Free Consultation: 858.450.1040 Payment | Client Login

MENUMENU
  • EDD
  • IRS
    • IRS Notices – What They Mean
  • About Us
    • MEET THE TEAM
    • PRACTICE AREAS
    • CONTACT US
  • TAX LAW & EDD RESOURCES
    • SMALL BUSINESS OWNERS TAX LAW GUIDE
    • EDD & IRS AUDITS
    • CRIMINAL TAX
    • SAN DIEGO TAX ATTORNEY
    • Orange County Tax Attorney Services
    • TAX BALANCE
    • INNOCENT SPOUSE RELIEF
    • OTHER TAX LAW MATTERS
    • SALES TAX AUDITS
    • UNFILED TAX RETURNS
    • OFFERS IN COMPROMISE
    • CALIFORNIA INCOME TAXES
    • INTERNATIONAL TAX
    • TAX COLLECTIONS
    • CORPORATE | BUSINESS TAX
    • PAYROLL TAX AUDITS
    • TAX LEIN
    • FAQs
  • SBA Loan Resources
    • PPP FORGIVENESS DENIAL APPEAL
    • SBA Criminal Defense
    • FAQs
  • RESOURCES
    • Blog
    • VIDEO LIBRARY
Home > Blog > How people are spending their stimulus checks

How people are spending their stimulus checks

June 27, 2020

By now, many people have received the $1,200 check allocated to tax-paying individuals as a part of the coronavirus relief package that was passed by Congress in March. Despite the initial excitement expressed by many Americans, the shifting economy and its impact on our financial situations mean this money will likely be spent on one thing: paying off bills.

"I had a $500 propane bill. I had an electric bill. I had a car insurance bill. A health insurance bill. And uh did I mention the cell phone bill?," said Lisa Cutler, a jeweler who sells her goods at craft fairs throughout New England.

Many of those events Cutler usually attends have been canceled because of the pandemic. But her bills haven't.

"The money was spent before the ink dried on the check — $1,200 didn't even cover it," Cutler said. "But it was like, OK, I can make a dent in these. And, you know, thanks. When's the next one coming?"

This is not an uncommon occurrence, no matter where you are located in the country. Thousands of small businesses have been forced to shut their doors without even attempting to make the necessary adjustments caused by the coronavirus outbreak. Those who have survived had to be creative in the way they spent their stimulus checks and other loans provided by the government. 

Hourly workers whose paychecks have stopped arriving are amongst the people most affected by the economic shutdown — and those who are most dependent on the $1,200 provided by our government.

"Because I'm a massage therapist — and I think it will be one of the last businesses that will not only be opened back up but really make a comeback — I plan on just putting it aside for my next quarter's real estate taxes because I don't know how long it will be before I'm working again," Colette Cipullo, of Gloucester, said.

The federal relief money is meant to help alleviate at least some of the pain of the pandemic. Some people who aren’t experiencing pain are donating their money.

"I don't really need it," said Spenser Duehr, a health care IT consultant. "Fortunately, I still have my job and it pays well. So, I don't really consider myself someone who needs some of the relief funds."

No matter what you do or where you live, it is safe to assume that your life has been impacted by the COVID-19 pandemic. As we all navigate a new sense of normal, it’s important to consider the possibility that our financial situation will change significantly. Our recommendation? Use your stimulus checks and other relief-focused funds carefully in order to give yourself the cushion necessary to prepare for the future. 

Filed Under: Blog, COVID-19, News Tagged With: Accounting, COVID-19, Economy, Tax Preparation

Archives

Search

Categories

Questions About
Tax Audit/Controversies?

A representative will be in contact within 1 business day
PRIVACY POLICY

Get Monthly Updates on Important Tax Law Matters



Milikowsky Tax Law is located at: 4250 Executive Square, Ste. 650, La Jolla, CA 92037
o. (858) 450-1040 | m. (858) 212-0542 |
Privacy Policy

DISCLAIMER:
The information on this website is for general information purposes only. Nothing on this site should be taken as legal advice for any individual case or situation. This information is not intended to create, and receipt or viewing does not constitute, an attorney-client relationship.

Milikowsky Tax Law © All Rights Reserved. Clear1099.com | Cal1099.com | California1099.com © All Rights Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Cookie settingsACCEPT
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT