Now that the $2 trillion coronavirus stimulus bill has been signed into law, you’re probably wondering what that means for you. Here are some important questions and answers about the stimulus checks.
How Much Will Your Check Be?
The amount you’ll receive from the stimulus bill depends on your most recent tax returns. First off, if your gross income was more than $99,000, you will not get a check. However, as pay decreases, the checks kick in. According to US News, if your gross income was $75,000 or less, you’ll receive a check for $1,200. If you and your spouse filed jointly and you earned up to $150,000, you’ll receive $2,400. If you earned $112,500 or less as the head of household, you’ll also get $1,200. If you have kids under 17 years old, you’ll receive an additional $500 for each one. Note: College students and young adults still claimed as dependents by their parents (and anyone else claimed as a dependent) should know they will not receive checks.
How Should I Spend My Check?
There is no right or wrong answer for how you should spend your check. However, if you’re unemployed right now or your finances have been negatively impacted due to the coronavirus, you should funnel the check toward needs. Use the cash for heat, water, energy bills. Use it for groceries. If you’re set for the necessities, make sure your emergency savings account is as flush as it should be, then use it on minimum debt payments.
Should I Save My Check?
If you’re financially stable and this truly is money you don’t need right now, you can always simply save the check. However, as a lot of stocks are on sale right now, it might be a good idea to invest in the market. Another option? Inject some of that cash into your local economy by ordering takeout from your favorite restaurant. Small local businesses need your help now, and some of your favorite dishes may help lift your mood.