The big banks have started issuing 1,400 incentive checks. The timing of the checks has been a matter of concern for many people struggling with bills as the economy remains hampered by coronavirus pandemic.
The domestic revenue service said Wednesday it had delivered $ 90 million worth $ 242 billion in its first batch of checks, while another $ 150,000 worth about $ 442 million had been mailed. On March 15, IRS and Treasury officials said about 100 million checks would be distributed within 10 days.
Some people who bank at smaller institutions, such as the current startup bank, have been receiving payments since March 12, a day after President Joe Biden signed American rescue plan in law. These banks used their own balance sheets to credit the money in customer accounts, rather than wait for the official settlement date of March 17, set by the IRS.
This does not mean that all eligible individuals received payments on March 17, however, given that the IRS will distribute the funds in installments or groups of payments over the next few weeks. In some cases, some people may see as well delays, as may be the case for persons who have submitted tax returns on paper. That’s because the IRS bases payments on a person’s most recent tax returns backed up with processing paper forms due to the pandemic.
One year after the pandemic shut down the US economy, millions of people continue to face difficulties. About 38 percent of people say their household incomes remain affected by the crisis, according to a study by TransUnion, a financial services firm. This is a significant drop from a year earlier, when about 6 out of 10 people said their household income had hit, but it continues to show the ongoing struggles facing many Americans, Charlie Wise said. , head of global research and consultancy at TransUnion.
“It’s a material improvement, but it indicates that more than a third of consumers continue to feel some kind of financial impact,” Wise told CBS MoneyWatch. – That’s a great thing.
Certainly not everyone who is in turn receiving a stimulus check suffered loss of income or jobs, with about 4 in 10 people telling TransUnion that their income did not change during the pandemic. They will probably build their personal savings or spend their money, stimulating the wider American economy.
Here’s what you need to know about checking.
Why did some people receive checks before March 17?
As mentioned above, some customers of smaller banks received checks immediately one day after Mr Biden signed the law on the aid project. This is because those banks decided to credit the funds to customers’ accounts immediately, using their own balance sheets.
But some larger banks have said that the timing of payments is out of 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 said CBS MoneyWatch.
JPMorgan Chase said Wednesday that it has posted all the payments it has received from the IRS so far. But some Wells Fargo customers complained on social networks that they had difficulty connecting to their online accounts, increasing their frustration with accessing their funds.
Wells Fargo said he “does not have the funds” and that he deposited the money in the accounts on Wednesday morning. The bank said it was working on the connection issue, which it later said it had fixed the same day. “We apologize to our customers who may have problems with our online banking this morning due to the high volumes,” a Wells Fargo spokesman said in an email. “This does not affect incentive payments as of March 17, which were credited to accounts today.”
Can I track my payment?
The IRS has reopened its “Get My Payment” website following the adoption of the American Rescue Plan, allowing people to track when they could receive incentive checks.
The IRS created this portal last year for $ 1,200 incentive checks under the Coronavirus Aid, Relief and Economic Security Act, or CARES, Act.
When people check the “Get My Payment” website for the new $ 1,400 checks, they’ll 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 will be sent by direct deposit or mail. If a check is mailed, the IRS will send either a paper check or a prepaid debit card.
Others may see a message that they are eligible, but their payment has not been processed and therefore there is no payment date available.
“Payment status not available”: Huh?
Another group of people may receive a message that says “Payment status is not available.” This message can mean several things, the IRS said. It could indicate that the tax agency will either not process the payment or that those individuals are not eligible for payment, she said.
What does “more information need” mean?
Others may see a message “they need more information”, about which the tax agency said that the payment was returned to the IRS because the US Postal Service could not deliver the check. In this case, people can use the “Get My Payment” website to provide banking information to the IRS – but the tax agency said that only people who receive the message “need more information” will be able to add their banking information on portal.
Why can’t I go to the “Get my pay” site?
The IRS said this could happen if people did not provide security responses that matched the tax agency’s information during several connection attempts. The IRS requires personal information, such as a social security number, date of birth and address.
“If you can’t verify your identity, you won’t be able to use Get My Payment,” the IRS said. “Do not contact the IRS for assistance with a lock; IRS assistants cannot unlock your account.”
However, the site will allow you to try again after 24 hours.
My address has changed – how can I tell the IRS?
Many people have moved in 2020, which means that if you’re one of those waiting for a check sent or a prepaid debit card, you may be worried about the payment that will reach you.
Unfortunately, the IRS “Get My Payment” website does not allow people to update their addresses. Instead, the IRS urges people to file 2020 tax returns with their current address.
However, given that the deadline for filing tax returns in 2020 was pushed back on May 17th since its typical April 15 cut, there are probably millions of people who have not yet filed their tax forms and are not likely to do so before the IRS distributes most of its checks.
The IRS said payments that cannot be delivered to eligible individuals will be returned to the tax agency. If this happens, the “Get My Payment” IRS website will display a “You need more information” message, which will then allow you to enter direct deposit information or request delivery of the incentive check on a debit card. prepaid debit. .
Will the IRS recharge a prepaid debit card?
Some people who have received one or both of the first two incentive payments on a prepaid debit card may wonder if the IRS will recharge that card with $ 1,400 for the last round of payments. The answer is no, says the IRS.
If the IRS now has bank account information for you, it will send the money by direct deposit. Otherwise, it will issue either a check or a prepaid debit card, but the latter will come in the form of a new card, the tax agency said.
People should look for a white envelope with the return address “Economic Impact Payment Card”, accompanied by a seal of the US Treasury Department. The card says “Visa” on the front and the issuing bank, MetaBank, on the back.
What happens if the IRS has the wrong bank account?
Unfortunately, the IRS says you can’t change the bank account it records – unless you get the message “You need more information.” The IRS initially relies on bank account information that people have provided in a variety of ways: the 2020 tax return, the 2019 tax return if the 2020 return is not yet filed, information you provided to the IRS in ” Get my payment ”site last year or the information you entered through the“ Non-filer ”portal last year.
It will also reach out to federal agencies, such as the Social Security Administration or Veterans Affairs, to obtain bank account information for people who receive benefits through these agencies.
So what happens if your bank account has changed since you provided this information to the IRS? The bad news is that you may be late in getting the funds – but eventually you will get them, the IRS insists. The agency said that payments that are sent to accounts that have been closed will be returned to the tax agency. At that time, the IRS will send a payment by check on paper or prepaid debit card to your mailing address.
What if I didn’t get the right amount?
Some people can receive their checks quickly, but find that the amount of the payment is incorrect – which could be caused by their dependents or changes in income.
The law provides $ 1,400 per adult and dependent, as long as the household income falls below the eligibility income threshold. Under the current bill, single people whose adjusted gross income was less than $ 75,000 and married couples with incomes below $ 150,000 will receive full payments, as well as dependents. Payments decrease for earnings greater than these, completely reducing single people earning $ 80,000 and $ 160,000 for married couples.
But some people may not receive the right amount, especially if they have not yet filed their tax returns for 2020. For example, if a family had a child last year but has not yet filed their 2020 returns, The IRS would base its payments on 2019 statements – which would not include their new child. In this case, the family would receive $ 2,800 for themselves, but not $ 1,400 extra for their child.
The IRS said that people who are paid less than they should receive because of changes in their tax situation in 2020 will eventually receive the extra money. When filing their tax return for 2020, the IRS will check if they are owed more, such as the case of a child born last year. If that happens, the IRS will automatically issue the additional $ 1,400 check to the family, officials said.