Will College Students Get Stimulus Checks ? A stimulus check is an initiative that the US government first started in 2008. This was a response to the great financial trouble in America at the time. It is an initiative that provided checks to the citizens to keep the economy running.
College students and stimulus checks:
- Stimulus checks for students that go to college are part of the CARES Act.
- The CARES Act was signed on March 11, 2021.
- This Act provides checks to both individuals and families.
- This is known as the American Rescue Plan.
- This is a 1.9 trillion-dollar relief package.
- Colleges and universities received $40 billion in funding.
- Half of this was to be used to help students in financial crises.
- Students who receive money from this initiative can use it for anything.
- This includes tuition, housing, mental care, and food.
- Each institution has its criteria for qualifying for financial aid.
- To learn what the criteria are, and how to apply you should contact your school’s financial office.
- There is a payment and interest freeze on all financial aid provided until 31 August 2022.
- Because of this initiative, all student debt that was forgiven from 31 December to 1 January 2026 will not be taxable.
- This will save student loan borrowers thousands of dollars in taxable income.
- Unfortunately, the CARES Act does not provide financial relief for any student who has undergone private financial aid.
- Because of the effect that Covid has had on the economy, many students that were working to pay for their tuition and boarding have either been let go or have had their income decreased.
- Because of this fact, they have been included in the CARES Act financial aid scheme.
- If they qualify for the financial aid, students can receive up to $1800 a month in stimulus checks.
- The only students who will be eligible to be entered into the scheme are those students who have not been added as independent on another stimulus application.
- The only way to receive your checks is to file regular tax returns.
- The government makes sure of your income, as you will only qualify if your income does not exceed a certain limit.
- If you do qualify, but do not file regular tax returns, you will not be able to receive your checks, as the government will not have an address to send them to.
Stimulus checks have been around for a while and are always provided to those in need during times of great financial crisis.
The most recent round of stimulus checks has been sent out due to the devastating effect Covid has had on the economy.
Many people have lost their jobs and had no way to pay for food and housing, So the US government took steps to ensure that they would still be able to buy what they needed. These steps also meant that the economy still had movement and would not completely crash.
This financial aid scheme was first signed by President Donald Trump in 2020, and most recently renewed by President Joe Biden.
The first round of stimulus checks for college students totaled $1200 per qualifying student. The checks signed by President Biden totaled $600, making the total of the checks received $1800 per qualifying student.
The stimulus checks are accessible to anyone who qualifies, as long as they are above the age of 17.
If you still live with your parents, or your parents put you as a dependent on their tax returns, you, unfortunately, do not qualify for stimulus checks.
The best way to know if you qualify for a stimulus check is to file regular tax returns and figure out what your annual income is. Certain financial qualifications need to be met before you can qualify.
The idea behind the stimulus checks is to give as much financial aid to the citizens of the economy, and in turn to keep the economy flowing as smoothly as possible.
The economy of the world has taken great damage because of Covid. Millions of people ended up jobless and without the means of paying their bills and buying what they need to keep their households running and put food on the table.
But not everyone can qualify for the financial aid. Students who were 17 years or older the first time the stimulus checks were released in 2020, did not qualify for stimulus checks.
But now they will be able to receive the stimulus checks if they meet certain criteria.
Requirements for a college student:
For dependents – If you are claimed as a dependent on someone else’s tax return, then that person only qualifies for a one-time stimulus check of $1400. Although some members of Congress have suggested that until Covid is over, the one-time checks should be increased to $2000.
For independents – If you provide more than half your financial support, then you would qualify for a third stimulus check.
Stimulus checks can be spent however the college student wants. The goal of the check is to ease the financial burden on a student, so they decide how the money will be spent.
If you don’t file tax returns and you are a student that earns less than $12400 annually. Even though they qualify for a check, the IRS won’t know where to send it. To circumvent this problem, simply go to your closest IRS office to fill out your tax returns for the last year. Once you have done so, the IRS will do the rest and you should receive your checks.
However, you have a lot of paperwork to do to prove it. You will have to change your tax status, and you will only qualify if you prove that you are financially independent when filing your tax returns.
If you are an independent, you will qualify for a stimulus check if you turned 24, started working in 2020, or got married. If you moved out of your parent’s house or started to work, then you will qualify for an $1800 stimulus check.
The $1800 check will consist of the first payment of $1200, and the second of $600. You will be eligible for this because of how your lifestyle has changed before 2019 and 2020.
Here are the common questions asked by students about stimulus checks.
- What are the income limits for stimulus checks?
Yes. If you earn more than $75000 annually, the check will start to phase out. This is for adjustable income, not taxable income.
- How do I know if I will receive a stimulus check?
If you are a college student that has been claimed as a dependent on your parent’s tax return, then you do not qualify for a stimulus check.
The taxing authorities will see you as a dependent if your parents pay for at least half your expenses, or if you are under 24.
If your tax return states that you pay for more than half your expenses yourself, then you will be seen as independent and will receive your check as long as you file your regular tax returns.
- What do I do if I have recently moved?
If you have recently moved, the stimulus checks won’t get sent to your new address unless you inform the IRS of your change of address.
It is recommended that you go to the closest IRS office near you and fill out Form 8822. You will also need to change your address at the US Postal Service.
This will ensure that all your stimulus checks and all related correspondence will be sent to the new address.
- Do I have to repay my stimulus checks?
No! A stimulus check is seen as a kind of tax refund. Because it was passed into law to help those in need of financial aid and the economical fallout of Covid, it is not seen as a loan, so needs no repayment.
It is also important to know that your stimulus check cannot be taxed.
- What if my bank account changed or the wrong information is given?
If this is the case, your stimulus check will not go through. The IRS will note this, and send a notification to the address given on your most recent tax return.
A stimulus check was sent out for the first time during the financial crisis of 2008. It was recently sent out again to aid all those that lost income or their jobs due to the impact of the Covid pandemic on the US economy.
Many individuals and couples qualify for a stimulus check, but certain conditions need to be met before you can qualify. To discover what these conditions are, either go to the closest IRS office near you or visit the IRS website at www.irs.gov.
Once you know if you qualify, it is time to claim your check. Make sure that your bank account information and address information are up to date and correct, and then you should be able to claim it.
You will receive a letter of payment about 15 days after the check has been sent. This will also be sent to your current address.