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6 Ways To Make an Impact With Your Stimulus Check

As we’ve quickly found out with the Coronavirus (COVID-19) pandemic, the unexpected can come along at any time. To assist those affected, the federal government has approved a $2 trillion stimulus package to support Americans during this time.

The package includes a payment for tax filers with adjusted gross income of up to $75,000 for individuals and up to $150,000 for married couples filing joint returns. For filers with income above those amounts, the payment amount is reduced by $5 for each $100 above the $75,000/$150,000 thresholds. Single filers with income exceeding $99,000 are not eligible. The same goes for joint filers with no children with income exceeding $198,000.

Eligible taxpayers who filed tax returns for either 2019 or 2018 will automatically receive an economic impact payment of up to $1,200 for individuals or $2,400 for married couples. Parents also receive $500 for each qualifying child. People who typically do not file a tax return, may still be eligible to receive these payments, however, you will need to file a simple tax return to receive an economic impact payment. Low-income taxpayers, senior citizens, Social Security recipients, some veterans and individuals with disabilities who are otherwise not required to file a tax return will not owe tax.

If you are an individual or family that will be receiving these funds, planning how you and your family will use this money will benefit you in the long run and can assist with your financial stability. We’ve compiled a list of ways to use your stimulus checks, if you will be receiving one.

Get your finances back on track

For individuals who have already lost their jobs because of COVID-19 and its effects on the economy, the stimulus money can be a temporary lifeline to assist with getting your finances back on track. The funds should be used immediately to pay things like rent, mortgages, utility bills, and more.

Build your Emergency Fund

An emergency fund is an amount of money you set aside to cover unexpected expenses or to cover necessary expenses if there are significant changes to your income. How much you need in your emergency fund is unique to you, your family, and your circumstances.

A recent poll showed that only 25% of U.S. adults have emergency savings. When things like the Coronavirus (COVID-19) arise, it makes you aware of why having an emergency fund is so vital for our financial health!

Most of the time, emergency funds are built slowly as specific funds from a budget are set aside and saved. If you don’t have an emergency fund, the stimulus check creates an excellent opportunity to start one. In some instances, it may allow you to instantly fill your emergency fund completely.

Pay off debt

At First Southern National Bank, we'd love to see all of our customers and team members free from the slavery of debt. For those that may not need the stimulus money immediately, the checks could be an opportunity to pay down debt and to minimize the amount of interest accrued.

Pay ahead on bills

With the additional $1,200 that some individuals will be receiving, this could be a good time to see if your budget has room to pay ahead on some bills. With the future more uncertain than normal, it could be an opportunity to pay forward your rent, mortgage, utility bill, or another bill if you become affected financially due to the Coronavirus (COVID-19) down the road.

Local spending to boost economy

As "nonessential businesses" were forced to close throughout Kentucky, supporting local businesses that are hurting from this impact has never been more important. For example, while spending $40 at a local restaurant might not seem like a big deal, it can make a big difference if more people choose to do the same.

Charitable giving

Generosity is one of First Southern National Bank’s core values. Giving is huge for us! We believe in sharing our time, our knowledge, and our resources with others. If you and your family don’t immediately need the money, many charities and organizations have felt the financial impact of the pandemic. Consider giving to a church, an appropriate organization, or families in need directly. Also consider assisting in ways that are not necessarily monetary. We can all do our part while still practicing "social distancing".

While not all details have been released with the federal government approved $2 trillion stimulus package, the latest information can be found at https://www.irs.gov/coronavirus. The IRS asks that instead of calling, that you check their page for updates as no action needed by most people at this time.

For those that did not utilize direct deposit, the Treasury Department plans to develop a web-based portal for individuals to provide their banking information to the IRS online, so that individuals can receive payments immediately as opposed to checks in the mail.


Jenna Walker
Communications Specialist

(606) 365-3555 Ext: 19405
Email: jwalker@fsnb.net