The U.S. Government implemented several rounds of stimulus payments to support individuals and families financially impacted by the COVID-19 pandemic.
These efforts began with the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) in March 2020, which provided up to $1,200 per adult and $500 per child under 17 for eligible recipients.
The aim was to mitigate financial hardships during the pandemic by distributing direct financial aid to a broad segment of the population.
Details of Stimulus Payment Phases
- Initial Phase (CARES Act): Started in March 2020, providing up to $1,200 for eligible adults and $500 per qualifying child, with payments phased out for higher earners.
- Subsequent Relief (American Rescue Plan Act): Enacted in March 2021, this phase included payments of up to $1,400 per individual or $2,800 for married couples filing jointly, plus an additional $1,400 per dependent, expanding eligibility to adult dependents.
The payments decreased for individuals with an adjusted gross income (AGI) over $75,000 and $150,000 for married couples filing jointly.
A typical family of four could receive as much as $3,400 under the CARES Act and potentially more under the American Rescue Plan due to the inclusion of adult dependents.
Automatic Payment Process
For the third round of payments, initiated by the American Rescue Plan, the IRS automatically processed and began disbursing payments in April 2021.
Individuals did not need to take extra steps to receive these funds if they were eligible.
How to Address Missing Payments
If recipients expected a payment and did not receive it, they were advised to check the IRS’s “Get My Payment” tool online or contact the IRS directly for assistance.
This tool provided personalized information about the status of one’s stimulus payment.
Conclusion
The stimulus payments distributed during the COVID-19 pandemic played a crucial role in providing financial relief to millions of Americans.
These initiatives helped to cushion the economic blow dealt by the pandemic, supporting household stability during unprecedented times.
FAQs
1. What were the eligibility criteria for the initial stimulus payments?
Eligibility was based on AGI, with full payments for those earning up to $75,000 (individuals) and $150,000 (married couples), and reduced payments up to certain income thresholds.
2. How much were the stimulus payments under the American Rescue Plan?
Up to $1,400 per individual, $2,800 for married couples, plus $1,400 for each qualifying dependent, including adults.
3. When did the IRS start distributing the third round of stimulus payments?
The IRS began distributing these payments in April 2021.
4. What should I do if I didn’t receive my expected stimulus payment?
Check your payment status using the IRS’s “Get My Payment” tool or contact the IRS for further assistance.
5. Can I still claim a missing stimulus payment?
Yes, if you did not receive a payment and were eligible, you may need to claim it as a Recovery Rebate Credit on your tax return or follow up with the IRS.
