The COVID-19 pandemic changed the world, impacting economies everywhere. In the US, the government introduced several measures to provide financial help to people.
One of the major forms of aid was the stimulus checks. These were designed to support individuals and families who faced financial challenges and to help boost the economy.
What Were Stimulus Checks?
Stimulus checks are direct payments made by the US government to eligible taxpayers. They could be sent via direct deposit or as paper checks. During the pandemic, these payments were crucial for people who were struggling financially.
The First Stimulus Check
Introduction of the First Stimulus Check: In April 2020, the US government launched the first round of Economic Impact Payments under the CARES Act.
This check offered up to $1,200 to eligible individuals and $500 for each dependent child. It was aimed at people earning up to $75,000 per year.
Eligibility and Payment Details: People earning between $75,000 and $99,000 received a reduced amount. Most payments were made by direct deposit or paper check by mid-April, with some individuals receiving prepaid debit cards in late May or June.
The Second Stimulus Check
Details of the Second Stimulus Check: Approved in December 2020 under the Tax Relief Act, the second stimulus check provided $600 to each eligible adult and $600 per dependent child under 17. This round had slightly higher income limits compared to the first check.
Eligibility and Payment Details: Married couples filing jointly could receive up to $1,200 plus $600 for each dependent child. Payments started in late December 2020.
The Third Stimulus Check
Details of the Third Stimulus Check: In March 2021, the American Rescue Plan introduced the third stimulus check. It provided $1,400 per eligible person and $1,400 for each dependent, regardless of age.
This meant that families with multiple dependents could receive a larger amount.
Eligibility and Payment Details: Most payments were made through direct deposit, while others were sent as checks or prepaid debit cards.
Status of Stimulus Payments
By December 31, 2021, the IRS stopped sending out federal stimulus payments. However, 16 states began their own programs to provide additional financial help through checks, rebates, refunds, or credits to their residents.
We hope this guide helps you understand the different stimulus checks issued by the US government and how they supported people during the pandemic.
1. What were stimulus checks?
Stimulus checks were direct payments from the US government to help people financially during the COVID-19 pandemic.
2. How much money did the first stimulus check provide?
The first stimulus check provided up to $1,200 for individuals and $500 for each dependent child.
3. When did the second stimulus check get approved?
The second stimulus check was approved in December 2020 under the Tax Relief Act.
4. How much was the third stimulus check?
The third stimulus check offered $1,400 per eligible person and $1,400 for each dependent.
5. Are there still stimulus payments being sent out?
No, federal stimulus payments stopped in December 2021, but some states started their own financial help programs.
