The stimulus package is geared at assisting the masses through a form of tax break. My question is how does this help people when they owe the IRS and the incentive is acknowledged (the persons qualify for the incentive) but the IRS does not give the person the incentive? Instead it applies that money to the amounts owed to them. How is this benefiting the people again?

For one thing it will credit toward what he owes so that
For example say he owes $1,400. And what he would receive this tax year is say $450. The IRS takes the $450. Then he only owes $950. Which may not sound like much of a consolation prize in black and white but owing the IRS less in the long run is well worth it.