Stimulus checks refer to direct payments that the United States government pays to individuals including single moms during times of economic distress. They have been designed for boosting consumer confidence and encouraging taxpayers to drive revenue for manufacturers and retailers. In this way, the stimulus payments boost the economy. However, the interesting thing to note is that not everyone will qualify for a stimulus check and you need to fulfill the general eligibility requirements. The payment can vary depending on the filing status of single moms. For instance, joint taxpayers can receive twice the amount of single taxpayers. The National Bureau of Economic Research has witnessed that the delivery of stimulus payments makes a significant difference in the spending patterns of citizens. Therefore the implementation of fiscal stimulus by sending stimulus checks results in increasing consumer spending activities. It has also been witnessed that applying tax credits equivalent to the amount given through stimulus checks did not increase in spending activities of consumers. You must not confuse stimulus checks with tax credits since stimulus checks are direct payments made to individuals to reduce their relief while tax credits help in lowering their tax bill at the end of the year.
What Is A Stimulus Check?
A stimulus check is a direct payment made by the United States government to a taxpayer. These checks are made either through direct deposit or by paper check. The stimulus checks are intended to motivate people during their hardship and give the economy a boost. The stimulus checks are a part of the federal stimulus package which is designed to help individuals and support the economy and this is similar to stimulus payments that were a part of the CARES Act in 2020 and the American Rescue Plan in 2021. Between March 2020 to 2021, the United States government sent Americans around 3 rounds of stimulus payments to relieve their economic hardship.
Do Single Moms Get Stimulus Checks?
The US government has set certain eligibility requirements for stimulus checks and not everyone can qualify for it. Single mothers can get stimulus checks if they can fulfill all the eligibility requirements and conditions for direct payment. Every single recipient should prove that their citizens of the United States or legal residents and are not dependents claimed on another person’s tax return. The US government can also impose certain income thresholds based on the tax filing status of the individual. Single filers with adjusted gross income over a particular amount will not qualify for stimulus checks. This rule also applies to married couples who are filing separately or jointly, widowed individuals, and heads of households. Stimulus check payments made by the government help taxpayers to increase their spending power and give a boost to economic activity. The payments are either deposited into their bank account, mailed to the taxpayers, or applied as tax credits to reduce their tax bills. Single moms need to make sure whether they are entitled to receive stimulus checks or not.
Single Mom Stimulus Check Is A Way For Single Mothers To Get Help During Economic Hardship
The economic hardship and rising inflation have been a challenging time for single mothers who have to provide for their families on one source of income. Navigating the volatile job market and learning to homeschool your kids as a single mom are some economic hardships that single parents have to go through. By participating in stimulus checks for single moms they get an extra source of income through which they can cover their expenses such as food, rent, childcare, utilities, healthcare, and education. You get the freedom and flexibility to make choices that align with your goals and needs.
What Is Single Moms Stimulus Grant?
Single Mom Stimulus Grant is not the same as a single mom stimulus check. The Single Mom Stimulus Grant provides financial assistance of up to $500 to support and assist single moms during the economic fallout and in times of hardship. Emma Johnson launched the Single Mom Stimulus Grant to help single moms who are struggling and facing job loss, illness, healthcare problems, and financial difficulty to take care of their children. The founder of the grant received hundreds of social media messages and emails from single mothers who do not stay with their partners and are finding it difficult to pay their rent and homeschool their kids. As inflation takes its toll more single mothers are taking part in the Single Mom Stimulus Grant to get through their difficult situation. Single mothers are the primary caregivers of their kids and often lack affordable childcare, go through low-paying service jobs, and juggle parenthood and household obligations. Single mothers suffer a pay gap of around 29% and earn an average of seven cents for every dollar earned by males. Motherhood is drastically challenging for single moms. They have to navigate all the challenges alone. The Single Mom Stimulus Grant is open to all single mothers who are citizens of the United States and can demonstrate a strong financial need.
Examples Of Stimulus Check
A lot of Americans including single moms with Social Security numbers are eligible to receive stimulus checks. However, individuals filing married joint returns with partners using ITIN numbers will not initially receive stimulus checks. The entire stimulus check amount was available for single filers who were earning up to $75,000, $112,500 for heads of households, and $150,000 for married joint filers. The amount of stimulus checks was reduced for Americans with higher income by $5 per extra $100. The three stimulus checks have been distributed during the economic hardship and single moms who did not receive the full amount of stimulus funds need to file a tax return that covered their missing funds. However, it is unlikely for a fourth check to be authorized.
The stimulus check created a positive and significant impact on economic growth and employment. The United States government issued stimulus checks several times during economic turmoil. For instance, in March 2020 the United States government approved a bill for sending stimulus payments to needy Americans including single moms to provide financial relief during hardship. The CARES Act specified tax rebates of a family of four for $1200 and $500 for qualifying children. The rebate amount for household income higher than $75,000 annually for individuals and joint fillers was $150,000. The second stimulus check was provided in December 2020 worth $600. The American Rescue Plan Act was signed in March 2021 which included direct stimulus payments for single mothers and low-income individuals earning $75,000 or less per year and gave them a payment of $1400. Many states participated in the stimulus check program such as California, Florida, Colorado, Delaware, Hawaii, Georgia, Illinois, Idaho, Minnesota, Maine, Indiana, New Jersey, Oregon, New Mexico, South Carolina, Virginia, And Rhode Island.
Where Can Single Moms Invest Their Stimulus Check?
The priority of every single mother should be to cover their immediate bills with the help of a stimulus check. However, if you do not need money urgently then you can invest your stimulus check in many areas such as the following:
1. High Yield Savings Accounts
You can put your stimulus checks in a high-yield savings account. If you do not need money urgently or anytime soon then you can create an emergency fund. Depositing money in a high-yield savings account is easy to access and also provides a reasonable rate of return.
2. Certificate Of Deposit
Single moms can use their stimulus check to open a certificate of deposit that will offer a higher rate of interest compared to high-yield savings accounts and also does not require them to take any risk. Similar to savings accounts, Certificates Of Deposits are insured by FDIC for a specified period and you get the best deposit rates.
Brokerage enables single mothers to invest in many assets including stocks, mutual funds, and ETFs. You can get large returns by investing in online stock brokers. It is important to learn that stock market investments may go up and down and you can run the risk of losing your money. Single mothers who need money from stimulus checks within a period of 2 to 3 years should avoid investing in brokerage. Short-term investing can be less risky, unlike long-term brokerage investments.
4. Money Market Accounts
Single mothers can open money market accounts with the help of their stimulus checks. Money market accounts are quite similar to savings accounts and offer easier access to money, unlike checks and debit cards. Although the money market rates can be comparatively lower than interest on savings accounts, you get easier access to your money. Similar to a certificate of deposit and savings accounts, money market accounts are also insured by FDIC.
Single mothers have benefited a lot through stimulus check payment that is authorized by the government of the United States and helps them to cope with economic difficulties. The first payment of the check was approved in March 2020 under the CARES Act where individuals received payments of up to $1200 while dependents under 17 years received payments of $500. A subsequent relief bill was launched in December 2020 which provided an additional stimulus money of $600 to eligible single mothers and adults living with eligible dependents. The third release bill known as the American Rescue Plan Act signed by Joe Biden on 11th March 2021 gave $1400 to eligible single mothers, adults, and their dependents. The money was distributed by the Internal Revenue Service and was sent through direct deposit for paper checks and debit cards. Stimulus checks were an advance on the tax credit and you can claim your payment by filing a tax return. As the IRS is not sending out the advances, therefore filing a return is the only way through which single moms can get a hold of unpaid stimulus funds.