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.
When Will Your Second Stimulus Check Arrive It May Already Be On Its Way
When are second stimulus checks coming? Now! The IRS has already started delivering second-round stimulus checks to millions of Americans who received a first-round payment earlier this year. In fact, initial direct deposit payments have already arrived for some people.
If you don’t receive a direct deposit soon, watch your mail for either a paper check or a debit card. The IRS started mailing paper checks on December 30. To speed up delivery, a limited number of people will receive their second stimulus payment by debit card. But the form of payment for your second stimulus check may be different than your first payment. Some people who received a paper check last time might receive a debit card this time, and some people who received a debit card last time could receive a paper check.
If you receive a debit card, don’t throw it out thinking it’s junk mail! The debit cards will be issued by MetaBank, and they will arrive in a white envelope that prominently displays the U.S. Treasury Department’s seal. The Visa name will be on the front of the card, and it will say “MetaBank” on the back. More information about these cards is available at EIPcard.com.
H& r Block Turbotax Problems
Intuit’s TurboTax on Tuesday also tweeted that some customers were having problems receiving their stimulus checks. “The IRS announced yesterday that due to the speed at which they issued this second round of payments, they sent some payments to an account that may be closed or no longer active,” the tax-prep service said.
The IRS said checks sent to closed or inactive accounts can’t by law be held by the financial institutions and redirected to consumers. Instead the funds will be returned to the IRS, and people who didn’t receive a check must wait until they file their 2020 tax returns to get the stimulus money in a refund. Because of that, it’s likely that those customers will face a delay.
Some customers responded on social media that they had panicked after failing to receive their funds as expected, with some expressing concern they had been a victim of fraud.
Meanwhile, the IRS said on Monday that the direct deposits could take “several days” to post to individual accounts after the official payment day of January 4. It added that some people may see their stimulus checks listed as pending or as provisional payments in their accounts.
Here’s what to know about tracking your payment.
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What If I Don’t Receive My Payment
The IRS said that since direct deposit payments are issued based on routing and account information that is already on file with the agency, it’s possible payments may be sent to an account that has been closed or is no longer active.
If a payment is sent to a closed account, the financial institution must return the payment to the IRS. If you have not received your full payment by the time you file your 2020 tax return, claim the Recovery Rebate Credit on your tax return.
What Information Will You Need
To access the tool, you’ll be asked to provide a:
- Street address and
- Five-digit ZIP or postal code.
If you file a joint tax return, either spouse can typically access the portal by providing their own information for the security questions used to verify a taxpayer’s identity. Once verified, the same payment status is shown for both spouses. In some cases, however, married couples who file a joint tax return may get their third stimulus payment as two separate payments half may come as a direct deposit and the other half will be mailed to the address the IRS has on file. If that case, each spouse should check the “Get My Payment” tool separately using their own Social Security number to see the status of their payments.
If you submit information that doesn’t match the IRS’s records three times within a 24-hour period, you’ll be locked out of the portal for 24 hours . You’ll also be locked out if you’ve already accessed the system five times within a 24-hour period. Don’t contact the IRS if you’re shut out. Instead, just wait 24 hours and try again.
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You May See A ‘payment Status Not Available’ Message
Don’t be alarmed if the Get My Payment tool gives you a message that says “Payment Status Not Available.” You may see this message until your payment is processed, according to the IRS. So you may not have to do anything.
But it could also mean you’re not eligible for a payment. So you may want to double-check your eligibility and plug your numbers in our stimulus check calculator to see whether you’re due money.
What If You Didnt Receive Your First Stimulus Check
If you are an eligible individual and you did not receive a stimulus check earlier this year, you will be able to claim it when you file your 2020 taxes in 2021. This is also true if you do not receive your second stimulus check.
If you didnt receive a check, the IRS urges you to review the eligibility criteria when you file your 2020 taxes many people, including recent college graduates, may be eligible to claim it. The stimulus checks will be referred to as the Recovery Rebate Credit on Form 1040 or Form 1040-SR. You can read more about the Form 1040 for 2020 – including where the RRC can be found – here.
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Do You Pay Taxes On Your Stimulus Check
The short answer is no, you do not have to pay taxes on your stimulus check.
