We have all hear of IRS stimulus checks, but what are they really? Well, the Economic Stimulus Act was enacted as of 2008 as a precautionary measure against any form of economic recession that the United States may suffer. Part of the Act stated clearly that the IRS was to send Stimulus Checks to all tax-paying Americans. This distribution of this money was done under the authority of President George W. Bush and was to be spent as soon as possible so that the economy would be replenished. These IRS stimulus checks can be considered as tax rebates, and were different in terms of value. The earnings of a taxpayer in the previous fiscal year determined how much was to be given to him or her.
With the coming of 2008, the future of the economy was seen as weak by a variety of economic experts who injected ideas about mortgage crisis and recession fears into the minds of Americans everywhere. This was why Congress decided to pass the Economic Stimulus Act of 2008. The signing was done by the President around February and IRS stimulus checks were sent to taxpayers soon afterwards.
If the eligible receiver was an individual, then they received IRS stimulus checks amounting between $300 and $600 USD. However, married couples received IRS stimulus checks that were no less than $600 or more than $1200 USD. The IRS made it clear that these rebates would not adversely affect the tax returns for the year. While the checks helped the economy a little bit, the economy continued to witness a steep decline as the year came to a close.
Social security numbers were replaced with Individual taxpayer identification numbers (ITIN), according to an added amendment so that illegal aliens would not receive these checks. This affected not only illegal immigrants, but military families residing abroad as well.