Major banks began issuing $ 1,400 in stimulus checks this week as part of the IRS’s effort to send 100 million checks in the next 10 days. The timing of controls is a concern for many people struggling with bills as the economy continues to be hampered by the corona pandemic
The Internal Revenue Service said on Wednesday that it had made 90 million payments worth $ 242 billion in its first batch of checks, while another 150,000 checks worth about $ 442 million were mailed. On MARCH 15, IRS and Treasury officials said approximately 100 million checks would be issued within 10 days.
Some people who bank with smaller institutions, such as the start-up bank Current, had already received payments on March 12, a day after President Joe Biden American rescue plan in the law. Those banks had used their own balance sheets to credit customers’ accounts instead of waiting for the official March 17 settlement date set by the IRS.
However, that doesn’t mean all eligible people received their payments on March 17, as the IRS will divide the funds into installments or groups of payments over the next few weeks. In a few cases, some people can also see it delays, as can happen for people who have filed paper tax returns. That’s because the IRS bases the payments on a person’s most recent tax return left over backed up processing paper forms because of the pandemic.
A year after the pandemic brought the US economy to a halt, millions of people continue to struggle. According to a survey by TransUnion, a financial services company, about 38% of people said their family income is still affected by the crisis. That’s a significant drop from a year earlier, when about 6 in 10 people said their family income had taken a hit, but it continues to show the ongoing struggles many Americans face, said Charlie Wise, head of global research and research. advice at TransUnion.
“It’s a significant improvement, but it indicates that more than a third of consumers are still feeling some sort of financial impact,” Wise told CBS MoneyWatch. “That’s a big deal.”
Certainly, not everyone who qualifies for a stimulus check has suffered loss of income or job losses. About 4 in 10 people told TransUnion that their income did not change during the pandemic. They are likely to build up their personal savings or spend the money to boost the wider US economy.
Here’s what you need to know about the timing of the controls.
Why did some people get checks before March 17?
As mentioned above, some smaller bank customers received their checks just one day after Mr. Biden signed the bill. That’s because those banks made the decision to immediately credit the money to customers’ accounts by using their own balance sheets.
But some larger banks said the timing of the payments was beyond their control. Although the IRS began issuing payments over the weekend, the official payment date was set for March 17, Wells Fargo and JPMorgan Chase told CBS MoneyWatch.
JPMorgan Chase said on Wednesday that it had posted all payments it has received from the IRS to date. But some Wells Fargo customers complained on social media that they had difficulties logging into their online accounts, adding to their frustration about accessing their money.
Wells Fargo said it was “not holding the money” and had deposited the money into accounts Wednesday morning. The bank said it was working on the login issue, which it resolved later the same day. “We apologize to our customers who may be having problems with our online banking this morning due to the high volumes,” a Wells Fargo spokesperson said in an email. “This will not affect promotional payments as of March 17 that were credited to accounts today.”
Can I track my payment?
The IRS reopened its “Get My Payment” website following the approval of the US bailout, allowing people to track when they received their incentive checks.
The IRS created this portal last year for the $ 1,200 stimulus checks led by the Coronavirus Aid, Relief and Economic Security, or CARES, Act.
When people visit the “Get My Payment” site for the new $ 1,400 checks, they will see one of several messages.
First, some people will see that their payment has been processed, along with a payment date, and whether the payment is sent via direct deposit or mail. If a check is mailed, the IRS will send a paper check or prepaid debit card.
Others may see an eligibility message, but their payment has not been processed, so no payment date is available.
“Payment status not available”: Huh?
Another group of people may receive a message that says “Payment status not available.” That message could mean a number of things, the IRS said. It could indicate that the tax authorities have not processed your payment or that those people are not eligible for payment, it noted.
What does “need more information” mean?
Others may see a “more information needed” message, which, according to the IRS, means that the payment was returned to the IRS because the US Postal Service was unable to deliver the check. In that case, people can use the ‘Get My Payment’ site to provide the IRS with bank details, but the IRS said only people who ‘need more information’ message can add their bank details to the portal. .
Why can’t I get to the “Get My Payment” site?
The IRS said this could happen if people fail to provide security answers that match the information provided by the IRS over the course of several login attempts. The IRS asks for personal information such as a social security number, date of birth, and address.
“If you can’t verify your identity, you can’t use Get My Payment,” the IRS said. “Do not contact the IRS for lockout assistance; IRS assistants cannot unlock your account.”
However, the site allows you to try again after 24 hours.
My address has changed – how can I tell the IRS?
A lot of people moved in 2020, which means if you’re one of those expecting a check or prepaid debit card sent by mail, you might be concerned about the payment reaching you.
Unfortunately, the IRS’s “Get My Payment” site does not allow people to update their addresses. Instead, the IRS is urging people to file their 2020 tax returns with their current address.
However, given the 2020 tax filing deadline has been postponed to May 17th As of the typical April 15th close, there are likely millions of people who have not yet filed their tax forms and are unlikely to do so until the IRS issues most of its checks.
The IRS said payments that cannot be delivered to eligible people will be returned to the tax authorities. When that happens, the IRS’s “Get My Payment” site will show you a “Need More Information” message, which allows you to enter information about direct deposits or request that the stimulus check be delivered to a prepaid debit card.
What if the IRS has the wrong bank account?
Unfortunately, the IRS says you can’t change the bank account it registered for you – unless you get the “More Information Needed” message. The IRS initially relies on bank account information that people have provided to them in a variety of ways: their 2020 tax returns, their 2019 tax returns if their 2020 returns have not yet been filed, information you provided to the IRS on the “Get My Payment site last year or information you entered through the “Non-filer” portal last year.
It will also use federal agencies such as the Social Security Administration or Veterans Affairs to get bank account information for people receiving benefits through those agencies.
So what if your bank account has changed since you provided that information to the IRS? The bad news is, you may find yourself delayed in getting your money, but you will eventually get them, the IRS points out. The agency said payments sent to accounts that have been closed will be returned to the tax authorities. At that point, the IRS will send a payment by paper check or prepaid debit card to your mailing address.
What should I do if I have not received the correct amount?
Some people may get their checks quickly but find that the payment amount is wrong – that could be due to their family members or changes in income.
The law provides for $ 1,400 per adult and dependent, as long as family income is below the income threshold to qualify. Under the current bill, single people with adjusted gross income less than $ 75,000 and married couples with income less than $ 150,000 will receive their full benefits, as well as their family members. Payments decrease for income above that, and are cut off completely for singles earning $ 80,000 and $ 160,000 for married couples.
But some people may not get the right amount, especially if they haven’t filed their 2020 tax returns yet. For example, if a family gave birth to a baby last year but hasn’t yet filed their 2020 tax return, the IRS would base their payments on their 2019 proceeds – and that doesn’t apply to their new baby. In that case, the family would receive $ 2,800 for themselves, but not the additional $ 1,400 for their child.
The IRS said people who are paid less than they should receive due to changes in their tax situation in 2020 will eventually receive the extra money. When they file their 2020 tax returns, the IRS checks to see if they owe more, as in the case of a baby born last year. If that happens, the IRS will automatically issue the additional $ 1,400 check to the family, officials said.