You're set to receive $1,200 from the coronavirus relief bill. Here's how to make the most of it.

The recent $2 trillion CARES Act includes direct payments to individuals, designed to ease financial burdens. Eligible taxpayers can receive up to $1,200, couples can get $2,400, and families earn $500 per child. Additionally, unemployment benefits have been extended to freelancers and gig workers who previously lacked access.

Funds from this stimulus package are also directed toward businesses, with $100 billion for hospitals, $350 billion for small businesses, $500 billion for larger corporations, and $150 billion allocated to state and local governments.

Will You Receive a $1,200 Check?

Here's how the disbursement of payments works and the eligibility criteria:

  • Individuals earning up to $75,000 annually will receive a $1,200 check.
  • Couples earning up to $150,000 will get $2,400.
  • Families receive an extra $500 for each child.
  • For individuals earning over $75,000, payment amounts will decrease, phasing out entirely for those making over $99,000 and couples exceeding $198,000.
  • Heads of household can receive the full payment if their income was $112,500 or less in 2019.

Your payment amount is based on the adjusted gross income reported on your 2019 tax return or 2018 return if you haven't filed yet. Those not required to file, such as low-income individuals and certain Social Security recipients, will receive payments via the same method as their benefits, provided they meet income limits.

Use the coronavirus check calculator to find out how much you'll receive. Keep in mind that for individuals, the payment decreases by $5 for every $100 earned over the $75,000 threshold.

Unfortunately, college students often miss out. Many remain dependents on their parents' taxes, disqualifying them from receiving their own checks.

When Can You Expect Your Stimulus Check?

The IRS will launch a portal later this month for those without their bank details on file. Check the IRS Coronavirus Tax Relief portal for updates.

Smart Ways to Use Your Potential Windfall

If you're still earning a steady income, consider using your $1,200 check to enhance your financial stability. You could also set aside some funds to assist those struggling during this time. Here are some prudent ways to allocate this money:

Boost your emergency fund. If the pandemic has taught us anything, it's the importance of having an emergency fund. Deposit your check into a high-yield savings account for peace of mind down the road.

SAVINGS: Open a CIT Bank Money Market account and earn 1.80% APY. Check site for full terms.

Reduce high-interest debt. This is a great opportunity to pay down debts with high-interest rates. You've received free money, so why not use it to start fresh?

Contribute to retirement savings. If you're not maximizing your 401(k) contributions to receive employer matching, now's the time to start. That's essentially free money. Once you reach your match goal, consider funding a Roth IRA as a backup emergency fund.

Invest in the market. The classic advice still rings true: buy low, sell high. This is an excellent moment to invest in stocks, benefiting you in the long run and supporting market stability.

Support local businesses. Many small businesses are struggling despite relief efforts. Choose wisely where to spend: order takeout from local restaurants or buy goods from your favorite shops. You can also use part of your funds to purchase gift cards for later use, helping these businesses survive.

Give to charity. Numerous organizations are in dire need of financial support right now, including the American Red Cross and Feeding America. Your donations can significantly impact their efforts. Visit Charity Navigator for ratings on charities focusing on COVID-19 relief.