If you live in one of the states listed above, you may be eligible for a $500 stimulus check in the next week. This new program, funded by both the federal and state governments, attempts to alleviate the financial hardship that many families are still experiencing in the aftermath of the COVID-19 outbreak.
The IRS oversees this project, which is part of a larger series of initiatives called Economic Impact Payments. These initiatives largely target individuals and families with low to moderate incomes, who have been disproportionately affected by inflation and other economic concerns caused by the pandemic.
How will stimulus checks be distributed?
These stimulus checks will be issued via 2024 stimulus cards. These prepaid cards will allow beneficiaries to use the $500 to cover critical expenses such as gasoline, rent, heating supplies, groceries, and water, among others.
In California, for example, about 150 inhabitants of Fresno County will be enrolled in the Guaranteed Income Program. The state and federal governments will jointly subsidize these residents’ $500 monthly stipend. This financial aid is planned to be distributed starting in August 2024.
Similar efforts in different states
The state of Michigan has also begun a similar initiative in Ann Arbor, where 100 people will receive monthly checks of $528 beginning August 2024. This effort is part of the Guaranteed Income Program, which aims to assist small business owners and entrepreneurs in navigating economic problems and promoting business growth.
The University of Michigan’s Poverty Solutions team has played an important role in the program’s implementation. The purpose is to stimulate the local economy and provide financial assistance to those in most need.
Check the status of your stimulus check or prepaid card
Use the IRS “Get My Payment” option at IRS.gov. This is the official way to find out when you will get your payment. Please enter your Social Security number, date of birth, street address, and ZIP code.
- If you are eligible, the tool will reveal whether your payment has been paid or is scheduled. It will also specify how and where the item will be delivered (direct deposit or postal).
- A “Payment Status Not Available” notification indicates that the IRS is still processing your payment, requires additional information, or you are ineligible.
- A “Need More Information” notification indicates that your payment could not be delivered and was returned to the IRS. You can amend your information to have the payment reissued.
Payments may be made via direct deposit, paper check, or prepaid EIP debit card. Paper checks will come in a white Treasury envelope. EIP Cards will likewise arrive in a white envelope with the Visa logo.
The EIP Card allows you to make purchases anywhere Visa Debit Cards are accepted, earn cash back at merchants and ATMs, and transfer funds to your bank account without incurring fees.
To activate your EIP card, call 1-800-240-8100. Sign the back and save the card number somewhere safe.
If you missed the first or second stimulus installments, you may be able to claim the 2020 Recovery Rebate Credit by filing your 2020 tax return.
Why do we need a new $500 stimulus check?
The COVID-19 pandemic had a disastrous effect on the US economy. The extensive shutdown of enterprises, along with severe lockdown measures, resulted in huge job losses and a sharp increase in unemployment, which reached 14.8% in April 2020. Furthermore, it is anticipated that over 22 million individuals will lose their employment, and approximately 200,000 enterprises will shut down permanently by 2021.
The pandemic’s impact extended beyond job losses. Disruptions in supply chains and decreased consumer spending contributed to a 3.4% GDP loss, the worst since 1929. Tourism, hospitality, and retail were especially heavily hit.
In response, the United States government pumped large amounts of money into the economy, totaling $5 trillion in stimulus attempts to keep the country afloat. However, despite these efforts, recovery has been patchy, with many citizens still struggling to achieve financial stability.
How the $500 stimulus payment enables families to move forward
This new $500 stimulus cheque is intended to address the persisting difficulties. Many people rely on this financial support to meet their basic requirements and stay afloat in an uncertain economic environment.
Furthermore, guaranteed income schemes, such as those being introduced in California and Michigan, provide a consistent stream of income, allowing families to better plan for their financial future. These initiatives not only assist with urgent needs but also provide opportunities to engage in minor renovations or business development, which can have a multiplier effect on the local economy.
What to expect from future stimulus packages
While the $500 stimulus check is a temporary solution, some analysts believe that similar initiatives will become more regular in the future, especially if the economy continues to confront substantial issues. The idea of a universal basic income, for example, has gained support in public debates and may become a reality in the coming years.
In any event, the United States government is eager to experiment with various techniques to ensure that citizens, particularly those in more vulnerable positions, can manage economic challenges.
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