One of the pandemic’s outcomes is a college student stimulus check. The arrival of Covid-19 caused the US government to create a variety of relief measures for the country’s citizens.
The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) is a $2.2 trillion economic stimulus bill passed by the 116th United States Congress and signed into law by President Donald Trump on March 27, 2020.
President Joe Biden signed the third stimulus bill into law in March 2021, and this round is open to college students. The colleges’ students were excused from the first two Stimulus Check.
College students may be eligible for up to $1,800 in stimulus funds. Many college students have lost their employment or had their income decreased, necessitating their inclusion in the scheme.
In this article, we are going to give deeper insight that will provide answers to the question, how do college students receive the stimulus check?
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What Is a Stimulus Check?
The US government issues a stimulus check to a taxpayer. Stimulus checks are designed to boost the economy by giving consumers some extra cash.
This money is given to taxpayers in order to stimulate the economy by increasing consumer spending and driving revenue at merchants and manufacturing.
A stimulus check can be part of a broader federal stimulus plan to help the economy, as was the case with the CARES Act in 2020 and the American Rescue Plan in 2021.
What Is A College Student Stimulus Check?
The college student stimulus check for college students is a sort of aid granted by the US government to students during the Covid-19 period.
Many college students lost jobs and lost money as a result of the lockdown, as the majority of them supported themselves through the occupations they had prior to Covid.
Young adults may be eligible for $1,200 from the Affordable Care Act and $600 from the second round of economic impact payments, for a total stimulus of $1,800.
If the student has not been listed as a dependent, the stimulus payment can be claimed in the form of a recovery rebate credit.
This means that if a college student’s parent or guardian submits a claim on their behalf as their dependents, they will not be eligible for the stimulus.
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Do College Students Get A Stimulus Check?
Most college students did not get either the first or second stimulus checks since dependents aged 17 and up did not qualify for a stimulus payment. However, there are two ways for a college student to earn a stimulus check for the third stimulus check.
Dependent: If you are a dependent college student and someone claims you on their tax return, that person may be eligible for a one-time $1,400 stimulus payout. (While this is a one-time stimulus payment, some members of Congress have advocated monthly payments of $2,000 until Covid-19 is ended).
Independent: You may be eligible for a third stimulus check if you are financially independent, which means you provide more than half of your own financial support. Remember that there are income requirements for the third stimulus check, and they apply to college students as well:
Income Thresholds
Individuals: $75,000
Head of Household: $112,500
Married/Joint Filers: $150,000
If you meet the following criteria, you are considered an independent:
- Some college students may have graduated, married, or turned 24 in 2020. If you’ve begun working and/or moved out of your parents’ house, you’re likely to be eligible for a $1,800 stimulus check ($1,200 in the first round and $600 in the second). Because of a lifestyle modification you made between 2019 and 2020, you are qualified.
However, there are certain additional requirements that must be satisfied before you may apply. They are as follows:
- As a single adult, you must earn up to $75,000, or $150,000 as a pair.
- If you have earned more than $99,000 as a single adult or $198,000 as a couple by the first round, you will not be eligible for the stimulus.
Students Who Provide for Themselves But Do not File Tax Returns on a Regular Basis:
This group of students is self-sufficient; they may be under the age of 18, living with their parents, and so on; they fend for themselves and earn less than $12,400.
This group qualifies for a stimulus check but will not receive one since the IRS and Treasury Department do not have an address to send the checks to.
You should contact the IRS to claim your college student stimulus if you don’t file tax returns.
Changing your tax status:
If a student is willing to change their tax status, they may be eligible for the college student stimulus. However, because you have a lot of proofing to do, you should make sure that you are at least partly self-sufficient.
To alter your status, you must be able to demonstrate that you are able to meet at least half of your needs.
Those who live on campuses fall into this group; however, students who stay at home and do not work will find it difficult to persuade the board that they are self-sufficient.
This could end up costing your parents a lot of money in the long run since if they are single and have no additional dependents, they won’t be able to file more tax-friendly returns.
That instance, if your parents file as singles with no dependents, they will owe more than $1,800 in taxes.
How Does Stimulus Check Help College Students
Here are a few benefits of a stimulus check to college students:
1. Get unemployment insurance
According to Georgetown University, approximately 70% of full-time undergraduate students work part-time during their studies.
You may be eligible for unemployment benefits if you are a college student who has lost your full-time or part-time job.
