Stimulus Check: How to Effectively Use Your $1,200 Amid Coronavirus Pandemic

The $2.2 trillion stimulus package passed by Congress and signed by President Donald Trump includes a one-time stimulus check for American taxpayers. Individuals with an adjusted gross income of less than $75,000 or married couples earning less than $150,000 will receive the full $1,200 per person check, meant to help them through the coronavirus pandemic. For millions of Americans, the check will help with immediate needs and make important payments during this difficult time.

While Twitter users joked about how they would spend the money, most should take the $1,200 seriously. As CNET suggests, it is important to use the money first on essentials, like food, monthly bills, rent and mortgage. Food should be seen as a top priority though. You should check with utility companies, banks, landlords and other jurisdictions to see if any relief is available during the coronavirus crisis first.

Another option is paying your taxes. Treasury Secretary Steven Mnuchin already pushed back the filing deadline to pay 2019 income taxes to July 15. If you paid your 2018 taxes, you will still get a stimulus check and should be able to use that to pay back the government, if you owe any money, especially if you did not already save enough before facing financial hardship.

Reducing your debt by making sizable payments to credit card bills or student loans is also a good idea. Making payments will keep your interest down so you have to pay less in the future. Again though, it is important to check with banks or lenders to see if there is any relief, such as waived interest and deferred payments.

You could also use the money to give to those in need or start an emergency fund. Since the situation could change at any moment, it would be a good idea to hold some money back as a “rainy day fund.” The stimulus package also includes an additional $500 per child. That check could be used to start an investment account for their future.

The stimulus checks will reportedly be in the hands of taxpayers by Wednesday. According to Politico, the Treasury Department is expected to tell banks to expect the checks on Friday, but it will take a few extra days for the deposits to be complete due to the Easter holiday. The IRS will be sending the checks through direct deposit to taxpayers they already have bank account information for. It is also possible to get the checks mailed out to you.

The stimulus package signed last month only includes a one-time check, but Trump suggested there could be another one in the future. “We could very well do a second round,” he said during a briefing Monday. “It is absolutely under serious consideration.” Mnuchin also said on April 2 he was “committing to two weeks” to get the first stimulus check out, adding, “This money does people no good if it shows up in four months.”