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Stimulus Checks – Purpose and Eligibility Criteria

By Stephanie Armstrong, Senior Content Writer

Updated on February 20, 2024 / 4 min read

Stimulus Checks – Purpose and Eligibility Criteria

Stimulus checks are payments delivered by the government to taxpayers through different means, including mail and bank deposits or as tax credits to lower tax bills. The main goal of a stimulus check is to encourage spending during an economic crisis. They could be one component of a larger federal stimulus package structured to support the economy. For instance, the government issued stimulus checks in recent years to alleviate financial hardships caused by economic downturns.

Purpose of a stimulus check

A stimulus check is a payment made through a paper check or direct deposit to individual taxpayers. The government delivers it to eligible recipients during an economic crisis to stimulate the economy. Stimulus checks are intended to drive revenue for retailers and manufacturers. By issuing these checks to taxpayers, the government aims to facilitate economic growth, as individuals use the funds to make purchases.

Check stimulus status

The IRS has carried out the issuance of all first, second, and third Economic Impact Payments. The previous “Get My Payment” application may no longer be functional for checking payment status. One can check the amount of Economic Impact Payment issued to them by logging into the IRS account. Additionally, individuals might be eligible to claim a Recovery Rebate Credit on their 2020 and 2021 federal tax returns if they did not get an Economic Impact Payment or received less than the complete amount.

Check payments received

To check the amount of Economic Impact Payments received, one should refer to the following sources:

1. Online account

The IRS account has details of the first, second, and third Economic Impact Payment amounts under the “Economic Impact Payment Information” section on the Tax Record page.

2. IRS EIP notices

The IRS mailed a few notices to addresses they have on file.

Notice 1444: This indicates the first Economic Impact Payment sent for the tax year 2020.
Notice 1444-B: It indicates the second Economic Impact Payment sent for the tax year 2020
Notice 1444-C: It gives the details of the third Economic Impact Payment sent for the tax year 2021.

3. Letter 6475

In March 2022, the IRS mailed the letter 6475, which confirms the total amount of the third Economic Impact Payment and any plus-up amounts one received for tax year 2021. To calculate one’s Recovery Rebate Credit, one must refer to the total payment information provided in their online account or the letter. For married couples filing together, each spouse must check their respective online account or review the letter to determine their individual half of the total payment.

Eligibility criteria

The government typically issues requirements for each direct payment made. For instance, one must be a citizen or resident of the country and cannot be a dependent claimed on someone else’s tax return. The government may also impose income limits based on tax filing statuses. This includes single filers, heads of households, married couples filing together or individually, and widowed candidates. One has to meet a few key eligibility criteria for receiving stimulus checks.

1. Income limits

Single filers: If one is filing as a single person with an adjusted gross income (or AGI) of up to $75,000, they can receive the full payment. For AGI above this limit, the payment amount decreases by 5% for every additional $100 of income, with a phase-out ending at $99,000.
Married couples filing together: To receive the full payment, they should have an AGI of up to $150,000. Above this AGI limit, the payment decreases by 5% for every additional $100 of income, with a phase-out ending at $198,000.
Head of household: To receive the full payment, one’s AGI must be $112,500 or less. If one’s AGI is above this limit, the payment amount decreases by 5% for every additional $100 of income they earn and the payment stops completely once the AGI reaches $136,500.
Individuals with zero income are still eligible to receive the payment.

2. Age requirements

There is no age requirement for the stimulus check, but one cannot claim to be another individual’s dependent. Children must be under 17 to receive the additional payment for which they are eligible.

3. Taxpayer identification number (TIN)

A tax filer must have a valid Social Security number (SSN).
For married couples filing jointly, if one partner has an SSN and the other has an Individual Taxpayer Identification Number (or ITIN), the partner with the SSN or their child with an SSN or Adoption Taxpayer Identification Number (ATIN) could receive the amount.
If one spouse is an active military member, both spouses qualify for a stimulus check, even if only one has an SSN and the other has an ITIN.

4. Citizenship or residency

To qualify for a stimulus check, an individual must be a citizen of the country, a permanent resident, or a qualifying resident alien.

Difference between stimulus checks and tax credits

A stimulus check is designed to boost the economy during an economic downturn by providing direct payments to individuals. In contrast, a tax credit reduces the amount of tax one owes at the end of the year, lowering one’s overall tax bill.