If You Dont Recognize The Account
The most common scenario for this problem: Many people who used a tax prep service like H& R Block or TurboTax to get an advance on their refund found their stimulus check was deposited in a bank account they didnt recognize.
Thats because many tax companies give customers early refunds on a prepaid debit card, then set up a temporary bank account where the IRS deposits the refund. While some people in this situation report getting their stimulus checks without an issue, others have discovered that their check was sent to the temporary account.
In this case, the process will probably be the same as it would be if your check were sent to your old account: The refund will be returned to the IRS, and youll get in line for a paper check.
Robin Hartill is a certified financial planner and a senior editor at The Penny Hoarder. She writes the Dear Penny personal finance advice column.
See Also: Your 2020 Stimulus Check: How Much When And Other Questions Answered
There have been a few bumps in the road, such as problems with the “Get My Payment” tracking tool, deposits sent to incorrect bank accounts, and indecision on whether Social Security recipients would automatically receive a payment. And, now, there are reports of people getting payments for the wrong amount. Sometimes, people are not getting the extra $500 for one or more children. In other cases, there’s no apparent rhyme or reason why people received the amount they did. What do you do if this happens to you? Here’s what we recommend.
If The Check Is Not Enough Will You Ever Get The Difference
If your stimulus check or direct deposit payment is less than what it should be, you’ll still get the difference–you’ll just have to wait until next year to get it. The payment you’re receiving now is really just advanced payments of a new 2020 tax credit. So, if you don’t get everything you’re due now, you can claim it next year as a refund or reduction of the tax you owe when you file your 2020 tax return by April 15, 2021.
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Payment Sent To Wrong Account: Bank Account No Longer Active
If your stimulus payment has gone astray, it could be because you have changed banks since last filing a tax return either in 2018 or 2019.
Alternatively, in last years tax declaration or the previous years, you may have filed with help from a Tax Return Preparer, enrolled agents or certified public accountant and requested a refund anticipation loan or a refund anticipation check instead waiting to receive your tax rebate. Those payments may have been made into a temporary bank account.
It is also possible that you asked for your tax rebate in either 2018 or 2019 to be charged to a prepaid debit card instead of a direct deposit payment into your bank account, then stopped using the card which by now might have expired.
If any of the three cases mentioned above apply to you, then it is can be assumed that the bank account information which the Internal Revenue Service has on record for you is out of date. When sending out stimulus payments via direct deposit, the IRS will use the bank details given on your most recent tax return if you havent filed this years tax return yet, they will refer to the address on your tax return from the previous year .
When A Stimulus Check Goes To A Closed Bank Account
If, on the other hand, the account was closed, you have little reason to worry though your payment will be delayed. According to the Internal Revenue Service, if a stimulus payment goes to an account that is closed, the bank will reject the money. Then, the Internal Revenue Service will look at the mailing address it has on file so the check can be sent by mail instead.
The agency is also required to send you a letter in the mail within 15 days, providing information on how the Payment was made and how to report any failure to receive the Payment.
But it would be worth your time to contact your bank and ensure that the check was in fact rejected. Then, go back into the Get My Payment portal to make sure your mailing address is up to date.
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Get My Payment Says Payment Issued But I Haven’t Received It
The IRS says that it may take three to four weeks to receive a check after it’s mailed. If it has been weeks since the Get My Payment tool says the payment was mailed, and you haven’t received it, you can request a payment trace. The IRS will research what happened to your check if the check wasn’t cashed, you will need to claim the “Recovery Rebate Credit” on your next tax return. If the IRS finds that the check was cashed, you’ll receive a claim package from the Treasury Department with a copy of the cashed check and instructions on filing a claim.
Similarly, if the Get My Payment tool says your payment was direct-deposited, but the money doesn’t show in your bank account after five days, first check with your bank. If the bank says it hasn’t received a payment, you can request a payment trace.
To request a payment trace, call 800-919-9835 or fill out IRS Form 3911, Taxpayer Statement Regarding Refund.
