In this state of uncertainty we’re in, a financial expert weighs in on what would be the smartest thing to do with your stimulus check
SAN DIEGO — Many receiving a $600 stimulus check soon will need to use that money to buy essentials and pay the bills. For those who used credit cards this holiday season, here’s some advice from a local certified financial planner.
“Good advice is get ahead of those debts and utilize those monies to pay down some of those high interest rate credit cards so purchases don’t cost more than they should,” said Casey Broach, Daca Financial Services.
For this second round of payments under the CARES Act, individuals making $75,000 a year or less will get $600. Couples making $150,000 a year or less will get $1,200.
“Once your income gets above that, your benefits get reduced,” said Broach.
Those who qualify and have dependent children, 16-years-old and younger, will receive an additional $600 for each child.
Broach says if you are fortunate enough to have money left over after taking care of your needs, then save it or invest it.
“To have a little more cushion is not going to hurt us, if anything it will help you sleep a little better at night,” said Broach.
If you can, use your “stimulus” money to help stimulate the economy.
“To spend it at small local business is a great idea,” said Broach.
Also, if you use it for a charitable contribution before January 1 that may be tax deductible.
“Whose to say we don’t loop that money into these organizations that are on the ground helping San Diego and provide a tax break on money that in essence if free,” said Broach.
If you didn’t file a tax return and didn’t register with the irs.gov non-filers tool, you are still eligible for a payment if you meet the eligibility requirement. While you won’t receive an automatic payment now, you can still claim the equivalent recovery rebate credit when you file your 2020 federal income tax return.