Upcoming $500 Stimulus Check: Important Information on Payments Due Next Week!

In September 2024, low-income families might see a $440 increase in their monthly income as part of a new financial relief program. This initiative, supported by both federal and state governments, is designed to ease the financial burden on families still struggling from the effects of the COVID-19 pandemic. Here’s a detailed look at what to expect, including eligibility criteria and payment details.

What Is the New $500 Stimulus Program?

Starting this month, a $500 stimulus check will be distributed to qualifying residents in various states. This program, overseen by the IRS, is part of a broader effort known as Economic Impact Payments. These payments are targeted at individuals and families with low to moderate incomes who have been severely affected by inflation and other economic issues exacerbated by the pandemic.

How Will the Stimulus Checks Be Distributed?

The $500 stimulus checks will be delivered via prepaid cards throughout 2024. These stimulus cards are designed to help recipients manage essential expenses, such as gasoline, rent, heating supplies, groceries, and water.

For example, in California, around 150 residents of Fresno County will receive monthly payments of $500 starting in August 2024. This is part of a Guaranteed Income Program funded by both state and federal governments.

Similarly, Michigan is launching a comparable initiative in Ann Arbor, where 100 residents will receive monthly checks of $528 beginning in August 2024. This program aims to support local business owners and entrepreneurs, helping them overcome economic challenges and promote business growth.

How to Check Your Stimulus Check Status

To check the status of your stimulus check or prepaid card, use the IRS “Get My Payment” tool on IRS.gov. This tool allows you to track when your payment is scheduled to arrive. You’ll need to enter your Social Security number, date of birth, street address, and ZIP code.

Here’s what the status messages mean:

• “Payment Status Not Available” means the IRS is processing your payment, needs more information, or may not consider you eligible.
• “Need More Information”: Your payment couldn’t be delivered and was returned to the IRS. Update your information so the payment can be reissued.

Payments can be made via direct deposit, paper check, or prepaid EIP debit card. Paper checks arrive in a white Treasury envelope, while EIP Cards arrive in a white envelope with a Visa logo.

With the EIP Card, you can make purchases anywhere Visa Debit Cards are accepted, get cash back at merchants and ATMs, and transfer funds to your bank account without fees. Activate your EIP Card by calling 1-800-240-8100, signing the back, and keeping the card number safe.

If you missed the first or second stimulus payments, you might be eligible to claim the 2020 Recovery Rebate Credit by filing a 2020 tax return.

Why Is a New $500 Stimulus Check Necessary?

The COVID-19 pandemic had a severe impact on the U.S. economy, leading to widespread business closures and a spike in unemployment rates, which hit 14.8% in April 2020. Over 22 million people lost their jobs, and about 200,000 businesses closed permanently before 2021.

The pandemic caused disruptions in supply chains and reduced consumer spending, contributing to a 3.4% drop in GDP—the largest since the Great Depression of 1929. Sectors like tourism, hospitality, and retail were hit particularly hard.

In response, the U.S. government injected about $5 trillion into the economy to support recovery. Despite these efforts, many Americans are still struggling financially.

How the $500 Stimulus Check Helps Families

This $500 stimulus check provides much-needed financial relief, helping families cover basic needs and navigate ongoing economic uncertainty. Guaranteed income programs, like those in California and Michigan, offer a stable income source, allowing families to plan their finances better.

These programs not only assist with immediate expenses but also encourage investment in small improvements or business development, boosting the local economy.

Read More: Labor Day 2024: What You Need to Know About the $1,400 Stimulus Payment?

What to Expect in the Future

While the $500 stimulus check is a temporary measure, experts believe similar programs might become more common if the economy continues to face challenges. The idea of a universal basic income is gaining attention and could potentially be implemented in the future.

The U.S. government is exploring various strategies to ensure that citizens, especially those in vulnerable situations, can manage economic difficulties and work toward financial stability.