500.
- Married couples filing jointly and AGI does not exceed $150,000.
- Parents or guardians who claim children as dependents are eligible for the child tax credit.
Please note that persons or families whose AGI exceeds the stipulated amounts can still get partial payments and the maximum amount will face a cut of $5 for every $100 that the person’s AGI exceeds the maximum AGI.
Stimulus Checks For Particular Groups
There are some states which give stimulus to a particular group of people such as workers, teachers, and certain taxpayers.
Arizona has in place the ‘Return to Work’ Program and it incentivizes those who enter a new job provided the person retains the job for at least eight weeks to receive payment.
New York State has in place the ‘Excluded Workers Fund’ which is an unemployment payment made to workers who have lost their jobs during the COVID-19 pandemic and do not receive any other form of stimulus program.
Maryland has in place stimulus checks for persons who have filed for their 2019 Earned Income Tax Credit. Florida, Georgia, Michigan, Tennessee, and Texas will shortly release the fourth stimulus check to teachers.
The stimulus checks amount can vary from $250 to $3,200, depending on the state and the applicant’s situation. The incentives which are given to a particular group of people range from $500 to $2,000, also depending on the state and the individual’s situation.
What Is a Stimulus Check?
A stimulus check is a process in which the U.S. Government pays the taxpayer funds which are in the form of a paper check or are deposited directly into the taxpayer’s account. Stimulus checks are usually doled out during a recession to stimulate growth and encourage spending. The process is done to stimulate the economy and this was exactly the case when stimulus payouts were handed out as a part of the CARES Act in 2020 and the American Rescue Plan in 2021.
However, the stimulus dole-outs have some eligibility criteria which vary from state to state. The stimulus amount could also lead to a reduction in tax credits to lower their tax bills. Stimulus checks were distributed during the Great Recession of 2008. Three rounds of stimulus aid were distributed to provide relief for economic hardships caused by COVID-19 between March 2020 and March 2021.