What To Expect With Round Two Of Stimulus Checks
The IRS will be sending out the second round of stimulus checks within the next two weeks. Paper checks may be received as late as January 15, 2021. Currently, this is all the information we have. The IRS and US Treasury could begin to send the second stimulus payments to those who qualify a week after the bill was signed first through direct deposit, followed by paper checks. For more up to date information please visit:
Please be aware of the possibility of online banking not being able to withstand the high number of members attempting to log in simultaneously to check for their deposit. While we will prepare our technology provider, we wanted to ask for patience as we work through this round. In addition, we expect phone calls to increase leading to a longer hold time, but we assure you we will be working diligently to answer your calls.
Please keep in mind that this process is driven by the IRS and not Community Resource Credit Union. While we will do our best to answer all your questions, we once again ask for your patience.
Recommended Reading: Who Will Get The $1400 Stimulus Check
Your Stimulus Payments Won’t Be Taxed But There Is One Exception
The IRS doesn’t consider stimulus payments to be income, which means you won’t be taxed on your stimulus money. That also means a direct payment you get this year won’t reduce your tax refund in 2021 or increase the amount you owe when you file your 2020 tax return. You also won’t have to repay part of your stimulus check if you qualify for a lower amount in 2021. If you didn’t receive everything you were owed this year, you can claim your full stimulus check amount as a Recovery Rebate Credit on your 2020 federal income tax return when you file this month .
However, another big caveat here: If you are filing for any missing stimulus money as a Recovery Rebate Credit on your tax return this year, the IRS can potentially garnish that money to pay for any back taxes you owe. Again, an independent taxpayer advocacy group within the IRS is working with the agency to address this issue to protect those funds for vulnerable taxpayers.
Is the stimulus money really yours? That depends.
My Stimulus Check Was The Wrong Amount
Solution: If you recently had a baby, chances are the IRS doesn’t know yet. You might find your stimulus check missing $1,400 for your diapered dependent.
To rectify this, follow the above advice. File a 2020 tax return and/or wait for the additional payment determination date, set for 90 days after the tax filing deadline or Sept. 1, whichever comes first. If that doesn’t work, you can claim the Recovery Rebate Credit on your 2021 tax return . The IRS will either increase your refund or decrease your tax bill by the amount you’re owed.
If you have the opposite problem, and you believe your stimulus was too high because it was based on old income data, you’re in the clear. In general, the IRS is not clawing back money it mistakenly gave out.
Don’t Miss: Track My Golden State Stimulus
Is Any Action Needed By Social Security Beneficiaries Railroad Retirees And Those Receiving Veterans Benefits Who Are Not Typically Required To File A Tax Return
Most Social Security retirement and disability beneficiaries, railroad retirees and those receiving veterans benefits do not need take any action to receive a payment. Earlier this year, the IRS worked directly with the relevant federal agencies to obtain the information needed to send out the new payments the same way benefits for this group are normally paid. For eligible people in this group who didnt receive a payment for any reason, they can file a 2020 tax return.
Also Check: Where Can I Check My Stimulus Status
Stimulus Check Tracking Notifications From Usps: Know When Your Payment Arrives With Informed Delivery
There’s no need to stalk your mailman while you wait for your stimulus check the USPS offers a delivery notification service that can tell you exactly where your payment is in transit, and when it will arrive.
Using the free Informed Delivery tool, you can track your stimulus check once its been processed by the postal service. Like with items you’ve ordered online, Informed Delivery will notify you when the envelope containing your payment from the IRS has landed in your mailbox.
Here’s how it works: Go to the USPS’s Informed Delivery page and click ‘Sign Up for Free.’ Enter your mailing address. Click ‘Continue.’ If your stimulus check has been processed and is heading towards your address, you’re eligible to set up an Informed Delivery account.
Create a username, password and personal security questions. Provide your contact information and click ‘Continue.’ Click ‘Verify identity online’ or ‘Request invitation code by mail’ to verify your account. It’s faster and more efficient to do so online, although you can have a code mailed to you as well.
When your account is confirmed, you’ll see an email every Monday through Saturday from the USPS with the latest update on your stimulus check delivery. You can also use the Informed Delivery app to track your payment.
Recommended Reading: Can I Get Stimulus Without Filing Taxes
Governor Bryan Clarifies Double Stimulus Checks Resulting From Puerto Rico Issuing Direct Deposits
U.S. VIRGIN ISLANDS Governor Albert Bryan Jr. has issued further clarification regarding Puerto Ricos Department of Treasury, known as Hacienda, issuing Social Security stimulus payments to Virgin Islands residents by direct deposit, resulting in some Virgin Islanders receiving double Stimulus payments and creating confusion for residents of the Territory.
