From ongoing social service benefits to occasional stimulus checks, the government frequently provides financial assistance during periods of hardship. You can apply for federal payment programs through the Social Security Administration, such as disability and retirement benefits. On a local level, your state may have weekly payments if you lose your job.
Cash assistance can be temporary or permanent. You may qualify for extra cash in your pocket if you are disabled, a parent, retiring soon, or have a low income. Discover four common government programs offering financial help.
The federal government sent stimulus checks to qualifying Americans in response to the COVID-19 pandemic’s effects on the economy and household finances. Due to the outbreak, many individuals experienced a financial crisis, such as losing their job or incurring high medical bills.
The Internal Revenue Service (IRS) sent three rounds of payments. Each stimulus update had different amounts and requirements. Basic IRS relief check requirements included being a U.S. citizen or resident alien, and taxpayers and dependents must have had a valid Social Security number to get one.
The IRS used each taxpayer’s 2019 and 2020 tax filings to determine if they met the basic, age, income, and dependent requirements. Their filings also established their IRS stimulus check amount. For instance, parents could have received an additional amount for each qualifying dependent.
The following are the IRS stimulus check amounts and requirements for each round:
· First Round in April 2020 as part of the Coronavirus Aid, Relief, and Economic Security (CARES) Act
o Each qualifying adult taxpayer receives the maximum amount of of $1,200 if their annual adjusted gross income is less than:
- $150,000 as a married couple, widow, or widower.
- $112,500 as head of household.
- $75,000 as single or any other status.
o Each qualifying adult taxpayer receives a tapered amount between $1,199 and $1 with incomes between the above amounts and up to:
- $198,000 as a married couple, widow, or widower
- $136,500 as head of household
- $99,000 as single or any other status
o Each eligible dependent younger than 16 years of age receives $500
· Second Round in December 2020 to January 2021 as part of the Coronavirus Response and Relief Supplemental Appropriations Act of 2021
o Each qualifying adult taxpayer receives the maximum of $600 if their annual adjusted gross income is less than:
- $150,000 as a married couple, widow, or widower.
- $112,500 as head of household.
- $75,000 as single or any other status.
o Each qualifying adult taxpayer receives a tapered amount between $599 and $1 with incomes between the above amounts and up to:
- $174,000 as a married couple, widow, or widower
- $124,500 as head of household
- $87,000 as single or any other status
o Each eligible dependent younger than 16 years of age receives $600
· Third Round in March 2021 as part of the American Rescue Plan
o Each qualifying adult taxpayer receives the maximum of $1,400 if their annual adjusted gross income is less than:
- $150,000 as a married couple, widow, or widower
- $112,500 as head of household
- $75,000 as any other status
o Each qualifying adult taxpayer receives a tapered amount between $1,399 and $1 with incomes between the above amounts and:
- $160,000 as a married couple, widow, or widower
- $120,000 as head of household
- $80,000 as any other status
o Each eligible dependent receives $1,400 without an age restriction
The IRS sent these stimulus payments using the same payment method used to receive tax refund payments, including checks, direct deposits, and electronic benefits cards. Some taxpayers missed their stimulus payments direct deposit if their bank account changed or check if they moved.
Here are the steps for claiming stimulus check on taxes:
1. You must file a 2020 or 2021 tax return, even if you do not do so typically. You can no longer use the IRS Get My Payment tool to claim missed stimulus payments.
2. Check your IRS online account to view the check amounts you received or were supposed to receive. You will need these amounts to calculate your Recovery Rebate Credit.
3. Complete Form 1040 Recover Rebate Credit Worksheet.
By Admin –
