Difference Between Stimulus Check and Income (With Table)

Stimulus check and income might be related to each other but are not close. Income, as anyone can say, is a fixed source of money you get by providing a service or selling a product. Stimulus check is something different to it. It is closely related to something that mostly contributes directly to the economy of a country.

It is basically a check that is sent to a person who regularly submits their tax or even who is eligible to pay a tax in the USA. The check is sent by the U.S. government itself to the person.

Stimulus Check vs Income

The difference between Stimulus Check and Income is that income is the amount of money that is equivalent to the service or the goods that an individual has to provide to the other person, while a stimulus check is a check of some amount that the U.S. government pays to the taxpayer of their country.

Stimulus checks are basically intended for the motive of stimulating the economy of the country by giving them some amount of money to spend on themselves, and this is why they are called stimulus checks, i.e. to stimulate the economy. All the country’s taxpayers receive this check to boost consumption and drive a regular amount of revenue from the retailers and the manufacturers. 

Income can be the money or the equivalent value of a service or a good provided by an individual or a business group. Basically, it is a part of an exchange service for some goods or services. It is basically used for funding expenditures of day-to-day and another course. For most people across the world, it is often received in the form of salary or wages.

Comparison Table Between Stimulus Check and Income

Parameters of ComparisonStimulus CheckIncome
What are they?A stimulus check is basically a check that is sent to a person who regularly submits their tax or even who is eligible to pay a tax in the USA.Income is the amount of money equivalent to the service or the goods that an individual has provided to the other person.
PaymentIt can either be mailed directly to the taxpayer, or it can be applied to their filing of tax in an equivalent credit of the tax.The income from the businesses can be referred to as the company’s remaining revenues that are left after the payment of all the taxes and other payments.
Governing bodiesThe check can not be a part of another federal stimulus package that is being designed to support the economy.Most of the forms of these incomes are always subjected to paying taxes for the local, state, or even federal government.
EconomyThe check can not be a part of another federal stimulus package that is being designed to support the economy.Income might be or might not affect a country’s economy directly, but it is an indirect way of supporting it.
UsesAll the country’s taxpayers receive this check to boost consumption and drive a regular amount of revenue from the retailers and the manufacturers.It is basically used for funding expenditures of day-to-day and another course. For most people across the world, it is often received in the form of salary or wages.

What is Stimulus Check?

Stimulus checks are basically intended for the motive of stimulating the economy of the country by giving them some amount of money to spend on themselves, and this is why they are called stimulus checks, i.e. to stimulate the economy. All the country’s taxpayers receive this check to boost consumption and drive a regular amount of revenue from the retailers and the manufacturers. 

The check can not be a part of another federal stimulus package that is being designed to support the economy. The checks can be paid in any possible way, they can either be mailed directly to the taxpayer, or they can be applied to their filing of tax in an equivalent credit of the tax. These checks were highly used during the period of the great recession in 2008. 

What is Income?

Income can be the money or the equivalent value of a service or e good provided by an individual or a business group. Basically, it is a part of an exchange service for some goods or services. It is basically used for funding expenditures of day-to-day and another course. For most people across the world, it is often received in the form of salary or wages.

Other sources of income are pensions, return on investments, social security, etc. these are primarily the source of income for retirees. The income from the businesses can be referred to as the company’s remaining revenues that are left after the payment of all the taxes and other payments. This is the case where income is termed as earnings. Most of the forms of these incomes are always subjected to paying taxes for the local, state, or even federal government.

Main Differences Between Stimulus Check and Income

  1. The main difference between stimulus check and income is that a Stimulus check is basically a check that is sent to a person who regularly submits their tax or even who is eligible to pay a tax in the USA, while Income is the amount of money that is equivalent to the service or the goods that an individual has to provide to the other person.
  2. Stimulus check can either be mailed directly to the taxpayer, or it can be applied to their filing of tax in an equivalent credit of the tax, while the income from the businesses can be referred to as the company’s remaining revenues that are left after the payment of all the taxes and other payments.
  3. The check can not be a part of another federal stimulus package that is being designed to support the economy, but most of the forms of these incomes are always subjected to paying taxes for the local, state or even federal government.
  4. The check can not be a part of another federal stimulus package that is being designed to support the economy, whereas Income might be or might not affect the economy of a country directly, but it is an indirect way of supporting it.
  5. All the taxpayers of that country receive this check to boost the consumption and drive a regular amount of revenue from the retailers and the manufacturers, while income is basically used for funding expenditures of day-to-day and for another course. For most people across the world, it is often received in the form of salary or wages.

Conclusion

It now concludes that Stimulus Check and Income are closely related to each other in a way that if a person has a regular income, then only he/she can pay their taxes, and the stimulus check is only provided to the taxpayers by the U.S. government. The check can not be a part of another federal stimulus package that is being designed to support the economy. These checks were highly used during the period of the great recession in 2008. 

References

  1. https://www.nber.org/papers/w27097
  2. https://www.aeaweb.org/articles?id=10.1257/mac.6.4.84
x
2D vs 3D