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Your Stimulus Check is Coming Soon, Here’s How to Prepare

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Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act, which includes providing stimulus checks to stimulate the economy, and provide financial relief. The Treasury Department and the Internal Revenue Service will distribute these checks in the next three weeks. Here’s what you need to know to ensure you receive your check, and how to make the most of your money.

How Do I Get My Check?

These checks will distribute automatically, with no action required for most people. The IRS will use the information in your 2019 tax return to calculate your payment, and use the information in your filing to send or deposit your check. If you haven’t filed your return for 2019, the IRS will use information from your 2018 tax filing to calculate the payment.

Taxpayers who typically do not file returns will need to submit a simple tax return to receive the economic impact payment. Visit the IRS Non-Filers website to learn more about how to receive payment. https://www.irs.gov/coronavirus/non-filers-enter-payment-info-here

In the event your direct deposit account information changed, either the IRS will mail you a paper check, or you can update your direct deposit information via the Treasury Department.

You can also track your stimulus payment at https://www.irs.gov/coronavirus/get-my-payment

For more information about Stimulus Checks, please visit the IRS website at https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

What Should I Do With This Money?

Although these checks are intended to stimulate the economy, it might be best to consider these options:

Budget and Cover Necessary Expenses – Now is a good time to evaluate your budget and this check can help cover the essentials over the next few months. It’s also a good opportunity to evaluate your budget, and ensure you’re making the most of your money. If you don’t need to spend your payment, it’s best to save as much as possible.

Build Your Emergency Fund – Whether you’re currently working, or not, this check is a good opportunity to increase your savings. Experts recommend having money for three months of basic expenses, such as rent and food.

Pay Off Debt – Now is a good time to use these funds to help pay any outstanding debts. It’s best to pay off the highest interest rate debt first, to decrease any interest you’re paying.

Support Local Businesses – If you’re in a financial position to help support your local businesses, you can use these funds to help stimulate the economy. It can be a good time to find great deals, or consider opening a high-yield investment account.

If you’re needing a little help deciding how to best spend your stimulus check, make sure to check out our handy calculators. Here’s just a few that can make the decision easier:

For Frequently Asked Questions about Stimulus Payments, please visit https://www.centralbank.net/cares-act-stimulus-checks-faqs/.

Sources:
https://www.irs.gov/newsroom/economic-impact-payments-what-you-need-to-know

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