Frequently Asked Questions About Stimulus Payments
What is a government stimulus payment?
As part of the American Rescue Plan Act of 2021, the federal government is providing stimulus payments to eligible recipients.
How will I know if I qualify?
Please note: Eligibility criteria outlined in the American Rescue Plan Act of 2021 differs from prior rounds of stimulus payments. Wells Fargo does not have the ability to determine whether you qualify. Your eligibility is determined by the government. To learn more about eligibility and payment amounts, visit IRS.gov/coronavirus.
How will I receive my payment?
If youâre eligible to receive a payment, you will receive the funds in one of these ways:
- By prepaid card. Instead of receiving a paper check, some customers will receive a prepaid card in the mail. Customers are able to use this card like a debit card or transfer funds from their Economic Impact Payment card to their bank account from the Eipcard.com website, from the Money Network Mobile App, or by calling 1-800-240-8100.
Once the IRS begins to distribute payments, the IRS’s Get MY Payment tool will be updated to reflect direct deposit or mailed payment date. The IRS is expected to update the payment status regularly.
When will I receive my payment?
The U.S. Treasury has indicated that payments will be distributed in multiple phases and could take several weeks to distribute, so not everyone will receive payments at the same time.
You can check on the status of your stimulus payment using the IRSâs Get My Payment tool.
Changing Your Tax Status:
A student may be eligible for the college student stimulus if they are willing to change their tax status. You should be careful however since you have a lot of proofing to do that you are at least half self-sufficient.
To be able to change your status, you must be able to show evidence of the fact that you cater to at least half of your needs. Students that live on campuses are close to this category while you that stay at home, have no work will find it difficult to convince the board that you are independent.
This may cost your parent a lot in the long run as they will not be able to file more tax-friendly results if they are single and have no other dependents.
That is your parent will pay more than the $1,800 in tax if they file as single with no dependents.
Will The Unemployment Waiver Work For States Taxes Too
More than half of states levy an income tax on jobless benefits. States will have to decide if they will also offer the tax break on state income taxes.
Its possible that some may still opt to tax the jobless aid, experts say.
Some already exempt taxes on unemployment, including California, New Jersey, Virginia, Montana and Pennsylvania. And some dont levy state income taxes at all, including Texas, Florida, Alaska, Nevada, Washington, Wyoming and South Dakota.
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What If The Irs Has The Wrong Bank Account
Unfortunately, the IRS says you can’t change the bank account it has on file for you unless you get the “Need More Information” message. The IRS is initially relying on bank account information that people gave it through a variety of ways: their 2020 tax return, their 2019 tax return if their 2020 return isn’t yet filed, information you gave the IRS on the “Get My Payment” site last year or information you entered through the “Non-filer” portal last year.
It will also tap federal agencies such as the Social Security Administration or Veteran Affairs to get bank account information for people who receive benefits through those agencies.
So what happens if your bank account changed since you provided that information to the IRS? The bad news is you may have a delay in getting your funds but you will eventually get them, the IRS insists. The agency said 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 through paper check or pre-paid debit card to your mailing address.
Qualifying For Recovery Rebate Credit
Should you qualify for the Recovery Rebate Credit, you are able to claim the child on your 2021 tax return, which will be completed in 2022.
Those who qualify for an additional payment via the American Rescue Plan will be able to have the credit arrive as part of their 2021 refund.
In order to qualify, dependents must be under 19 at the end of the year unless they are a student, or any age but are permanently disabled. In addition, the dependent must be a child, brother, sister, foster child, stepbrother, stepsister, half-brother or half-sister, or a descendent of any of them.
There are some income requirements that must be met to receive the Recovery Rebate Credit payment, though, as taxpayers can receive the full amount if they have an adjusted gross income under $75,000, or an income of $150,000 and are married and filing jointly.
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What If You Didnt File Tax Return Or Register With The Irss Non
You may still be eligible to receive a payment. If you didnt receive a first or second round stimulus payment you may be able to claim the Recovery Rebate Credit when you file your 2020 federal income tax return. For the third round, we will update this page as additional information becomes available from the IRS.
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When You’ll Receive Your Payment
The final date to qualify has already passed for filers other than those with pending ITINs. If you have already filed, you don’t have to do anything.
If you have not received a payment by now, you will most likely receive a paper check. In addition, if you did not receive a refund with your tax return or owed money at the time of filing, you will receive a paper check.
Payments will go out based on the last 3 digits of the ZIP code on your 2020 tax return. Some payments may need extra time to process for accuracy and completeness. If your tax return is processed during or after the date of your scheduled ZIP code payment, allow up to 60 days after your return has processed. Please allow up to three weeks to receive the paper checks once they are mailed out.
|Last 3 digits of ZIP code||Mailing timeframes|
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What Does Need More Information Mean
Others may see a “need more information” message, which the tax agency said means the payment was returned to the IRS because the U.S. Postal Service wasn’t able to deliver the check. In that case, people can use the “Get My Payment” site to provide the IRS with bank information but the tax agency said that only people who get the “need more information” message will be able to add their bank information to the portal.
How Can You Correct Mistakes
The IRS sends out Notice 1444 by mail within 15 days of making a direct deposit or sending a paper check. That letter will tell you the amount of your stimulus payment and how it was made. The letter also provides instructions on fixing issues with your payment.
Don’t Respond to Telephone Calls or Texts About Your Stimulus Check
The IRS will not call, text, or email you about your stimulus payment. The Federal Trade Commission is warning that thieves are posing as government employees to prey on stimulus payment recipients. These scammers may ask for your personal information or threaten you that if you don’t send the money back in the form of money transfers or gift cards, you’ll lose your drivers’ license. Ignore these communications.
