The IRS says it has so far distributed about 127 million of the third pandemic stimulus checks, worth up to $ 1,400 each. The tax agency says Americans received about $ 325 billion in direct aid payments from the $ 1.9 trillion COVID bailout package that President Joe Biden signed earlier this month.
But none of that means much if you’re still waiting for your money – and are eager to use it to pay bills, reduce your debt, save or invest.
What happened to your stimulus check? Here are eight potential reasons for your frustrating delay.
1. Stimulus checks are coming out in ‘batches’
The IRS is currently in a colossal process of multitasking – right down to the eyes, both in tax returns and in the millions of stimulus checks.
Instead of being overwhelmed and risking creating a huge backlog of payments, the tax agency chose to deliver the stimulus funds in batches.
The second batch, totaling $ 83 billion, began to reach Americans on March 19. This latest wave of payments includes approximately 17 million direct deposits, plus 15 million paper checks and 5 million debit cards that need to be mailed. And it takes even more time.
2. Retired? Bureaucracy hindered your payment
As of Friday, 30 million low-income Americans receiving social security or other federal retirement benefits had yet to receive their stimulus checks.
The Social Security Administration should share its information with the IRS, so that Social Security people can receive their relief money. But, according to media reports, this transfer between agencies did not happen until Thursday, after public pressure from members of Congress.
So the IRS now has what it needs, but it is unclear how long it will take for payments to reach the millions of Social Security beneficiaries who are left behind.
3. You moved or changed your bank account
Change can be a busy time. Notifying the IRS of your new whereabouts may not have been at the top of your priority list when you were packing, but if you have not yet updated your address with the agency, it will send your check to where you used to send your tax refund.
And if the IRS actually sent your payment to an old address, the check will need to be reissued. Which will mean a longer wait.
Or, if you recently changed your bank account, the IRS will not have your new account information on file until you provide it. When you are scheduled to receive a direct deposit and the IRS does not know where to send it, you will have to wait for a check or debit card to appear in the mail. And it can take weeks.
4. A debt collector stole your money
If you have not seen the stimulus money, it may mean that someone else has not defeated you. The previous two relief payments were prohibited for debt collectors, but not the most recent.
Because Biden’s relief bill passed Congress through a complicated budget process, a legislative loophole allows creditors to adorn their stimulus check. Money can be confiscated to pay off various types of debts, although they are not tax debts or alimony.
If you are at risk of missing the stimulus payment because of overwhelming debt, a lower interest debt consolidation loan can help you better control what you owe – and pay it off faster.
5. You are receiving a check or debit card
Americans in line for direct deposits will almost certainly receive their payments before they receive debit cards or good old paper checks, which can take weeks to reach their intended recipients.
Not sure how your payment will be distributed? You can use the IRS “Get my payment” tool to see how your money is being delivered and if it was sent.
If the inspectors arrested you for receiving a check or debit card, be careful not to accidentally throw away the IRS envelope. When the first $ 1,200 stimulus checks were issued last year, some recipients mistook their checks or debit cards for junk mail – and threw them away.
6. You did not file a tax return last year – or the year before
Not everyone is required to file a federal income tax every year. For example, if someone earns less than $ 12,400 a year, has no additional income from self-employment, is single and is under 65, there is no need to file an income tax return for 2020.
But if you haven’t entered the IRS books recently and you are not a beneficiary of Social Security or railroad retirement, the tax agency will not have a record of your eligibility for the stimulus check.
You can use a reliable tax software program to get on the IRS radar. When you have money coming in, it’s not a bad place to be.
7. You are no longer eligible for a stimulus check
After already spending trillions of dollars to support the US economy during COVID-19, Congress took a more measured approach in debating what should be included in this latest round of stimulus.
This time, individuals who earn more than $ 80,000 and couples who earn more than $ 160,000 receive bupkus. Eligibility is based on adjusted gross income, which is a family’s taxable income before subtracting the standard deduction or detailed deductions.
The previous limits for obtaining a stimulus check were $ 100,000 for single contributors and $ 200,000 for couples filing a joint application.
What if your money is missing – and you need it now?
If it looks like your stimulus check will be delayed, or if the new income guidelines mean there will be no money for you, there are several options if you seriously need $ 1,400 today.
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Reduce your insurance bills. Car insurers have been offering discounts to drivers who are less on the road due to the pandemic. Isn’t it yours? It looks like it’s time to look for a better deal from a more flexible supplier. And while you’re at it, you can save hundreds of dollars on home insurance by comparing rates to find a lower price.
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Reduce your mortgage payment through refinancing. Mortgage rates remain historically low and refinancing the existing mortgage can yield big savings. Mortgage data and technology provider Black Knight reports that 11.1 million homeowners are still good candidates for refinancing, meaning they could cut their monthly payments by hundreds of dollars with a new loan.
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Reduce your budget and “make your own” stimulus check. By finding some creative ways to cut back, you can reorganize your budget to find another $ 1,400. Use a cloth instead of paper napkins, refill water bottles instead of buying bottled water, and use your own cup of coffee to get a discount at the local cafe. Do you have a hobby or special talent? Turn it into a secondary income. And download a free browser extension that will automatically search for better prices and coupons when you shop online.