The stimulus check is recognized a tax credit, therefore it is not considered taxable income. Rather, no matter how much your payment is worth, you can deduct it from the total taxes you owe next year.
It will be reflected on your 2020-2021 tax return in your total refund amount, but you won’t collect it then because you’ve already received the advance. If you haven’t received your payment, check that you’re eligible and have fulfilled the requirements.
Coronavirus Stimulus Check: How To Check Status
The IRS’s online tool called Get My Payment tool went live early Monday afternoon. This online tool was available at the time of the first stimulus checks as well. However, it went offline a few days before the second stimulus checks started going out. The IRS likely took it off to update information for the second payment.
Data on this online tool is updated once a day . So, if you already checked your payment status once, then don’t bother to check it again until the next day.
Talking of how to use the online tool, once you are on its page, you need to enter your social security number and your address to get the status update. Once you enter the details, the tool will show the status of your first stimulus payment , as well as the second payment.
Further, the tool also tells whether the IRS would be sending your payment through direct deposit or the mail. This online tool is available in two languages English and Spanish. The IRS is requesting Americans to use this online tool for information on their stimulus payment, instead of calling the agency or financial institutions.
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Payment Status Not Available
Some people were confused to see the message Payment #2 Status Not Available when checking the status of their stimulus check on the IRS website. At the time of this writing, the IRS has stated that those receiving this message will not get a stimulus check by mail or direct deposit. Instead, youll need to claim the Recovery Rebate Credit on your 2020 Tax Return. This will either increase your tax refund or decrease the amount of taxes you owe by however much your stimulus check was supposed to be.
My Stimulus Payment Went To The Wrong Bank Account
If the Get My Payment tool tells you your check will be direct-deposited, it will also provide the last four digits of the number of the bank account into which your stimulus payment will be deposited. For the initial checks, some individuals saw that their deposit was going to an old bank account, or they even saw bank account numbers that they didn’t recognize. Here’s what to do:
- If the tool says that your payment was deposited into your bank account but you haven’t seen it yet, your bank may still be processing it.
- You won’t necessarily get the third check direct deposited, even if the first or second one was direct deposited.
- If your third stimulus payment is sent to a closed bank account, the bank is required to transfer the money back to the IRS. The IRS will not redeposit it to you or mail you a paper check. Instead, you will have to file your 2021 tax return to claim your “Recovery Rebate Credit.” See below for instructions on claiming the rebate on your tax return.
- If H& R Block submitted your last tax return and you signed up for a “refund transfer,” the IRS might deposit your stimulus payment with H& R Block . H& R Block should transfer the money to your bank account within 24 hours.
- Those who submitted their last tax return with Turbo Tax should receive their payments in the same bank accounts through which they received their tax refunds.
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What Should The Second Stimulus Check Be Used For
The money from the second stimulus check can be used for anything. While its best to seek advice from a financial advisor, here are a few smart ways to use your check.
- First, make sure your basic needs and living expenses are covered. This includes paying for things like shelter , electricity, heat, food and water.
- If your needs are covered and youre struggling to make payments on your debts, you could use the money to cover minimum payments for some time.
- If youre concerned about the future, save the money in an emergency fund to cover future expenses should you lose your job or become ill.
- If you can pay your bills and have a healthy emergency fund, use the money to save for a down payment or other big future expense.
- If your bills are covered and you have money saved up, you can spend your money to help local businesses or, as the name suggests, stimulate the economy.
What If You Have Trouble With The Tool
To use the Get My Payment tool, you must first verify your identity by answering security questions. If the information you enter does not match IRS records, you will receive an error message. To avoid this:
- Double-check the information requested
- Make sure what you enter is accurate
- Try entering your street address in a different way and
- Use the US Postal Services ZIP Lookup tool to look up the standard version of your address, and enter it into exactly as it appears on file with the Postal Service.
If your answers do not match the IRS records three times, youll be locked out of Get My Payment for security reasons. If that happens, you must wait 24 hours and try again. If you cant verify your identity, you wont be able to use Get My Payment. Unfortunately, theres no fix for that: the IRS says not to not contact them.
However, if you verified your identity and received Payment Status Not Available, this means that the IRS cannot determine your eligibility for a payment right now. There are several reasons this could happen, including:
- You didnt file either a 2018 or 2019 tax return or
- Your recently filed return has not been fully processed.
