Major banks are due to start delivering $ 1,400 stimulus checks on Wednesday, part of the IRS’s effort to send 100 million checks in the next 10 days. The timing of checks has been a matter of concern for many people who are struggling to pay their bills, as the economy continues to be hampered by the coronavirus pandemic.
The Internal Revenue Service said on Wednesday that it delivered 90 million payments valued at $ 242 billion on its first batch of checks, while another 150,000 checks worth $ 442 million were mailed. On Monday, IRS and Treasury officials said about 100 million checks would be distributed in 10 days.
Some people working at smaller institutions, like the initial bank Current, received payments as early as Friday, the day after President Joe Biden signed the American Rescue Plan in law. These banks used their own balance sheets to credit the money to customers’ accounts, rather than waiting for the fund’s official settlement date, March 17, which was set by the IRS.
This does not mean that all eligible people will receive payments on March 17, as the IRS will distribute the funds in installments, or groups, of payments in the coming weeks. In some cases, some people may also see delays, as in the case of people who submitted paper tax returns. This is because the IRS is basing payments on a person’s most recent tax returns, but continues to support paper-based processing due to the pandemic.
A year after the pandemic paralyzed the United States’ economy, millions of people continue to struggle. About 38% of people said their family income remains affected by the crisis, according to a new study by TransUnion, a financial services company. This represents a significant decline from the previous year, when about 6 out of 10 people said their family income fell, but it continues to show the continuing financial difficulties that many Americans face, said Charlie Wise, head of global research and consultancy at TransUnion.
“It is a material improvement, but it indicates that more than a third of consumers continue to experience some kind of financial impact,” Wise told CBS MoneyWatch. “This is a big deal.”
Certainly, not everyone who is in line to receive a stimulus check has suffered loss of income or job, with about 4 out of 10 people telling TransUnion that their income has not changed during the pandemic.
JPMorgan Chase said on Wednesday that it has posted all payments it has received from the IRS so far. But some Wells Fargo customers complained on social networks that were having trouble logging into their online accounts, adding to the frustration of accessing their funds.
In a note, Wells Fargo said it was working on the problems. “We apologize to our customers who may be having problems with our online banking this morning due to the high volume,” said a spokesman by email. “This does not affect stimulus payments effective March 17, which were credited to the accounts today.”
Here’s what you need to know about the timing of the checks.
Why did some people receive checks before March 17?
As mentioned above, some customers at smaller banks received their checks the day after Mr. Biden signed the indemnity bill. That’s because these banks made the decision to credit the funds to customers’ accounts immediately, using their own balance sheets.
But some larger banks said the timing of payments was beyond their control.
Although the IRS started issuing payments over the weekend, the official payment date was set on March 17, Wells Fargo and JPMorgan Chase said CBS MoneyWatch. Wells Fargo added that he “was not holding the funds” and that he would 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 track when they can receive their stimulus checks.
The IRS created this portal last year for the $ 1,200 stimulus checks directed by the Coronavirus Aid, Relief, and Economic Security, or CARES, Act.
When people go to the “Get My Payment” website to see the new $ 1,400 checks, they will see one of several messages.
First, some people will see that your payment has been processed, along with a payment date and whether the payment will be sent by direct deposit or post. If a check is mailed, the IRS will send a paper check or a prepaid debit card.
Others may see a message stating that they are eligible, but the payment has not been processed and, therefore, there is no payment date 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 could mean a few things, the IRS said. This may indicate that the tax agency did not process your payment or that these people are not eligible for payment, he noted.
What does “Need more information” mean?
Others may see the “Need more information” message, which the tax agency said means that the payment was returned to the IRS because the United States postal service was unable to deliver the check. In that case, people can use the “Get My Payment” website to provide bank information to the IRS.
What if I don’t get the right amount?
Some people can receive their checks quickly, but discover that the payment amount is incorrect – this is probably due to their dependents or changes in income.
The law provides $ 1,400 per adult and dependent, as long as the family income is below the income limit for eligibility. In the current bill, single people with an adjusted gross income of less than $ 75,000 and couples with an income of less than $ 150,000 will receive their full payments, as well as their dependents. Payments decrease for earnings above that, cutting entirely for single people who earn $ 80,000 and $ 160,000 for couples.
But some people may not receive the right amount, especially if they have not yet filed their 2020 tax returns. For example, if a family had a baby last year, but has not yet filed 2020 returns, the IRS would base its payments on returns. 2019 – which would not include your new baby. In that case, the family would receive $ 2,800 for itself, but not the extra $ 1,400 for the child.
The IRS said that people who receive less than they should due to changes in their fiscal situation in 2020 will end up receiving the extra money. When they file the 2020 income tax return, the IRS checks whether they are overdue, 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.