Due to COVID-19, in March, the United States government authorized a $2.2 trillion congressional coronavirus relief plan for the nation. About $250 billion was set aside for direct payments to individuals and families. This week instead of paying taxes, millions of Americans will receive a stimulus payment. Thankfully, I am one of those lucky individuals. Keep reading to learn how I spent mine.
Who is Eligible?
Based on the latest tax return on file (2018 or 2019) with the Internal Revenue Service (IRS), individuals and heads of households are eligible for up to $1,200, and married couples are eligible for up to $2,400 — plus $500 per child 16 and under. Payments start phasing out for individuals with adjusted gross incomes (AGIs) above $75,000, heads of households earning more than $112,500, and married couples who earn more than $150,000. The amount will then be reduced by $5 for every additional $100 of adjusted gross income.
Per my income, I was eligible for about $1,100.00. For the past few days, I have been anxious to receive my funds, so I checked my bank account daily for it. To my glee, I received it yesterday! Thank goodness I had my banking information on file with the IRS.
How I Spent It?
Initially, I considered saving the entire $1,100 in a high-yield savings account, but with interest rates being so low, that felt like a waste. I would have re-considered if I didn’t have an emergency fund already.
For me, paying off debt and investing would serve me better. So, I ended up paying $800 to a credit card and the remaining $300 went to my investment accounts. I am hoping my credit score will increase, and my investment will pay me dividends as a result.
How are you spending your stimulus payment? Let us know in the comments.
Check the status of your stimulus payment via the IRS here.
Please read the post entitled Carpe Diem if you want to be inspired by Meme’s financial goals for the year.
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