The Numbers Behind the Stimulus Checks: A Detailed Analysis
The Numbers Behind the Stimulus: A Detailed Analysis (How Are Americans Using Their Stimulus Payments?)
The CARES Act, 2020 Relief and 2021 Rescue Plan provided critical financial relief to millions of Americans through stimulus checks, with over totaling $800 billion distributed.
Statistics About Stimulus Checks
First Round (March 2020): Over $271 billion distributed to approximately 162 million Americans.
Second Round (December 2020)(Consolidated Appropriations Act): Over $142 billion distributed to about 147 million Americans.
Third Round (March 2021)(American Rescue Plan Act of 2021) : Over $401 billion distributed to about 167 million Americans.
1. CARES Act (March 2020)
Stimulus Check Amount:
1,200 per individual or 2,400 per married couple.
$500 per dependent child under 17.
Total Distributed:
Over $271 billion.
Number of Payments:
Approximately 162 million Americans.
Average Payment:
Around $1,700 (including dependents).
2-Consolidated Appropriations Act (December 2020)
Stimulus Check Amount:
600 per individual or 1,200 per married couple.
$600 per dependent child under 17.
Total Distributed:
Over $142 billion.
Number of Payments:
Approximately 147 million Americans.
Average Payment:
Around $600.
3. American Rescue Plan Act (March 2021)
Stimulus Check Amount:
1,400 per individual or 2,800 per married couple.
$1,400 per dependent (including adult dependents).
Total Distributed:
Over $401 billion.
Number of Payments:
Approximately 167 million Americans.
Average Payment:
Around $1,400.
Source:https://www.irs.gov/pub/irs-soi/21in01eip3dec.xls How Are Americans Using Their Stimulus Payments?
Surveys and studies have examined how recipients utilized these funds:
Household Expenses: A significant portion of recipients used their stimulus payments for essential needs. The U.S. Census Bureau reported that the majority of adults in households receiving stimulus checks used them primarily for household expenses.
Debt Repayment and Savings: Many individuals allocated funds toward debt reduction and savings. The National Bureau of Economic Research found that, on average, U.S. households spent approximately 40% of their stimulus checks, saved about 30%, and used the remaining 30% to pay down debt.
These findings suggest that while stimulus payments provided immediate financial relief for essential needs, a considerable portion was also directed toward debt reduction and savings, reflecting varied financial strategies among different income groups.
How Stimulus Checks Were Distributed?
1. Direct Deposit:
The IRS deposited the funds directly into recipients' bank accounts.
2. Paper Checks:
IRS issued paper checks.
3. Prepaid Debit Cards:
To expedite payments and reach individuals without bank accounts, the IRS sent prepaid debit cards, known as Economic Impact Payment (EIP) cards.
These Visa-branded cards were issued by MetaBank®, N.A., and sent in white envelopes bearing the U.S. Department of the Treasury seal.
Where are the statistics ?
The below line items are the ones established during that time for those types of payments within the DTS (See Table IV - Income tax Refunds Issued).
IRS - Advanced Child Tax Credit (Checks)
IRS - Advanced Child Tax Credit (EFT)
IRS - Economic Impact Payments (Checks)
IRS - Economic Impact Payments (EFT)
IRS Tax Refunds Business (Checks)
IRS Tax Refunds Business (EFT)
IRS Tax Refunds Individual (Checks)
IRS Tax Refunds Individual (EFT)
Please note that these are no longer published with the current version of the DTS. These values are available in the DTS from Feb. 2020 - Feb. 2023.
Within the MTS please see the 'Other' line item below the Internal Revenue Service of the Department of the Treasury within Table 5 - Outlays of the U.S. Government.
Engin Yılmaz
Sources:
https://www.crfb.org/papers/cost-trump-and-biden-covid-response-plans
https://www.covidmoneytracker.org/