The COVID-19 pandemic changed the world, affecting economies everywhere. In the US, the government responded with various measures to help people financially. One major aid was the stimulus checks, designed to support individuals and families during tough times and boost spending to help the economy recover.
Stimulus checks are payments made directly by the US government to taxpayers. These payments could be sent by direct deposit or as paper checks. During the pandemic, these checks were especially important for people facing financial difficulties.
Let’s break down what the stimulus checks were and how much they provided in each round.
First Stimulus Check
In April 2020, the first round of Economic Impact Payments was introduced under the CARES Act. This check gave up to $1,200 to eligible individuals and $500 for each dependent child. The amount was aimed at people earning up to $75,000 per year.
Those earning between $75,000 and $99,000 saw a gradual reduction in their payment amount. Most people received their money by direct deposit or paper check by mid-April, though some received prepaid debit cards in late May or June.
Second Stimulus Check
The second stimulus check was approved in December 2020 under the Tax Relief Act. It provided $600 to each eligible adult and an additional $600 per dependent child under 17. This round had slightly higher income limits for eligibility compared to the first check.
For married couples filing together, they could receive up to $1,200 plus $600 for each dependent child. Payments started going out in late December 2020.
Third Stimulus Check
The third stimulus check came in March 2021 under the American Rescue Plan. It offered $1,400 per eligible person and $1,400 for each dependent, regardless of age. This meant families with many dependents could get substantial amounts of money. Similar to the first two checks, most payments were made through direct deposit, with some 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 started 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 was the purpose of the stimulus checks?
The stimulus checks were designed to help people financially during the COVID-19 pandemic, boosting consumer spending and supporting economic recovery.
2. How much did each stimulus check provide?
First Check: Up to $1,200 for individuals and $500 per child.
Second Check: $600 per individual and $600 per child.
Third Check: $1,400 per individual and $1,400 per child.
3. Who was eligible for the stimulus checks?
Eligibility was based on income. For the first two checks, individuals earning up to $75,000 ($150,000 for couples) were fully eligible, with payments decreasing for higher incomes. The third check had similar criteria but with higher thresholds.
4. When were the stimulus checks distributed?
First Check: April 2020.
Second Check: December 2020.
Third Check: March 2021.
5. Are there any more stimulus payments coming?
As of December 31, 2021, the IRS stopped issuing federal stimulus payments. However, some states have their own programs offering financial support.