Several months ago, monies were made available by the U.S. Internal Revenue Service to issue Stimulus payments to Virgin Islands residents under the CARES ACT, Governor Bryan said. After an insistent lobbying effort by the V.I. Government and others, including AARP, the IRS also subsequently provided a listing of names and mailing addresses of Social Security recipients who reside in the USVI. The Internal Revenue Bureau immediately scrubbed the listing to confirm that all Social Security recipients were Virgin Islands residents with local addresses making them eligible to receive these funds through the V.I. Government.
On July 24, the IRB mailed 6,473 checks totaling $7.3 million of payments of $1,200 for each adult to Social Security recipients in the Territory.
Concurrently, the IRS issued a similar list to the Government of Puerto Rico of eligible recipients who reside in Puerto Rico and the Virgin Islands, the Governor said. Eligible Virgin Islanders on that list would already have received the stimulus checks from the VIBIR by mail and should have been eliminated.
####
Latest Irs Payment Status
The IRS have announced that they have sent out over 180 million EIP/Stimulus check payments worth over $420 billion, including the latest batch. Payments are primarily being sent based on 2019 or 2020 tax return data, or information the IRS has sourced for non-filers. The status and method for these payments is available on the GMP tool. Some payments also include tax credits related to the $10,200 unemployment income tax break provided under the ARPA bill. The IRS also said that they are now processing all payments, including for non-filers and for recipients getting paid by paper check or prepaid debit card. Those who are getting their stimulus payment in the mail should start seeing their money now. Pay close attention to their mail delivery so you dont inadvertently throw out the IRS envelope.
Dont Miss: Update On 3rd Stimulus Package
Also Check: Where Is My Stimulus Check 2
Man Waiting For Stimulus Deposit Says He Accidentally Got $8 Million In Bank Account
Charles Calvin, a volunteer firefighter in Indiana, says he found more than $8 million in his bank account while checking for his coronavirus stimulus direct deposit.
Americans are starting to see direct deposits of their federal stimulus checks due to the coronavirus crisis, and one man briefly saw a bank error in his favor.
Charles Calvin, a volunteer firefighter in New Chicago, Indiana, told WGN-TV that he got his first payment on Friday, but it was a little more than he was expecting about $8 million more than he was expecting.
I went to the ATM at the Family Express and once I withdrew $200 out of my account I looked at the available balance still left in my account, he told the TV station.
It was $8.2 million, he said, showing his bank receipts from the ATM. He was only expecting to receive $1,700.
Calvin said he put his bank card back in the machine and double-checked his available balance: $8,200,000.
Charles Calvin, a volunteer firefighter in Indiana, says he found more than $8 million in his bank account while checking for his coronavirus stimulus direct deposit.
Holy crap, this has got to be wrong, Calvin told The Times of Northwest Indiana. Im like, What in the world is going on? Theres no way I have $8.2 million in my bank account.
It kind of sucks, he told WGN. You go from being a millionaire one second then back to being broke again. But hey, once youre poor you dont have anywhere else to go but up.
MORE ON CORONAVIRUS
I Earn Too Much Money To Qualify For The Full Stimulus
Solution: Your third stimulus check is based on your adjusted gross income, abbreviated AGI. If you make $80,000 or more as a single filer or $160,000 or more as a joint filer, you won’t receive a direct payment.
However, it’s not too late to lower your 2020 AGI. You can make contributions to an individual retirement account or health savings account through at least April 15.
If you do this and your contributions bring your income below the cut-off when you file your 2020 taxes, your adjustment will likely show up when the IRS does its aforementioned additional payment determination later this year. If you’ve already filed your 2020 taxes, you may have to submit an amended return in order to get the additional stimulus money you’re owed. It’s unclear exactly how that will work.
Don’t Miss: Government Home Refinance Stimulus Package
Topic No 161 Returning An Erroneous Refund Paper Check Or Direct Deposit
It’s an erroneous refund if you receive a refund you’re not entitled at all or for an amount more than you’re entitled to.
If your refund was a paper Treasury check and hasn’t been cashed:
If your refund was a paper Treasury check and has been cashed:
If your refund was a direct deposit:
Instances Where Youd Be Required To Return Your Stimulus Payment
The government determines who is and isnt eligible to receive a stimulus check based on several factors. If you fall into any of these categories and received a stimulus check, it was likely by error:
- You received a check for someone who has died but theres some nuance here .
