Welcome to Stimulus Check 2011

Welcome to the Stimulus-Check–2011.com, your number-one online stimulus check guide to helping millions of Americans answer the question: “Where’s my economic stimulus check?”

Notwithstanding everyone’s literally lining up to get their stimulus check, one wonders if there is enough money in President Barak Obama’ monetary stimulus package to go around. The stimulus plan unveiled by President Obama in 2009, promised each taxpayer a tax rebate check of $600 to $1200.

With the first set of checks reportedly mailed out in early May, 2010, no one seems interested in anything else. “And the only persons who are entitled to receiving their stimulus check this year,” said Arbel of Stimulus-check-2011.com, “are those who have filed their 2009 taxes returns.”

Among the millions the federal government is expecting to receive submissions from will include those in the lower income bracket, especially men and women on Social Security. Added to this are disabled veterans, which were not required to file a tax return.

The President Obama’s stimulus package, designed to inject $75 billion into the economy into the economy over the short-term, promised to provide:

• … $250 tax cut for workers and their families.

• … temporary $250 bonus to seniors in their Social Security checks.

• … relief to homeowners hit by the housing crisis.

• … aid to states hardest-hit by the housing crisis to avoid a slash in services.

• … increase and expand unemployment Insurance.

“Naturally, the government will be expecting those who have received their stimulus check to use it at your preferred retailer so as to help resuscitate the economy generally,” said [Insert Your Name], adding that returns of a minimum of $3,000, will be given a taxes refund of approximately $600 for individual, and $1,200 for those who file jointly. Those with dependent children will also be automatically qualified for an additional $300 for each child.

Overall, the main purpose of these types of stimulus checks is meant to give a kick-start to an ailing economy, still reeling from the effects of the economic and financial meltdown. The idea is to give everyone a check with the hope of them patronizing their favourite retail store.

The History of the Stimulus Check

In between 2007 and 2008, the federal government under President George W. Bush took steps to stimulate the economy by provided stimulus checks to the general population. Since that time, there have been multiple versions of the stimulus approach, some providing direct funds and others providing lower payroll taxes. All were intended get people to spend money, and in turn businesses would begin to grow again thereby pushing the economy.

2008

The initial stimulus check that started the whole process was created to reward working people producing any income more than $3,000 in a tax year. The final version authorized was expanded to include retirees as well since it was thought to be unfair to exclude them. Each eligible adult received $600 and each under age child counted for another $300. Technically, the money was an advance on any tax refund owed by the federal government for the 2008 tax year. If taxes were owed, however, then the recipient had to pay the money back on April 15th, 2009. All eligible recipients had to first file a tax return, however, to receive a payment.

2009

Some folks didn’t file or claim their stimulus check. As a result, they became eligible for a similar payment in 2009. This was delivered in the form of a tax credit on 2009 tax returns. Those eligible were anyone who received government benefits or qualified as a low-income worker. Again, the payment levels were $600 to $300, depending on adults and children involved. Again, a 2009 tax return was required to receive the tax credit.

For new stimulus in the same year, the American Recovery and Reinvestment Act pushed by President Obama and Congress provided a $250 per person payment to those on social security, military retirement, and government railroad retirement benefits. For those who were working in 2009, instead they were provided a stimulus payment via lower payroll withholding rates. Each working individual became eligible to receive a $400 reduction in federal withholding rates to their paycheck. Those who were legally married received a benefit up to $800. In practice, unfortunately, the effect had no real stimulus because over 12 months it amounted to a $20 savings per month. This was not nearly enough to create any kind of meaningful purchasing power.

2010

While the President’s Administration proposed a repeat of the $250 check for mainly retirees on government benefits, the provision did not see the light of day for 2010. Instead, working people again saw the same federal tax withholding reduction in their paychecks. Those low-income persons who had little work on no employment at all were able to claim the benefit as a tax credit when filing their 2010 tax return. Again, the total annual amount equaled $400 per individual and $800 for a married couple.

2011 and Forward

For the next year the title was changed on the payroll withholding reduction program but the concept was the same: reduce taxes paid outright by a worker. The new title of the program was dubbed the “payroll tax holiday.” No actual checks were provided to anyone by the federal government in 2011.

For 2012, the federal government seems to be held on the need to keep the payroll withholding rates low, at least until the economy gets better. Again, however, the real buying power of the credit is minimal. Because most people don’t actually sit and put aside $20 every month, there’s still no actually purchasing of durable goods, the kind of products that give steam to the economy. So, unfortunately, the current stimulus continues to be that in name only. Again, no federal stimulus checks are to be issued in 2012.