The third stimulus check is already hitting some bank accounts, just days after President Joe Biden U.S. Rescue Law in the law. But while some households will see the funds as early as this week, others may wait longer.
About 85% of people will receive one of the $ 1400 checks, Mr. Biden said on March 12. It is also likely that some problems that stimulated the delivery of some people in the previous two stimulus rounds may cause a recurring situation the third time. . For example, some people who did not have a bank account with the IRS during the previous two rounds of checks had to wait a few weeks for debit cards or paper checks to reach their homes.
It is very likely that people who have submitted their tax returns for 2020 or 2019 and have a bank account with the tax agency will quickly receive their stimulus checks by direct deposit, based on the advance payments. This is because the IRS gives priority to issuing the stimulus money quickly to those he knows can achieve it – and it’s a huge effort, as the tax agency has $ 422 billion in funds to distribute to more than 100 million taxpayers .
About 100 million checks will be issued over the next ten days, according to IRS and Treasury officials at a Monday conference.
“You don’t have to do anything to get your stimulus test,” a TurboTax spokesman told CBS MoneyWatch in an email. “The IRS determines eligibility based on your last tax return (2019 or 2020) and will likely send your payment to the bank account where your tax refund was deposited.”
The TurboTax spokesman added: ‘If you have not yet submitted your 2020 return, you can do so now to provide your most recent information to the IRS, including bank account or address information to ensure your stimulus test is correct place go. “
One financial institution told CBS MoneyWatch that from 12 o’clock EST on March 12, it started receiving payments from the IRS for its customers. The bank, Current, said some accounts received incentive payments up to $ 9,800. He added that he makes all funds fully available by using his balance sheet to credit the funds, rather than waiting by the government for the settlement date of the funds.
Although some payments landed just one day after the bill was signed, according to the legislation, the IRS has until the end of 2021 the checks to distribute it.
This is what can deter some people from receiving their money or receiving the wrong amount.
You have not submitted your tax returns for 2019 or 2020
Many people have probably not yet submitted their tax returns for 2020, as the deadline for submitting your tax forms is April 15th. In that case, there is no need to worry – the IRS will use your tax return for 2019 to determine how much you should receive.
But it is becoming more difficult for people who do not have to file tax returns, such as those with no or very little earnings, which may be the case for some people who work on social security.
This became a problem with the first round of stimulus tests, especially since many of these people were most in need of the first round of $ 1200 payments – and it was no small number. The IRS said it handed out more than 22 million stimulus payments last year that were not based on tax returns.
As a result of the problem, the IRS last year created a website specifically for non-filers, where they could provide their bank account information or addresses to the agency, as well as their number of dependents, each eligible for $ 500 in stimulus assistance. at that point.
But the website for non-applicants has been closed since the end of last year, and IRS and Treasury officials said in a conference call with reporters on March 12 that they were asking non-applicants to file a 2020 tax return to file ensure that they receive all the payments and taxes. credits they owe.
You have submitted a paper return
The IRS warned earlier this year that people submitting paperwork could face delays. This is because the IRS is still dealing with a logjam of tax returns submitted in 2019 – and it is likely that the processing submitted on paper will also experience delays in processing.
The tax agency’s backlog is partly due to the pandemic, which led the IRS to shift its workers to remote work. When that happened, it stored paper tax returns in trailers until it could reach them. At the end of January, it still had 6.7 million yields awaiting processing.
People must file an electronic return by 2020 to ensure faster processing of their taxes, as well as their refunds and stimulus payments, the IRS and Treasury officials said on March 12.
You have moved or changed your bank account
This can be of concern to people who have recently received a check or prepaid debit card, but also to people who have changed their bank accounts.
The IRS said it would open its “Get My Payment” tool on IRS.gov this week. The website is intended to inform people about the status of their payment, but will not allow them to update their bank account information, Treasury and IRS officials said. March 12. However, officials added that the agencies have been working to see if the bank account information they have is correct for consumers.
The downside: if a check is issued to a closed or incorrect account, the IRS must reissue the payment in a check and send it to your home. It can contribute to your waiting.
Your bank’s policy
Some people have expressed frustration on social media that their banks said their checks would only be available on Wednesday, March 17, even though the IRS said payments began to spread over the weekend. Among the banks singled out by angry customers were Wells Fargo and JPMorgan Chase.
However, the delay is due to the time required for the settlement of the funds, according to a statement from Nacha, the organization that manages the ACH network for electronic money transfer.
“Regardless of when payment files were sent and received, the settlement of the funds for the payments will take place on Wednesday, March 17 at 8:30 a.m. EST, exactly as instructed by the IRS,” a spokesman said Monday. “There is no mystery where the money is from the time the first payment file was sent on Friday 12 March until when all recipients will have access to the money on Wednesday – it is still with the government.”
However, some banks may have decided to prepay the money to their customers, which is why some bank customers have already received deposits on 12 March.
Wells Fargo told CBS MoneyWatch it does not hold customers’ funds and will deposit the funds as soon as they have them. A Chase spokesman also said the bank would transfer the funds into customer accounts on Wednesday, when it expects to get the money from the IRS.
“March 17 is the official payment date provided by the IRS when the funds are available, and customers who are eligible to receive a direct deposit of their stimulus payment can expect it on the morning of March 17,” a spokesman said. of Wells Fargo said.
You have new or older dependents
Some people can get their checks quickly, but find that the amounts are wrong – this could very well be due to their dependents.
The third stimulus test gives addicts the right to receive $ 1400 each, but in some cases the IRS may not be aware of your children. For example, if you had a baby in 2020 but have not yet filed your tax return, the IRS will rely on your 2019 tax return to determine how much you owe, which the new child will not show because they do not. born.
Example: A couple with a baby born in 2020 should receive $ 4,200, but if the IRS does not have their tax return for 2020, it will pay $ 2,800 for the two adults in the family. But IRS and Treasury officials said on March 12 that families in this situation can be assured that they will eventually receive the additional $ 1,400 for their baby.
When they file their tax return for 2020, the IRS will look into whether they owe more, 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.
Similar issues may arise for people who do not normally file tax returns, and who last year used the non-filing tool to report their dependents. Because the first two rounds of checks excluded dependents over the age of 17, the IRS did not count older teens and adults dependent on the non-file tool.
People who do not normally file taxes are asked to file a 2020 return this year, the Treasury and the IRS said. This will help the IRS determine if they have dependents who qualify for the third stimulus test. It would also possibly unlock other tax benefits that households would not otherwise have claimed, such as the child tax credit or earnings income, both of which expanded in US rescue plan.
You lost income in 2020, but have not yet submitted a return
Some people may also receive less than what their income dropped in 2020, but they have not yet filed their tax returns for 2020. This could happen to a single person who earned $ 90,000 in 2019, which is higher than $ 80,000 to receive a payment, but lost their job in 2020 and earned only $ 45,000 last year.
If the person has not yet submitted their 2020 return, they will not receive any incentive payment, as the IRS will base its calculation on their 2019 return, which has shown that they are not eligible. But once they file their 2020 tax returns with the lower income, the IRS will issue stimulus payment to them, IRS and Treasury officials said.
–With reporting by Sarah Ewall-Wice.