To address financial hardships from the COVID-19 pandemic, the U.S. government, through the CARES Act and the American Rescue Plan, issued stimulus payments with adjustments based on updated tax information, providing financial relief directly to eligible individuals and families.
U.S. Government’s Stimulus Payments: Relief Efforts Through the CARES Act and American Rescue Plan Act
According to Marca, it’s great that the U.S. government stepped in to provide financial assistance to people affected by the COVID-19 pandemic. The stimulus payments were a lifeline for many, thanks to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the American Rescue Plan Act. Through these acts, eligible individuals received Economic Impact Payments to help them through the tough times. The payments were meant to alleviate some of the financial burdens caused by the pandemic.
The CARES Act, starting in March 2020, offered up to $1,200 per eligible adult and $500 for each qualifying child under 17. However, the payment amounts decreased for individuals with an adjusted gross income (AGI) over $75,000, or married couples with a combined AGI over $150,000. Despite the limitations, these payments were crucial for many struggling families and individuals. In March 2021, the American Rescue Plan Act brought a new wave of relief with $1,400 payments for eligible individuals and $2,800 for married couples filing jointly. Additionally, each qualifying dependent, including adult dependents, received an extra $1,400. This additional round of Economic Impact Payments aimed to provide further support during the ongoing crisis.
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$1,200, $1,400, and $2,800: Understanding the 3 Rounds of Stimulus Payments from the US Government (PHOTO: CNBC)
How to Check and Receive Your Third Round of Stimulus Payments in 2024
The IRS began distributing the third round of payments in April 2024, with most people receiving their payments automatically. However, if you’re one of the few who hasn’t received your payment yet, it’s essential to reach out to the IRS to investigate any potential errors. Utilizing the IRS Get My Payment tool, launched on March 15th, can help you track the status of your payment. Moreover, eligible individuals may receive a “plus-up” payment based on updated information the IRS received after the initial payments were issued.
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