Major banks have begun issuing 1,400 stimulus checks. 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 had 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 March 15, 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 March 12, 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 their payments on March 17, however, since the IRS will distribute the funds in tranches or groups of payments over the next few weeks. In some cases, some people may see it too delays, as could happen to people who filed paper tax returns. This is because the IRS bases payments on a person’s most recent tax returns backup with processing paper forms 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 study by TransUnion, a financial services company, about 38% of people said that household income is still affected by the crisis. This represents a significant decline from a year earlier, when about 6 in 10 people said their family income had been successful, but that it continues to show the ongoing struggles facing many Americans, Charlie Wise said. 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 loss of income or employment, with approximately 4 out of 10 people telling TransUnion that their income did not change during the pandemic. They will likely generate their personal savings or spend the money, stimulating the wider American economy.
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 smaller banks received their checks as soon as a day after Mr. Biden signed the bill. 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.
JPMorgan Chase said Wednesday it had released all payments it has received from the IRS so far. But some Wells Fargo customers complained on social media who experienced difficulty logging into their online accounts, which added to their frustration with accessing their funds.
Wells Fargo said he “did not have the funds” and that he deposited the money into accounts on Wednesday morning. The bank said it was working on the login problem, which it later said it solved that same day. “We apologize to our customers who may be having issues with our online banking this morning due to the high volumes,” a Wells Fargo spokesman said in an email. “This does not affect the March 17 incentive payments that have been credited to the accounts today.”
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 controls run by the Coronavirus Aid, Relief and Economic Security Act or CARES.
When people check out the “Get My Payment” site for new $ 1,400 checks, they’ll see one of several posts.
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”: eh?
Another group of people may receive a message saying “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 for more information” message, which according to the tax agency means the 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 banking information to the IRS, but the tax agency said only people who receive the message “need more information” will be able to add their information. banking on the portal.
Why can’t I enter the “Get my payment” site?
The IRS said this can happen if people do not provide security responses that match the tax agency’s information during several login attempts. The IRS requests 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 help with a lock; IRS wizards cannot unlock your account.”
However, the site will allow you to try again after 24 hours.
My address has changed. How can I report this to the IRS?
A lot of people moved in 2020, which means that if you’re one of those people waiting for a check sent in the mail or a prepaid debit card, you might be worried about payment coming in.
Unfortunately, the IRS’s “Get Paid” site does not allow users 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 the 2020 statements has been postponed until May 17th since its April 15 typical deadline, there are likely to be millions of people who have not yet filed their tax forms and will not do so before the IRS distributes most of their checks.
The IRS said payments that cannot be delivered to eligible individuals will be returned to the tax agency. If this happens, the IRS’s “Get My Payment” site will show you a “Need more information” message, allowing you to enter direct deposit information or request that the incentive check be delivered with a prepaid debit card . .
What if the IRS has an incorrect bank account?
Unfortunately, the IRS says you cannot change the bank account you have registered unless you get the message “Need more information.” Initially, the IRS relied on bank account information that people gave it through several ways: the 2020 tax return, the 2019 tax return if the 2020 return has not yet been filed , information you gave to the IRS in the “Get My Payment” section last year, or information you entered through the “No Files” portal last year.
It will also take advantage of federal agencies, such as the Social Security Administration or Veterans Affairs, to obtain bank account information from people who receive benefits through those agencies.
So what if your bank account changed since you provided this information to the IRS? The bad news is that you may be late in getting your funds, but you will eventually get them, the IRS insists. The agency said payments sent to closed accounts will be returned to the tax agency. At this time, the IRS will send a payment by paper check or prepaid debit card to your mailing address.
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, as it could 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. Under the current bill, single people whose adjusted gross income was less than $ 75,000 and married couples under $ 150,000 will receive their full payments, as well as their dependents. Payments decrease for incomes above this, being totally 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 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.