Major banks are expected to begin issuing $ 1,400 stimulus checks on Wednesday, part of the IRS’s effort to send 100 million checks over the next 10 days. The timing of the checks has been a matter of concern for many people who are struggling with bills as the economy continues Coronavirus pandemic.
The Internal Revenue Service said Wednesday it delivered 90 million payments valued at $ 242 billion in its first batch of checks, while another 150,000 checks worth about $ 442 million were mailed. On Monday, IRS and Treasury officials said about 100 million checks would be distributed within ten days.
Some people who bank in smaller institutions, such as the current startup bank, had already received payments on Friday, a day after President Joe Biden signed the American Rescue Plan in law. These banks had used their own balance sheets to pay the money into customers ’accounts instead of waiting for the fund’s official liquidation date of March 17, which was set by the IRS.
This is not to say that all eligible people will receive payments on March 17, however, as the IRS will distribute the funds in installments or groups of payments over the next few weeks. In some cases, some people may see it too delays, as in the case of people who filed paper statements. This is because the IRS bases payments on a person’s most recent tax returns, but continues to be backed up with paper form processes due to the pandemic.
A year after the pandemic shut down the U.S. economy, millions of people continue to experience hardship. According to a new study by TransUnion, a financial services company, about 38% of people said household incomes remain affected by the crisis. This represents a significant decline from the previous year, when about 6 out of 10 people said their family income had been successful, but that it continues to show the ongoing financial struggles facing many Americans, Charlie said Wise, head of global research and consulting at TransUnion. .
“It’s a material improvement, but it indicates that more than a third of consumers still feel some sort of financial impact,” Wise told CBS MoneyWatch. “That’s a great thing.”
Of course, not everyone who is online to receive a stimulus check has suffered either income or job loss, with approximately 4 out of 10 people telling TransUnion that their income did not change during the pandemic.
JPMorgan Chase said Wednesday it has released all payments it has received from the IRS so far. But some Wells Fargo customers complained on social media who had difficulty logging into their online accounts, which aggravated their frustration with accessing their funds.
In a statement, Wells Fargo said he is working on the issues. “We apologize to our customers who may be having issues with our online banking this morning due to the high volumes,” a spokesman said in an email. “This does not affect the March 17 incentive payments that have been credited to the accounts today.”
This is what you need to know about the timing of the checks.
Why did some people receive checks before March 17th?
As mentioned above, some customers of the smaller banks received their checks as soon as a day after Mr. Biden signed the relief law. This is because these banks made the decision to pay the funds into customers ’accounts immediately using their own balance sheet.
But some larger banks said the timing of payments was 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 he said CBS MoneyWatch. Wells Fargo added that he “does not withhold funds” and will deposit the money into accounts on Wednesday morning.
Can I track my payment?
The IRS reopened its “Get My Payment” website after the approval of the American Rescue Plan, allowing people to keep track of when they might receive their stimulus checks.
The IRS created this portal last year for the $ 1,200 stimulus checks led by the Coronavirus Aid, Relief and Safety Act or CARES.
When users check the “Get My Payment” site for 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 by mail. If a check is mailed, the IRS will send a paper check or a prepaid debit card.
Other people may see a message stating that they are eligible, but the payment has not been processed and therefore no payment date is available.
“Payment status not available”: what does it mean?
Another group of people may receive a message that says “Payment status not available.”
That message can mean a couple of things, the IRS said. He noted that it may indicate that the tax agency has not processed your payment or that these people are not eligible for payment.
What does “Need more information” mean?
Other people may see a “Need more information” message, which the tax agency said means payment was returned to the IRS because the U.S. Postal Service was unable to deliver the check. In this case, people can use the “Get My Payment” site to provide the IRS with bank information.
What if I didn’t get the right amount?
Some people may receive their checks quickly, even if they find that the amount of the payment is incorrect, which could probably be due to their dependents or changes in income.
The law provides for $ 1,400 per adult and per dependent, as long as household income falls below the income threshold for eligibility. On the current bill, single people whose adjusted gross income was less than $ 75,000 and married couples with an income of less than $ 150,000 will receive their full payments, as well as their dependents. Payments decrease for incomes above this, being completely reduced to single people earning $ 80,000 and $ 160,000 to married couples.
But some people may not get the right amount, especially if they have not yet filed their 2020 tax return. For example, if a family had a baby last year but has not yet filed their 2020 tax returns, the ‘The IRS would base its payments on 2019 statements, which would not include your new baby. In this case, the family would receive $ 2,800 for themselves, but not the additional $ 1,400 for their child.
The IRS said people who earn 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 return, the IRS will check if they owe them 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.