You are eligible for unemployment insurance even if you receive a stimulus payment. To apply, you need to call the unemployment office in your state to learn about the requirements and the amount of unemployment insurance available.
The 2021 American Rescue Plan also includes $300 in weekly unemployment compensation until September 4, 2021.
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2. You may get $300 a month if you have a child
More than a quarter of college students are parents. If you have children, the stimulus package includes a monthly cash allowance of up to $3,600 for youngsters under the age of six.
For children aged 6 to 17, there is also a monthly cash allowance of up to $3,000, which translates to a $250 check.
The prior child tax credit provided a $2,000 annual benefit, whereas the new child allowance provides a monthly check.
While the new stimulus package makes this provision temporary, President Joe Biden wants the $300 monthly stipend for children to become permanent.
3. Get $40 billion of emergency aid from your college
The stimulus package contains $40 billion in college and university financial aid.
Congress intends to support colleges and universities that are struggling financially or don’t have substantial endowments by extending the Higher Education Emergency Relief Fund through September 2023.
The good news for college students is that at least half of the money must be used on emergency, need-based financial help. Student loans, scholarships, and grants, for example, could be used to assist students with tuition and housing costs.
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4. Get more financial aid
Not only has the Covid-19 pandemic impacted wages, but also student loans and financial aid.
You can adjust your income on the Free Application for Federal Student Aid if your financial circumstances have changed as a result of the Covid-19 epidemic (FAFSA). Here’s how to keep track of your earnings:
- Login to FAFSA at fafsa.ed.gov
- Select “Make FAFSA Correction”
- Update your income
You should also recertify your income if you’re paying off student loans and are on an income-driven repayment plan. You may be eligible for a lower monthly student loan payment if your income has decreased as a result of the Covid-19 epidemic.
How To Get A College Student Stimulus Check?
Before you apply for a stimulus check, you should speak with your parents or guardians. You may require the funds, but it does not preclude your parents from providing them to you when you are claimed as a dependent.
If you become self-sufficient, your parents or guardians will lose the opportunity to pay lower taxes in the future since they will no longer have a child to claim as a dependent.
So, have a conversation, and when you’ve reached an agreement on how to apply for the check, go to the IRS and file your tax information from the previous year.
After you’ve filled out the form and double-checked that your account number and email are correct, the IRS will take care of the rest by depositing the funds into your account or mailing you a check-in equivalent amount.
It’s not a big deal; make sure your tax information is correct. Even if you owe taxes, you will be eligible for the check if you submit all of the essential information and paperwork for tax filing.
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Are Stimulus Checks Repaid?
A stimulus is a type of tax return that is given in advance. It was enacted to compensate for the loss of revenue caused by the lockdown.
It isn’t a loan at all. It’s also worth noting that stimulus isn’t taxable. The stimulus you receive will not be taxed. Only earnings and lottery winnings are subject to taxation.
How College Students Can Use The Stimulus Check
There are no restrictions on how a stimulus check can be used. It can be spent, saved, or even used toward retirement planning.
Arvind Ven, an independent financial counselor and the CEO of Capital V Group, recommends students put their surplus money into their future investments.
Every student’s financial position, however, is unique. Paying monthly payments, reducing existing student debt, and increasing savings could all be good uses of your stimulus funds.
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College Student Stimulus Payment: How To Track Your Stimulus Payment
There’s always the chance that your stimulus is still on its way; various things could have caused it to be delayed. Use the IRS’ “Get My Payment” tracker to see if your stimulus is on its way.
You’ll be able to follow both the $1,200 and $600 payments, as well as the method by which the cheques were issued – direct deposit or mail.
Conclusion
Because the stimulus has no repayment period and is also non-taxable, it provides an alternative source of funds for self-supporting college students. If the parent declares their college student as a dependant on their tax returns, they may be eligible for the fee.
For tax refunds, checks are either mailed to the address on your IRS document or deposited into your bank account. You might want to check with the IRS to see if you’re eligible.
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Frequently Asked Questions
The check will be mailed to you in the same manner as your IRS return. If you do not have a direct deposit account set up, your check will be mailed to the address listed on your most recent tax return.
The deposit will not go through if the bank account information on your return is incorrect. The IRS will mail your check to the address listed on your most recent tax return if this occurs.
Yes. You’ll need a Social Security Number (SSN) or a Taxpayer Identification Number (TIN).
Yes, as long as you match the aforementioned criteria.
