Haven’t you received your second relief check yet? You are not alone.
Although the IRS and the Treasury distributed most of the $ 164 million foreseen in the second round of relief payments to Americans faster than the first time, millions have not yet received payments or have encountered problems with distribution.
The latest payments of $ 600 per eligible adult and dependents are sorely needed among many who are struggling financially due to the pandemic.
Here’s what someone waiting for a payment should know.
WHY DID I NOT RECEIVE THE PAYMENT?
First, make sure that you are eligible. Under this latest round of relief, payments of $ 600 will go to individuals who earn less than $ 75,000 or $ 150,000 to couples who are married and are going through the process together. Whoever wins more wins a reduced value. There are no payments for individuals who earn more than $ 99,000 a year.
Unlike last time, however, payments will not be denied to Americans who are married to someone without a Social Security number.
If you are eligible, check the IRS Get My Payment tool on your website to find out the status of your payment.
As in the last round, most payments will be automatic and made through direct deposit to bank accounts.
However, some people may find that they received payment in a different way this time. Payments are made by direct deposit or by post, by check or debit card.
It also looks like there was a lot of confusion this time, for people who filed their taxes with an online tax preparation service, such as TurboTax or H&R Block, and paid their tax preparation fees with the expected refund. In such cases, the IRS website may show that the money went to an account that they do not recognize. This is because the money may have been sent to a temporary bank account established by the tax preparer, who is no longer active.
By law, the financial institution must return the money to the government if the account is closed or is no longer active. Several taxpayers vented online about their frustration with the situation, including many who received their payments easily the first time.
The National Consumer Law Center estimates that up to 20 million Americans may be affected by this latest administrative problem.
“It is disappointing that the IRS has not corrected this problem, which he has known for months,” said Lauren Saunders, associate director of the National Consumer Law Center. “People who need money now may have to wait months before they can file a tax return and get their refund, unless tax preparation companies are able to forward the funds.”
HOW LONG IS IT GOING TO TAKE?
The IRS and the Treasury started distributing payments last week. By law, they have until January 15 to make payments.
Payments made by direct deposit can take a few days to process, but the funds were widely available earlier this week. Payments sent by mail can take three to four weeks to reach people. The Treasury announced Thursday that it has started sending about 8 million Economic Impact Payments by prepaid debit card. Taxpayers are encouraged to closely monitor their correspondence for the arrival of checks or debit cards.
People who did not receive the first or second round of payments due or received an incorrect amount can claim the Recovery Discount Credit on their 2020 tax return to receive payment.
WHEN DOES THE TAX STATION START?
The IRS has not stated when it will begin accepting tax returns for this filing season, but the tax season usually begins in late January. Some tax reporting services will allow customers to do so before that date.
Filing electronically is the fastest and safest way to process a return. In the past, the IRS issued refunds in less than 21 days from the date the return was received.
WHY AM I RECEIVING AN ERROR MESSAGE ON THE IRS WEBSITE?
The Get My Payment tool is useful, but it can be difficult to understand.
Do not be alarmed if you receive the message “please wait”, which is a normal part of the operation of the website. If you receive the message “Payment status # 2 – Not available”, you will not receive the payment and will need to claim it instead on your income tax return.
It is updated only once a day, so checking it multiple times can be useless. In addition, it can block users if it is accessed many times; this is designed to prevent fraud.