DES MOINES, Iowa — A $2 trillion stimulus bill passed the Senate and House and was signed by the president Friday afternoon. A portion of this bill will aid American families and individuals who are financially struggling due to COVID-19.
The bill will give a $1,200 check to individuals who make $75,000 a year or less. People who make more than $75,000 a year will receive smaller checks.
The bill gives a $2,400 check to married couples who make a $150,000 a year or less. Plus, they will receive $500 for each child in the family.
High-income individuals without children who make more than $99,000 a year do not qualify for a check. The same goes for married couples earning more than $198,000 a year.
Michael Mitchell, an associate professor of international business and strategy at Drake University, has a list of best practices once you get that check.
- Take care of critical needs like rent, food and medication.
- Start an emergency fund. He said 50 percent of Americans are living paycheck to paycheck, so this would be a good opportunity to set some emergency money aside.
- Pay off debt.
- Consider investing.
- Shop in your community to support the local economy.
- Finally, donate money to nonprofits that are working to help others in our community.
“If you don’t have any other critical needs and if you want to support your communities, consider donating this money to prop up those nonprofits that are serving the most vulnerable around us,” Mitchell said.
The IRS will use 2019 taxpayer forms to determine how much a person’s check should be and where it should be sent. If your 2019 taxes have not been filed yet, they will use information from your 2018 tax forms.