Also Check: What Does The Stimulus Check Look Like
Why Did The Irs Send My Tax Refund In The Mail Instead Of Depositing It In My Bank Account
There are a couple of reasons that your refund would be mailed to you. Your money can only be electronically deposited into a bank account with your name, your spouse’s name or a joint account. If that’s not the reason, you may be getting multiple refund checks, and the IRS can only direct deposit up to three refunds to one account. Additional refunds must be mailed. Also, your bank may reject the deposit and this would be the IRS’ next best way to refund your money quickly.
It’s also important to note that for refunds, direct deposit isn’t always automatic. Just in case, sign in to your IRS account to check that the agency has your correct banking information. If you are receiving a refund check in the mail, learn how to track it from the IRS to your mailbox.
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If I Am Incarcerated Am I Eligible For The Stimulus Checks
Yes, if you are incarcerated you are eligible to receive the stimulus checks if you meet the other eligibility criteria.
Eligibility for first stimulus and second stimulus checks:
Eligibility for third stimulus check:
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Can I Track My Payment
The IRS reopened its “Get My Payment” website following the passage of the American Rescue Plan, allowing people to track when they might 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 check the “Get My Payment” site for the new $1,400 checks, they typically see one of several messages.
First, some people will see that their payment has been processed, along with a payment date and whether the payment will be sent via direct deposit or mail. If a check is sent by mail, the IRS will either send a paper check or a pre-paid debit card.
Others may see a message that they are eligible, but their payment hasn’t been processed and therefore there’s no payment date available.
People Who Dont File A Tax Return
Question: What if I dont file a 2019 or 2020 tax return?
Answer: Some people dont file a tax return because their income doesnt reach the filing requirement threshold. If thats the case, the IRS will send a third stimulus check based on whatever information, if any, is available to it. That information potentially could come from the Social Security Administration, Railroad Retirement Board, or Veterans Administration if youre currently receiving benefits from one of those federal agencies. If thats the case, youll generally receive your third stimulus payment the same way that you get your regular benefits. If you supplied the IRS information last year through its online Non-Filers tool or by submitting a special simplified tax return, the tax agency can use that information, too.
Some people who receive a third stimulus check based on information from the SSA, RRB, or VA may still want to file a 2020 tax return even if they arent required to file to get an additional payment for a spouse or dependent.
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Who Does The Irs Consider An Adult Or A Dependent For Stimulus Payments
Under the tax law especially in terms of stimulus check, it is important to define adult or dependent clearly. There are rules from the tax law defining dependents. To be dependent, you must depend on your parents income. Then your parent should explain you as a dependent to get stimulus payment in the year 2019 or 2020.
Why Do I See A Tax Topic 152 Tax Topic 151 Or Irs Error Message
Although the IRS’ Where’s My Refund tool will generally show one of the three main statuses — Received, Approved or Sent — for your refund, there are a wide variety of messages and notices that some users may see.
One of the most common is Tax Topic 152, a generic message indicating that you’re likely getting a refund, but it hasn’t been approved or sent yet. The notice simply links out to an informational topic page on the IRS FAQ website explaining the types and timing of tax refunds.
During the 2022 tax season, many Reddit tax filers who filed early received the Tax Topic 152 notice from the Where’s My Refund tool accompanied by a worrisome message: “We apologize, but your return processing has been delayed beyond the normal time frame. You can continue to check back here for the most up to date information regarding your refund. We understand your tax refund is very important and we are working to process your return as quickly as possible.”
The purported delay could be an automated message designed for taxpayers claiming the child tax credit or earned income tax credit. Due to additional fraud protection steps, the earliest filers with those credits can receive their refunds will be March 1. Several Reddit users commented that the message eventually cleared and they received notifications their refunds were sent.
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What If You Didn’t File Tax Return Or Register With The Irs’s Non
You may still be eligible to receive a payment. If you didn’t receive a first or second round stimulus payment you may be able to claim the Recovery Rebate Credit when you file your 2020 federal income tax return. For the third round, we will update this page as additional information becomes available from the IRS.
Will Tax Refunds Be Delayed Longer For Americans As The Irs Tries To Implement Tax Code Changes In The Midst Of Tax Season
Roughly 7.6 million returns havent been processed yet so far this tax season, according to IRS filing statistics through the week ended March 12. That’s nearly three times the number in the same period last year, when 2.7 million faced delayed processing.
Experts say that most Americans shouldnt expect a major delay in their refunds.
IRS has said there are no delays in tax refunds, unless tax returns trigger a closer look with information that warrants additional consideration as with significant changes from prior returns on information different than on IRS systems, says Steber.
Still, some Americans who made sure to file electronically on Feb. 12 when tax season kicked off contacted USA TODAY this month and said they were still waiting for the IRS to process their returns.
The IRS has said that the typical turnaround time for refunds is 21 days.
Some tax professionals are worried that millions of filers could face significant processing delays, especially those who already filed their taxes if they end up having to file an amended return to take advantage of new tax breaks on unemployment and dependent children from the latest relief package passed last week.
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Who Is Eligible For A College Student Stimulus Check
College students are eligible for the stimulus check. The first and second stimulus checks could not be claimed by most students because dependants of 17 years old and above didnt qualify for a stimulus check.
However, in the third stimulus check, students can now get stimulus in two ways:
- Dependent: if someone claims you on their income tax returns, they get to receive your stimulus when they file a claim
- Independent: if you are financially independent, that is you provide more than half of your financial support, you could qualify for the third stimulus.
This shows that you can get the stimulus if you file your tax returns, meet the income requirement, and have not been claimed as a dependent by your parent or guardian.