Stimulus Checks Sent To Wrong Bank Accounts For Some Americans Checking Irs Get My Payment Tool
Some Americans say their government checks were deposited in the wrong bank accounts this weekend, forcing many of them to wait longer for the badly needed aid after struggling financially during the COVID-19 pandemic.
Those taxpayers were surprised to see that the last four digits of their bank account numbers were incorrect when they checked their payment status on the IRS website, an issue that happened during the first two rounds of direct payments when technical glitches from third-party tax preparers caused delays for many filers.
Some taxpayers are frustrated that they might have to wait for a paper check in the mail, while others still havent received a dime of the second payment that was supposed to arrive months ago.
When USA TODAY contacted the IRS, the agency directed all questions to the FAQ page for its Get My Payment tool.
If a filers bank information is invalid, or the account has been closed, the bank will return the payment to the IRS, and the agency will mail a check to the address on file, the IRS says on its website.
Where is my payment? IRS updates Get My Payment tool with information on new COVID-19 payments
Lori Young, 52, didnt recognize the bank account destination for her third check.
Young has received Social Security benefits via direct deposit for five years, and she hasnt changed her bank account.
What Can You Do
Taxpayers will be able to square things up when tax filing season begins later in January. It’s not terribly reassuring if you’d like the money now but the tax return will offer some relief.
The 2020 federal income tax return will include a Recovery Rebate Credit that will apply to both the first and second round of stimulus payments.
The IRS notes: If you have not received your full payment by the time you file your 2020 return, you may claim the Recovery Rebate Credit on your tax return.
If you’re worried now, the IRS suggests that taxpayers go to IRS.gov to track the stimulus payments. The IRS says taxpayers should not call their bank or the IRS.
Given the level of frustration that some are experiencing now, though, it is best to try to take a breath and not bank on that stimulus arriving quickly. The stimulus sequel isn’t looking much better than the original production.
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Why Did We Get Only Half The Amount
Many couples are finding that they are getting direct deposits for only a portion of what they think their stimulus payment should be. Some have gotten half of their payment deposited one week and half the next, and other couples are finding that their dependents share of the stimulus money is split between the two parents.
The IRS has explained that the first payment made might be based on a taxpayers 2019 tax return, and the second payment is a plus-up payment that is based on the taxpayers 2020 tax return.
The IRS has also said that part of the problem may be with injured spouse claims on a tax return. of only one spouse, the injured spouse can request a refund.) The IRS says that these couples will get their payments as two separate payments.
If you havent received the full amount, wait until you get your Notice 1444, Your Economic Impact Payment, from the IRS. That letter should have the correct amount of your stimulus payment. If you dont receive deposits or checks in that amount, you may have to file a Recovery Rebate Credit . You can also read the IRSs press release from April 1, which contains a lot of helpful details.
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I Had A Problem With The First Or Second Payment
Some individuals had too much income in 2019 to qualify for the first or second stimulus payment , but their income decreased enough in 2020 for them to qualify. If you fall into this category, you can file a tax return for your 2020 taxes and youll receive a recovery rebate credit as part of your refund .
In other cases, families received stimulus payments by direct deposit but the IRS neglected to add money for one or more of their children. Sometimes there didnt seem to be a reason for this . For other families, it seems the IRS did not update the number of children that taxpayers have, even for families who claimed new children on their 2019 tax returns. Youll be able to claim the rest of the stimulus payment when you file your next tax return.
If Your Third Stimulus Check Is Lost In The Mail Or Something Else Happens To It Before You Get It You Can Ask The Irs To Trace Your Payment Here’s How It Works
It’s bad enough if a new sweater you ordered on Amazon gets lost in the mail but you’re really going to get mad if the post office loses your $1,400 stimulus check. What do you do then? Or what happens if your bank never receives your direct deposit stimulus payment from the IRS? Are you going to lose that money?
Fortunately, the IRS has a procedure to help. If your third-round stimulus payment is lost, stolen or destroyed, you can ask the IRS to perform a “payment trace” to see if your check was cashed or direct deposit misdirected. Ultimately, if everything goes smoothly, you’ll be issued a new payment. That’s the good news.
