Everyone in US is looking into their bank accounts to see the stimulus amount given by IRS to tackle economy impact due to Corona Virus. A rumor is spreading that IRS is giving away free money to everyone in US in their bank accounts. Let’s look at some details to clear who is eligible and how they will receive the payment.
What is a stimulus check?
A stimulus check is an amount sent by US government to its citizens or tax payers. The purpose is to stimulate the economy by giving consumers of the market some money to spend. When people spend this money, it will boost the market helping to bring back the economy. In a way instead of giving direct money to people who have lost business, government is giving money to people who can spend it on these businesses, benefitting everyone and the economy.
How much is the stimulus amount?
The IRS rolled out payments to over 80 million Americans. The payment goes upto $1,200 for an individual and up to $2,400 for couples without dependent children. This can be either a direct deposit to your account or a cash check coming to your home. Those who have filed tax returns in 2018 or 2019 and have opted for direct deposit are the ones who have got the amount today.
Who is eligible?
Direct payments are distributed according to the adjusted gross income for an individual or couple’s 2018 and 2019 tax returns. The split is as below.
How is the payment made?
Direct payments have gone out to those who had filed tax returns in 2018 or 2019 and had selected direct account payment. If not, it will come out in the coming weeks, if you fall in any of the above bucket.
The online tool got an overwhelming response today and you are likely to get a popup saying to wait for while or try again later. IRS has confirmed to try after sometime and this is just a temporary issue due to heavy traffic on the site.