Many Americans could expect to receive a $1,200 stimulus check within the next three weeks, according to Treasury Secretary Steven Mnuchin. This news comes after the Senate and the House passed a $2 trillion stimulus package to counteract the negative economic impact of the coronavirus pandemic.
President Donald Trump signed the bill into law on Friday, March 27, granting qualifying taxpayers a one-time check up to $1,200 for individuals, depending on your reported income. If you receive a stimulus check, you should use it wisely. One of the options is to pay off credit card debt — but should you?
Below, CNBC Select reviews how much money you can expect to receive from a stimulus check and whether you should use it to pay off credit card debt.
How much money can I expect to get from the stimulus check?
The size of the check you receive is based on 2019 tax returns, if you’ve already filed, otherwise 2018 information is used. Individuals are poised to receive up to $1,200 while couples may get up to $2,400. Parents will receive $500 for every child.
Not everyone will receive a check since the disbursement is based on your adjusted gross income listed on your most recent tax return. If you earn more than $75,000 as an individual, $112,500 as a head of household or $150,000 if you’re married and filing jointly, the amount of those checks starts to get reduced by $5 for every $100 over the threshold.
And once your income reaches the following limits, you can’t expect a check at all: $99,000 for individuals, $146,500 for head of households with one child and $198,000 for joint filers with no children.