But there’s some less than thrilling news, too. First, you have to wait a certain period of time before starting the process, and then it’s going to take some time. So, you won’t get your stimulus money right away. Second, as with any government request, there’s a healthy list of procedures you must follow. Slip up on one of the steps, and you could find yourself in a bureaucratic black hole. But don’t worry. While dealing with the IRS can be intimidating, we’ll help you get through the process.
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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.
Dont 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 dont send the money back in the form of money transfers or gift cards, youll lose your drivers license. Ignore these communications.
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Stimulus Check Payment Issues
Several readers have noted that they are seeing their checks getting deposited in the wrong accounts based on the IRS GMP tools payment status. This error was discovered when eligible recipients saw the last four digits of their bank account numbers were incorrect. This same error had occurred with prior stimulus payments and was primarily due to data glitches from third-party tax preparers to the IRS. When this happened with prior payments the IRS had to send the payment via a paper check in the mail, which could take several weeks.
If you dont get your check by the end of April and dont get notice of a paper check you will have to claim the stimulus payment as a recovery rebate credit in your 2021 tax return.
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Stimulus Checks Going To Wrong Bank Accounts
Its happening again. People are reporting their stimulus check deposited into the wrong account.
Debbie Baker and her daughter were looking forward to getting their $1,400 stimulus checks and putting them toward a much-needed vacation.
Yes, it would be nice to hit the beach, Baker said.
But neither one of them has their $1,400 yet, and Baker just discovered the IRS sent hers to her old bank.
When I went to the IRSs Check my Stimulus page, it actually gave me my old bank account, she said.
Thats despite the fact she gave the IRS her new banking info back in January.
Taxpayers frustrated with few answers
The same thing happened with the last stimulus two months ago, as Niecie Boyd told me earlier this year.
The first payment was sent back in April to the correct last four digits of my account, she told us at the time. The second payment went out Jan. 4, but then last four digits I did not recognize, it wasnt any of my accounts.
Boyd and millions of people saw their $600 stimulus sent to their tax preparers, such as H& R Block or Turbotax, instead.
The IRS says it has fixed that glitch by now and does not believe it should be an issue this time.
However, the agency says it is sending the $1,400 checks to the bank account that it had on file last year.
If you changed bank accounts in the past year, like Baker and her daughter, it will bounce back to the IRS and will be mailed to you at a later date.
That means the pairs vacation will have to wait.
WBRC
Some Cant Update Banking Information
Some people have run into issues updating their bank account information with the IRS.
Ryan Deckard, who lives in Pittsburgh, received the first payment, but he never got a second one after the Get my Payment tool showed an account that was no longer active for him.
When tax season kicked off this year, he filed his 2020 return with TurboTax on the first day Feb. 12 to make sure his bank account information was updated with the IRS. He claimed the Recovery Rebate Credit to get his second payment.
When he went online to check the status of his third relief check, his old account information still showed up on the agencys website.
Ive been in the throes of a meltdown. Im tired of going to bed hungry, said Deckard, 33, an unemployed author.
Why cant I change my banking information? The government shouldnt be blindly sending money to closed bank accounts, Deckard said. It seems like the people who need the money most cant get it.
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You Used Turbotax’s Or H& r Block’s Refund Transfer
During the last rollout of stimulus checks in January, the IRS erroneously sent stimulus payments to holding accounts at TurboTax’s and H& R Block’s partner banks. These accounts are used when a customer opts into refund transfer, meaning they give the company permission to take its fees out of their refund before sending the refund to their bank account.
Both TurboTax and H& R Block said they provided the IRS with the correct bank accounts for customers this time around, so the mishap shouldn’t happen again but it’s not guaranteed.
In any case, if a payment bounces back to the IRS then it will be re-sent in the mail as a paper check or prepaid debit card.
Here’s What To Do If The 3rd Stimulus Check Was Sent To The Wrong Bank Account
Its happening again: Some people are reporting their stimulus check deposited into the wrong again.
Debbie Baker and her daughter were looking forward to getting their $1,400 stimulus checks and using them toward a vacation.
Yes, it would be nice to hit the beach, Baker said.
But neither one of them has their $1,400 yet. Baker just discovered the IRS sent hers to her old bank.
When you do that check my stimulus thing, it actually gave it to my old bank account, Baker said even though she gave the IRS her new banking info in January.
Imagine pulling up to the bank someday and finding the windows are boarded up and the ATM machines have been taken.
Well thats a bit what it feels like for people whose stimulus checks went to the wrong bank account.
