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Covid Relief

Tips To Make The Most Out Of Your Coronavirus Stimulus Checks

A coronavirus stimulus check may not pay all of your pandemic bills. It can certainly help, though, and here are a few tips to make the most out of it.

Making up lost income from the pandemic can be challenging. As bills piled up, revenue went down due to all of the shutdowns. And now that many companies want those bills paid after giving you a bit of breathing room, you may be wondering how you’ll do it.

You can put a small dent in your bills with COVID-19 Economic Impact Payments. These stimulus checks have been authorized by the government twice now. To get you up to speed, here are some of the details:

When They Were Announced

The first set of Economic Impact Payments were made official last March. The second set was finalized in December 2020.

How Much They’re Worth

The first stimulus checks offered $1,200 per eligible adult and $500 per dependent child. The second round dropped the adult payout to $600 and raised the child payout to $600.

How to Calculate Your Stimulus Payments

If there are two adults and three children in your family, this is what your first stimulus check would equal:

$1,200 + $1,200 + $500 + $500+ $500 = $3,900

Your second check would equal:

$600 + $600 + $600 + $600 + $600 = $3,000

Stimulus Check Eligibility

It’s unfortunate, but not everyone is eligible for Economic Impact Payments. To qualify, you’ll need to be a U.S. citizen or resident alien with a valid Social Security number. You can’t be claimed as a dependent on someone’s taxes, and your adjusted gross income must fall within these limits:

  • Make less than $75,000 as an individual.
  • Make less than $112,500 as a head of household.
  • Make less than $150,000 as a married couple filing jointly.

You could still qualify if your income surpasses those limits. Your payout will be reduced, however. Here are the maximums for income before you’re disqualified:

  • $99,000 for individuals
  • $136,500 for heads of households
  • $198,000 for married couples filing jointly

Stimulus Payment Methods

  • Check by mail
  • Prepaid debit card by mail
  • Direct deposit to the bank account used to receive your tax refund or federal benefits

Delays in Stimulus Payments

If your payment is missing and you meet the eligibility requirements, make sure you filed your 2020 tax return. For free assistance, go to MyFreeTaxes or contact:

  • IRS-certified volunteers
  • 211 Economic Impact Payment Helpline at 844-322-3639

How to Use Your Stimulus Checks

Since the pandemic has probably been hard on your finances, you should use your stimulus payments to make the following moves:

  1. Buy groceries.
  2. Buy other household essentials.
  3. Pay past due bills for rent, mortgage, utilities, car, insurance.
  4. Pay upcoming bills.
  5. Create an emergency fund.
  6. Open a personal savings account that earns interest.

While it may be tempting to splurge on impulse purchases, making the above moves can keep you from financial trouble down the line.

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