Governments all over the world have offered financial assistance to help alleviate the economic impact of the COVID-19 outbreak. In the United States, the government has issued stimulus checks as well as disaster relief payments.
These two sorts of payments, however, are not the same. Disaster relief and stimulus cheques are two distinct types of financial assistance with distinct aims.
Stimulus Check Vs. Disaster Relief
Stimulus checks, also known as economic effect payments, are payments made to eligible individuals by the US government to help stimulate the economy during times of economic uncertainty.
The payments, which have been distributed throughout the COVID-19 epidemic to help people and families cope with the financial impact of the pandemic, are often based on a person’s tax filing status and income level.
Disaster distributions, on the other hand, are government payments made to persons and organizations affected by natural disasters such as hurricanes, wildfires, and floods.
These monies are intended to help pay for urgent losses and expenses incurred as a result of the disaster, such as house repairs or temporary housing.
Although both forms of funding are intended to assist those in financial need, they are offered through different channels and have different eligibility restrictions.
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Income Requirements
Normally, the Internal Revenue Service (IRS) distributes stimulus checks, while the Federal Emergency Management Agency (FEMA) provides disaster help in partnership with state and local governments. It’s important to remember that not everyone is eligible for both types of compensation.
To get a stimulus check, individuals must meet certain income limits and file a tax return whereas disaster distributions are generally only available to those who have suffered property damage or other damages as a result of a natural disaster, individuals must fulfill specific income restrictions and file a tax return in order to get a stimulus check.
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