The same thing happened with the last stimulus two months ago.
The first payment was sent back in April to the correct last four digits of my account. The second payment went out on Jan. 4, but the last four digits I didnt recognize, Boyd said, it wasnt in any of my accounts.
Boyd and millions of people saw their $600 stimulus sent to H& R Block or TurboTax instead. That original issue should be all fixed now.
This time, the IRS says it is sending the $1,400 checks to the account it had on file last year.
If someone recently changed banks, like Baker and her daughter, it will bounce back and be mailed to them instead which means the vacation will have to wait.
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What Happens If Someone Else Got Your $1400 Stimulus Check
Amid the rush to get the stimulus money quickly out to those most affected by the ongoing pandemic, there have been some instances of payments being sent to wrong accounts or addresses.
Theres no question that the Internal Revenue Service and the U.S. Treasury should be applauded for already successfully sending out one hundred twenty-seven million coronavirus relief checks to financially struggling Americans.
But amid the rush to get the stimulus money quickly out to those most affected by the ongoing pandemic, there have been some instances of payments being sent to wrong accounts or addresses.
The issues were apparent for previous stimulus payments as well.
The first payment was sent back in April to the correct last four digits of my account. The second payment went out on January 4, but the last four digits I didnt recognize, Niecie Boyd recently told the station WHTM in Harrisburg, Pennsylvania. It wasnt in any of my accounts.
According to the IRS, if you have signed on with a new bank or moved since your last filed tax return, your stimulus check could have been sent to your old account or address.
The agency has indicated that it has no way of knowing that the account or address has been changed, so you should update that information as soon as possible. Keep in mind that the bank that the payment was sent to must return the funds to the agency if the account holder is no longer a customer.
Some Kansans Face Frustrations With Stimulus
WICHITA, Kan. – Over the next 10 days, the IRS will continue to send out stimulus payments to millions of Americans. Many have already received the $600 payments, but others are finding out that their payments were sent to the wrong bank account. On Tuesday , Eyewitness News spoke with Kansans who say this happened to them. They say they are confused, panicked and worried that their stimulus checks were sent to strangers. Eyewitness News learned that is likely not the case and the money should be coming soon.
James Spark and Jennifer Corwell-Pugh are among Kansans whose stimulus checks were sent to the wrong account.
I was angry. Theres a lot of people who need that money, including myself, Spark said.
Crowell-Pugh worried the money shes expecting was gone.
It says it shouldve been deposited , but it went into a different account, she said. …I thought it went into a strangers account.
It was a similar situation for many who file taxes through H& R Block and TurboTax. H& R Block on Monday tweeted a statement, saying this can happen if you chose a refund transfer in 2019.
These stimulus payments, based on tax-return information, while theyre supposed to go to the taxpayer, the end client, theyre being sent to this account that the tax preparer has some control or affiliation with, Market Tax Services CPA Joshua Cicora said. And so the payments have a bit of a lag to them. Its particularly painful right now because so many people are needing this money.
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You Get Federal Benefits On A Direct Express Card
Social Security retirement and disability beneficiaries, railroad retirees, and people who received veterans’ benefits in 2020 don’t need to do anything to get the third stimulus check. The IRS is working with those federal agencies to send the payments to beneficiaries the way they normally get paid, provided they haven’t filed a tax return.
If your typical method of payment is a Direct Express card, the “Get My Payment” tool will show a bank account number that’s associated with that card. You might not recognize it, but rest assured the money will be loaded onto your Direct Express card.
When A Stimulus Check Goes To The ‘wrong’ Bank Account
Say your account on file with the IRS is still active, but its not your preferred account because you owe fees or its so old that you forgot your password. Unfortunately theres little you can do if the IRS has already begun processing your stimulus payment.
If it goes to an account which is still active, thats where its going to go and its going to be your responsibility to figure out what to do, Howard Gleckman, a senior fellow at the Urban-Brookings Tax Policy Center told Money.
When it comes to accounts with debt, some banks are being more lenient than others, as outlined by the Prospect: JPMorgan Chase, for example, said theyre willing to send the check back to the government. Some states have put laws in place preventing banks from withdrawing from your stimulus checks, so look up your states stance on garnishment orders.
If the stimulus payment goes to an account you cant access for some reason, your best bet is to try and contact the bank to recover your password and get access to the money.
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