- You dont have a Social Security number.
- Youre considered a nonresident alien without a US citizen spouse.
- Youre a noncitizen who files federal taxes.
- Your adjusted gross income exceeds the limit for example, $87,000 for a single taxpayer with the second check.
- Youre claimed as a dependent on someone elses taxes.
Heres more information about who didnt qualify for the $600 stimulus check.
Recommended Reading: When Will I Get My California Stimulus
Sign Up For Text Banking
Just text us. After you set up text banking within our app or online banking, all it takes is a text message and within seconds you can know your account balance and if a direct deposit has hit your account. If you sign up for text banking now, when the new stimulus legislation passes you can check your account without logging into online banking. Its easy. Watch our how-to video.
Your Third Stimulus Check Can Be Seized Here’s What To Know
Bad news: The new stimulus bill doesn’t have the same protections to prevent your third payment from being garnished for a past-due payment as with the second check. We’ll explain what that means for you.
Who can garnish your stimulus check? We’ll tell you.
For millions of people, third stimulus checks have already been delivered. But for others, they may never see all of the money that gets direct-deposited into their bank accounts. Unlike the second stimulus check, the new stimulus bill doesn’t have the same protections against your $1,400 check being seized by debt collectors.
If you’re waiting on your check to arrive, you’re likely wondering many things: Can my third check be garnished to pay overdue child support? Can states, banks, creditors or my landlord take my money to cover an outstanding debt? If I claim missing money from the first or second stimulus checks on my 2020 tax return, can that get taken too? Will my third stimulus check be taxed? What happens if the IRS sends me too much money by accident?
Recommended Reading: How Much Is The 2021 Stimulus Check
I Think I Need To Talk To The Irs
Solution: The IRS is seriously understaffed right now that’s partially why it made the decision to postpone Tax Day. Even its website warns that “live phone assistance is extremely limited at this time.”
But if you need help with your third stimulus check, you can still try calling. The IRS phone number for stimulus check questions is 800-919-9835.
Yes Your Third Check Might Be Seized To Pay Certain Debts Here’s Why
Under the bill governing the second stimulus check, your funds could not be garnished to pay debts like child support, banks or private creditors. However, part of this rule changed with the third check.
The bill authorizing the third payout was pushed through using a process called budget reconciliation. Congressional Democrats used this legislative tool to more quickly pass the new COVID-19 relief bill and the third stimulus check that comes with it, since it allowed them to pass it with fewer votes. But because this process was used, the third checks aren’t protected from all garnishment, although lawmakers are moving to fix this now.
There are three types of unpaid debt that could be paid through garnishment: unpaid IRS tax debt, other government debt like child support payments or private debt, according to Garrett Watson, a senior policy analyst at the Tax Foundation. Your third stimulus payment will be protected from outstanding tax debt and child support, but not from private debts, such as debt accrued due to a civil judgment, ranging from civil damages to consumer debt in default, Watson said.
Several banking groups sent a letter to Congress on March 9 asking lawmakers to pass stand-alone legislation to prevent the third check from being garnished for private debts.
Don’t Miss: Direct Express Stimulus Check Deposit Date March 2021
Some People Who Receive A Third Stimulus Check Are Required To Send It Back To The Irs Others Can Return It Voluntarily
Your first thought after reading the headline might be, “who in their right mind would give back a stimulus check?” A lot of people who receive a stimulus payment can really use the money right now. And most Americans who don’t really need a helping hand can certainly find something to do with an extra $1,400. So, why would anyone return their third stimulus check to the IRS?
For one group of people, it’s because the IRS is telling them to send it back. They’re not eligible for a payment in the first place, so that makes sense . There’s another group of Americans who will want to return their stimulus check because they can’t otherwise cash it. And then, believe it or not, there may be some people out there who just don’t want the money. They can send it back, too.
So, should you return your third stimulus check to the IRS? Read on to find out. We’ll also let you know how to send it back if you do. The IRS has specific instructions for returning the money, and you’ll want to make sure you do it right. If, like most people, you end up keeping your stimulus payment, just make sure you spend it wisely!
A nonresident alien is not eligible for a third stimulus check. Generally, a “nonresident alien” is not a U.S. citizen, doesn’t have a green card, and is not physically present in the U.S. for the required amount of time.