Large banks are expected to deliver $ 1,400 stimulus checks on Wednesday, as part of the IRS’s effort to send 100 million checks over the next ten days. The timing of the checks was very worrying for many people struggling with bills as the economy was still weakened by the coronavirus pandemic.
The Internal Revenue Service said on Wednesday that it had made 90 million payments worth $ 242 billion in its first check, while another 150,000 checks worth about $ 442 million were sent by mail. On Monday, IRS and Treasury officials said about 100 million checks would be distributed within ten days.
Some people who bank at smaller institutions, such as the start-up bank Current, have already received Friday, one day after President Joe Biden US rescue plan in the law. The banks used their own balance sheets to credit the money in customer accounts rather than waiting for the official fund settlement date of March 17, set by the IRS.
This does not mean that all eligible people will receive the payments on March 17, as the IRS will distribute the funds over the next few weeks in parts or groups. In some cases, some people may even see it delays, as in the case of people who have filed paper tax returns. This is because the IRS bases the payments on a person’s most recent tax returns, but because of the pandemic, it is backed up by processing paper forms.
One year after the pandemic shut down the US economy, millions of people continue to suffer. About 38% of people said their household income was still affected by the crisis, according to a new study by TransUnion, a financial services firm. This represents a significant decrease compared to a year earlier, when about 6 out of ten people said that their household income had suffered a blow, but it still shows the ongoing financial struggle that many Americans are facing, said Charlie Wise, head of transUnion global research and advice, said. .
“This is a significant improvement, but it indicates that more than one-third of consumers have some kind of financial impact,” Wise told CBS MoneyWatch. “It’s a big deal.”
To be sure, not everyone who wants to receive a stimulus test has suffered income or job loss, and about 4 in ten people told TransUnion that their income did not change during the pandemic.
JPMorgan Chase said on Wednesday it had posted all the payments it had received from the IRS so far. But some Wells Fargo customers complained on social media that they are having trouble logging in to their online accounts, which increases their frustration over access to their funds.
In a statement, Wells Fargo said he was working on the issues. “We apologize to our customers who are experiencing problems with our online banking services this morning due to the high volumes,” a spokesman said in an email. “It does not affect any March 17 stimulus payments credited to accounts today.”
Here’s what you need to know about the timing of checks.
Why did some people get checks before March 17th?
As mentioned above, some customers at smaller banks received their checks as soon as a day after Mr. Pray that signed the bill. This is because the banks made the decision to credit the funds immediately to their accounts using their own balance sheets.
But some larger banks said the timing of the payments was beyond their control.
Although the IRS began issuing payments over the weekend, the official payment date was set for March 17, Wells Fargo and JPMorgan Chase. tell CBS MoneyWatch. Wells Fargo added that he ‘does not own the funds’ and that it will pour the money into accounts on Wednesday morning.
Can I track my payment?
The IRS reopened its Get My Payment website following the adoption of the US rescue plan, which enables people to track down when they can receive their stimulus checks.
The IRS created this portal last year for the $ 1,200 stimulus tests conducted by the Coronavirus Aid, Relief, and Economic Security, or CARES, Act.
If people on the “Get My Payment” website look for the new $ 1400 checks, they will see one of the different messages.
First, some people will see that their payment has been processed, along with a payment date and whether the payment will be sent by direct deposit or by mail. If a check is mailed, the IRS will send a paper check or a prepaid debit card.
Others may see a message that they are eligible, but their payment has not been processed and therefore no payment date is available.
“Payment status not available”: what does it mean?
Another group of people may receive a message titled “Payment status unavailable.”
The message could mean a few things, the IRS said. This may indicate that the tax agency did not process your payment, or that people are not eligible for payment.
What does ‘More information needed’ mean?
Others may see the message “Need more information,” which according to the tax agency means the payment was returned to the IRS because the U.S. Postal Service could not deliver the check. In that case, people can use the “Get My Payment” website to provide the IRS banking information.
What if I did not get the right amount?
Some people can get their checks quickly, but discover that the payment amount is wrong – this may be due to their dependents or changes in income.
The law provides for $ 1,400 per adult and dependent, as long as household income falls below the income threshold. In the current account, singles with an adjusted gross income of less than $ 75,000 and married couples with an income of less than $ 150,000 will receive their full payments, as well as their dependents. Payments fall for the earnings above, which are cut off entirely for single people earning $ 80,000 and $ 160,000 for married couples.
But some people may not get the right amount, especially if they have not yet filed their tax returns for 2020. For example, if a family had a baby last year but had not yet submitted their 2020 returns, the IRS would base their payments on their 2019 proceeds – which would not include their new baby. In that case, the family would receive $ 2800 for themselves, but not the extra $ 1400 for their child.
The IRS said that people who are paid less than they should receive due to changes in their tax situation in 2020 will eventually receive the extra money. 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.