Major banks began delivering $ 1,400 stimulus checks this week, 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 with accounts, as the economy continues to be hampered by the coronavirus pandemic.
The IRS 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 March 15, IRS and Treasury officials said that about 100 million checks would be distributed in 10 days.
Some people working at smaller institutions, such as the initial bank Current, had already received payments on March 12, the day after President Joe Biden signed the bill. 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 received their 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 it could happen for people who submitted paper tax returns. This is because the IRS is basing payments on the most recent tax returns of a person who remains supported with the processing of paper forms 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 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 ongoing 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 in 10 people telling TransUnion that their income has not changed during the pandemic. They are likely to build their personal savings or spend the money, stimulating the American economy as a whole.
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.
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 had difficulty logging into their online accounts, adding to the frustration of accessing their funds.
Wells Fargo said he “was not holding the funds” and that he deposited the money in accounts on Wednesday morning. The bank said it was working on the login problem, which it later reported having fixed the same day. “We apologize to our customers who may be experiencing problems with our online banking this morning due to the high volume,” a spokesman for Wells Fargo said in an email. “This does not affect stimulus payments effective March 17, which were 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 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”: huh?
Another group of people may receive a message that says “Payment status not available”. That message could mean a few things, said the IRS. This may indicate that the tax agency has not processed your payment or that these people are not eligible for payment, he noted.
What does “I need more information” mean?
Others may see the “I need more information” message, which, according to the tax agency, means that the payment was returned to the IRS because the United States Post Office was unable to deliver the check. In that case, people can use the “Get my payment” website to provide the IRS with bank information – but the tax agency said that only people who receive the “I need more information” message will be able to add their bank information to the portal.
Why can’t I access the “Get my payment” website?
The IRS said this could happen if people do not provide security responses that match the information from the tax agency over several login attempts. The IRS asks for personal information, such as Social Security number, date of birth and address.
“If you cannot verify your identity, you will not be able to use Get My Payment,” said the IRS. “Do not contact the IRS for help with a lock; IRS assistants cannot unlock your account.”
However, the website will allow you to try again after 24 hours.
My address has changed – how can I inform the IRS?
Many people moved in 2020, which means that if you are one of those who expect to receive a check in the mail or a prepaid debit card, you may be concerned about the payment that comes to you.
Unfortunately, the IRS website “Get My Payment” does not allow people to update their addresses. Instead, the IRS is urging people to file their 2020 tax returns with their current address.
However, given that the 2020 tax filing deadline was postponed to May 17 since its typical April 15 cut, there are probably millions of people who have not yet completed their tax forms and are unlikely to do so before the IRS distributes most of their checks.
The IRS said that payments that cannot be delivered to qualified people will be returned to the tax agency. If this happens, the IRS website “Get My Payment” will display the message “Need More Information”, which will allow you to enter direct deposit information or request that the stimulus check be delivered to a prepaid debit card.
What if the IRS has the wrong bank account?
Unfortunately, the IRS says that you cannot change the bank account registered for you – unless you receive the message “Need more information”. The IRS is initially relying on bank account information that people provide in a variety of ways: your 2020 tax return, your 2019 tax return if the 2020 tax return has not yet been completed, information you provided to the IRS in “Get My Payment “website last year or information you entered through the” Non-filer “portal last year.
It will also rely on federal agencies, such as the Social Security Administration or Veterans Affairs, to obtain bank account information for people receiving benefits through these agencies.
So, what happens if your bank account has changed since you provided this information to the IRS? The bad news is that it may take you a while to receive your funds – but you will eventually receive them, the IRS insists. The agency said that payments that are sent to accounts that have been closed will be returned to the tax agency. At that point, the IRS will send a payment by paper check or prepaid debit card to your mailing address.
What if I don’t get the right amount?
Some people may receive their checks quickly, but find that the payment amount is incorrect – this may be 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 eventually receive 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.