Decoding the Distribution of COVID-19 Stimulus Checks- Who Issued the Financial Relief-
Who gave out stimulus checks during COVID?
The COVID-19 pandemic has brought about unprecedented challenges and economic hardships across the globe. One of the most significant measures taken by governments worldwide to mitigate the financial impact of the pandemic was the distribution of stimulus checks. These checks were designed to provide immediate financial relief to individuals and families who were affected by the economic downturn caused by the pandemic. In this article, we will explore who was responsible for giving out these stimulus checks during the COVID-19 crisis.
Role of the U.S. Government
In the United States, the responsibility for distributing stimulus checks fell under the purview of the federal government. The U.S. Treasury Department, in collaboration with the Internal Revenue Service (IRS), played a crucial role in the distribution process. The initial round of stimulus checks, known as Economic Impact Payments (EIPs), was authorized by the CARES Act, which was signed into law on March 27, 2020.
Eligibility and Distribution
To ensure that the stimulus checks reached the intended recipients, the IRS used the tax information from the previous year to determine eligibility. Individuals who had filed a tax return for 2019 or 2020, as well as those who were not required to file a tax return, were eligible for the checks. The amount of the stimulus check was based on the filer’s adjusted gross income (AGI), with eligible individuals receiving $1,200, plus $500 for each qualifying dependent.
Payment Methods
The IRS utilized various payment methods to distribute the stimulus checks, including direct deposit, paper checks, and debit cards. The agency encouraged individuals to provide their direct deposit information to expedite the payment process. For those who did not have a bank account or direct deposit information, the IRS issued paper checks or Economic Impact Payment (EIP) cards.
Subsequent Stimulus Checks
As the pandemic continued to unfold, the U.S. government authorized additional rounds of stimulus checks. The second round of checks, authorized by the Consolidated Appropriations Act of 2021, provided eligible individuals with $600, while the third round, part of the American Rescue Plan Act of 2021, offered $1,400 to qualifying recipients. These subsequent checks were distributed using the same process as the initial round.
International Distribution
While the U.S. government was primarily responsible for distributing stimulus checks within its borders, other countries also implemented similar measures. In many cases, these countries’ governments worked with their respective tax authorities to determine eligibility and distribute the checks. For instance, in Canada, the Canada Revenue Agency (CRA) was responsible for distributing the Canada Emergency Response Benefit (CERB) and the Canada Recovery Benefit (CRB).
Conclusion
In summary, during the COVID-19 pandemic, the responsibility for distributing stimulus checks varied by country. In the United States, the U.S. Treasury Department and the IRS played a pivotal role in ensuring that eligible individuals received the financial relief they needed. As the pandemic continued to evolve, governments around the world adapted their strategies to provide ongoing support to their citizens.