Again, the IRS says theres no fix for that and you should not contact them.
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What If I Receive Social Security Through The Direct Express Debit Card
The IRS says that people who receive government benefits such as Social Security, Railroad Retirement benefits, Supplemental Security Income or Veteran’s Benefits through Direct Express a debit card that automatically receives payments will get their second stimulus checks deposited onto that card.
But the IRS cautioned, “The bank information shown in Get My Payment will be a number associated with your Direct Express card and may be a number you don’t recognize.”
What If You Have Changed Your Address Or Bank Account
The IRS will use the data already in its systems to send the new payments:
- If your direct deposit information is on file, you will receive the payment that way.
- If your direct deposit information is not on file, you will receive the payment as a check or debit card in the mail.
Some payments may have been sent to an account that may be closed or no longer active. By law, the financial institution must return the payment to the IRS, they cannot hold and issue the payment to an individual when the account is no longer active.
The IRS cannot change payment information, including bank account or mailing information. If an eligible taxpayer does not get a payment or it is less than expected, it may be claimed on the 2020 tax return as the Recovery Rebate Credit. Remember, Economic Impact Payments are an advance payment of what will be called the Recovery Rebate Credit on the 2020 Form 1040 or Form 1040-SR.
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Will Payments Be Sent Quicker Than Last Time
In almost all cases, yes. This time, its expected that the payment distribution process will go more quickly for people who have a bank account or mailing address on file with the IRS.
Direct deposit delivery of stimulus payments officially began on Dec. 29, and mailing of paper checks began on Dec. 30, according to a press release from the U.S. Treasury Department. Direct deposit payments are expected to arrive in early January, the Treasury said.
Delivery of this round of aid is expected to conclude in January for anyone receiving payment by direct deposit, check, or debit card.
When the first round of Economic Impact Payments was authorized in March 2020, the Treasury expected 50-70 million Americans would receive direct deposit payments by April 15.
An IRS schedule obtained by The Washington Post revealed a rollout plan extending into September 2020, with lower-earners getting their paper checks by mail first and higher earners getting theirs in late summer.
By September, although more than 159 million people had received payments, the IRS urged up to 9 million people who hadnt received payments to register to receive one. Those suspected to be waiting for payments at that time included low-income earners who typically were not required to file a tax return, and people experiencing homelessness.
Didn’t Get The Full Third Payment Claim The 2021 Recovery Rebate Credit
You may be eligible to claim a 2021 Recovery Rebate Credit on your 2021 federal tax return.
Individuals can view the total amount of their third Economic Impact Payments through their individual Online Account. Through March 2022, we’ll also send Letter 6475 to the address we have on file for you confirming the total amount of your third Economic Impact Payment and any plus-up payments you received for tax year 2021.
You will need this information from your online account or your letter to accurately calculate your 2021 Recovery Rebate Credit when you file your 2021 federal tax return in 2022. For married filing joint individuals, each spouse will need to log into their own online account or review their own letter for their half of the total payment. All amounts must be considered if filing jointly.
Using the total amount of the third payment from your online account or Letter 6475 when preparing a tax return can reduce errors and avoid delays in processing while the IRS corrects the tax return.
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Will You Get A Paper Check Or A Debit Card
If you are eligible for the second round of stimulus payments and you did not get a direct deposit by early January, chances are your payment was supposed to arrive by either a paper check or a debit card. If you got a paper check for your first stimulus payment last year, you might still get a debit card this time. And some people who got a debit card last time may receive a check now.
IRS and Treasury urge eligible people who dont receive a direct deposit to watch their mail carefully during this period for a check or an Economic Impact Payment card, which is sponsored by the Treasury Departments Bureau of the Fiscal Service and is issued by Treasurys financial agent, MetaBank®, N.A, the IRS explained. The Economic Impact Payment Card will be sent in a white envelope that prominently displays the U.S. Department of the Treasury seal. It has the Visa name on the front of the Card and the issuing bank, MetaBank®, N.A. on the back of the card. Information included with the card will explain that this is your Economic Impact Payment.
More information about the debit cards is available at EIPcard.com.