Stimulus checks and direct deposit: when and how you can sign up for payment to be sent to your bank

This week, the IRS sent $ 242 billion directly to the bank accounts of those who made direct deposits with the federal government. If you qualify for the third check there’s a good chance your money will have arrived in your bank account. But the IRS did not do that and said it will make more payments in the coming weeks to banks and the mail, as paper checks and EIP Cards. If the IRS has not your bank information, is it too late to provide it? The answer is yes and no.

You have a good reason to want your payment to go directly to your bank account: With first two rounds of payments, the IRS and the US Treasury prioritized payments to people with direct deposit information on file, and Congress commissioned them to do the same with the third check. (Here it is how to calculate your new payment.) So, what happens if you go qualified for a check but you don’t have direct deposit set up?

How first check, the IRS allows you to add bank information through its Get My Payment tool. For the second check, the agency did not accept new or updated direct deposit information. How third stimulus check now leaving, here’s everything you should know about direct deposit payments and what you can and cannot do. This story has been updated with new information.

Will the IRS allow me to apply to receive the third payment as a direct deposit?

yea. In certain situations.

First, if you signed up for direct deposit when submitting your federal taxes this year, you can receive your third payment sent to your bank. Some people are reporting that the IRS used the bank information provided in this year’s tax to send the third payment.

Then, if you check the IRS, receive my payment to get the status of your payment and you see a “Need more information” message, it means that your payment was returned to the IRS because the post office was unable to deliver it. If this is your situation, you can have the IRS reissue your payment as a direct deposit by providing a routing and account number for your bank account in the tool. The IRS said that you should see this message and provide your bank information two to three weeks after your payment is returned to the IRS.

However, you cannot set up direct deposit in the tool without first having your payment returned. For the first check, the IRS allowed those who was eligible add direct deposit details to receive your payments directly into your bank accounts. The IRS deactivated the direct deposit registration feature on May 15, 2020 and did not activate it again for second checks, when the agency had just over two weeks to complete payments.

This time, the IRS said it “will use the data already in its systems to send payments for the third stimulus. Contributors with the direct deposit information on file will get paid that way. Those ones without current direct deposit information on file will be paid by check or debit card by mail. ”

Why should I use direct deposit to get stimulus check money?

More than 75% of the first round of payments and more than 80% of the second round of payments were distributed through direct deposit. During the first round of stimulus checks, the IRS encouraged people who had no direct deposit on file at the agency to apply for direct deposit in any way. The agency said that these people can still receive their checks faster, even if they register “late”, compared to waiting for a check sent by mail.

What information does the IRS need to set up a new direct deposit account?

If the IRS accepts new bank information for the third check through your Get My Payment tool, you will want to have your bank account type, routing and account numbers at hand. You have several ways to find this bank information.

Banking website: Your bank’s website can show your routing and account numbers. Log in to the account you want to use and look for the numbers you need.

Banking application: If your bank has an application, it can show your account and routing numbers. In the app, touch the account you want to use to see the account and routing numbers.

Printed check: At the bottom of the check, you will probably see three sets of numbers: The first set of nine numbers is your routing number. The second set of 8 to 12 numbers is your account number. The third set is one that you do not need for direct deposit, as it is the individual check number.

Check this IRS page for more help in locating your routing and account numbers.

Am I guaranteed to receive my stimulus check through direct deposit?

If you already have a direct deposit set up with the IRS, the agency said it will use that information to make your payment. For the first and second checks, however, some reported having received their payments by mail, either as a Paper, checked or an EIP card, even if the IRS had your bank details. The vast majority of the first and second payments were made by electronic transfer. You may track your payment using the IRS payment status tool.

If you needed some motivation to submit your tax returns in advance, the IRS has said it will use its most recent federal tax forms that will be processed when determining the amount of the third payment. If you included your bank information when you placed your order, the IRS can use it when submitting your payment. It is a bet that the IRS will have processed your new order by the time it reaches your name, but it is still a possibility.

What if there is a problem with direct deposit?

This can happen. With previous payments, the IRS experienced trouble sending stimulus payments to millions of people that use tax preparation software like TurboTax and Jackson Hewitt. Now that the IRS is sending the third checks in the middle of the tax season, this can become a problem again.

How would the IRS have obtained my bank details for the third check?

The IRS has several ways to find your bank information:

• You filed an income tax return in 2019 or 2020 and received a refund for direct deposit.
• You have already filled out your tax forms this year and provided the IRS with your bank information.
• You registered your bank information for your first check using the IRS Get My Payment online tool.
• You provided bank information through the Non-Filers tool: Enter your payment information here if you don’t usually file taxes.
• From another federal agency that issues benefits to you, such as Social Security Administration, Veterans Affairs, or Railroad Retirement Council.

What will happen if my bank details are changed to direct deposit?

With the first stimulus checks, you can use the Get My Payment and Non-Filers tools to provide the IRS with your bank information. The IRS said, however, that it does not allow people to change direct deposit information to a stimulus payment that it has on file. This is a protection against fraud.

With the second check, the IRS did not accept new or changed bank information. If the IRS attempts to make a payment to a closed bank account, the financial institution must return the payment to the IRS, the agency said.

This time, if your bank information is invalid or the account has been closed, the bank will return your payment to the IRS and the agency will send it to you by check at the address it has on file, the IRS said.

If you have moved, you can provide the IRS your new mailing address.

Do I need to have a bank account to receive my check by direct deposit?

According to the Urban Institute, people with bank accounts and direct deposits (which are disproportionately white) were more likely to receive their first stimulus check by the end of May than people who identify themselves as black or Hispanic or who are below the age of 18. poverty line. This was directly linked to groups most likely to have bank accounts and who submitted this information to the IRS to facilitate direct deposit tax returns.

Bank of America, JPMorgan Chase, Wells Fargo and several other large banks now offer more affordable bank accounts without checks as part of a program to make it easier for people to obtain bank accounts.

To learn more about checks, this is where the The IRS will begin sending the third checkshow much could you qualify with this payment It is like track your payment with the IRS.

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