Some Taxpayers Find Relief Payments Sent To Wrong Account
A number of taxpayers who use tax preparation services, such as H& R Block and TurboTax, say their second relief payments were sent to the incorrect bank account, forcing them to wait longer for their money.
The IRS and the Treasury Department began issuing the Economic Impact Payments last week. The payment is $600 for each eligible adult and dependent for people earning up to $75,000, or $150,000 for married couples filing jointly. Those earning more than that are eligible for a reduced payment.
The IRS said that direct deposit payments would take several days to post to individual accounts but funds were largely available on Monday. Some payments are also being sent via paper check or debit cards during the month of January.
Taxpayers can use the Get My Payment tool on the IRS website to find out about the status of their payment.
However, many people said that they checked the IRS site and found their payments were sent to an account they did not recognize.
Samantha Smith of Dallas said she received her $1,200 relief payment in the spring via direct deposit without any issues. But her payment for this round of economic relief went to an account she did not recognize.
Smith, who was laid off in October, had planned to use the money to pay her rent and is frustrated as her hands tied until the money comes in.
I would love that money, she said. Its imperative.
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If My Stimulus Check Is Too Big Do I Need To Pay Back The Government
Probably not. As with all money-related questions, it depends on the situation.
Generally, Winchester says, most discrepancies work out in the taxpayer’s favor. This is the case if, say, your income goes up this year and you cross the $75,000 threshold on your 2020 taxes.
“If your check is larger than it would be if it were based on the information in your 2020 return, you dont have to return the difference,” he says.
Why Did I Receive A Debit Card
The IRS issued millions of debit cards to taxpayers in lieu of second stimulus checks, but will be sending out fewer debit cards out for the third payment. The prepaid Visa debit cards, issued by MetaBank, are called Economic Impact Payment cards. Your EIP card will arrive in a white envelope with “Economic Impact Payment Card” in the return address. You’ll need to activate the card by calling the phone number that comes with the card and choosing a 4-digit PIN number.
You can use your EIP card for purchases or use it to withdraw cash . You can also transfer the funds from your EIP card directly into your own bank account, after you register for online access.
If you use the card wisely, it will be free, but there are some fees to be aware of. If you use an out-of-network ATM or a bank teller to withdraw cash, you may need to pay a fee, and if you check the balance of the debit card, at either an in-network ATM or an out-of-network ATM, you will be charged a small fee.
The IRS has announced that the vast majority of taxpayers should receive their third stimulus payment by direct deposit this time.
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How Do You Track A Stimulus Check
What the IRS Get My Payment tracker can show you about the status of your stimulus check. To get an update of your third check using Get My Payment, enter your Social Security number, date of birth, street address and ZIP or postal code. The tool will then display a message with information about your payment.
Payments To Closed Accounts Will Be Reissued
According to the IRS, the stimulus payments will be deposited into the bank account where a taxpayer’s last tax refund was deposited. In some cases, the IRS has not processed 2020 returns yet, meaning it will still be deposited into the account the 2019 refund was sent to. Others will receive their stimulus payment by check.
Treasury Department and IRS officials have said that they had worked to correct the account mix-up problem, and that there would be a way for any taxpayers experiencing the issue to fix it.
In response to this article, an IRS spokesperson told CNBC Make It that the agency believes “the volume of payments going to closed accounts will be significantly less than any previous round of Economic Impact Payments.”
Any payments sent to closed accounts will be returned to the IRS and reissued in less than two weeks, the spokesperson said. Some have already been reissued. The Get My Payment tool will show the updated information when it’s available, and taxpayers will not have to take any action themselves.
“We are working hard to minimize the burden on taxpayers wherever possible during this extraordinary time,” the IRS spokesperson said. “We have been working around the clock on the stimulus payments and the filing season.”
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Check The Get My Payment Tool
The IRS website has been uploading data for your third stimulus payment into a tool on its website called Get My Payment. If your information has been updated, you’ll be able to see the date you can expect to receive your stimulus payment, or the date it was deposited or mailed. You should also be able to see whether your money was direct deposited or whether you’ll be receiving the payment by mail.
Many people are seeing a message that says either the IRS doesn’t have enough information yet or you aren’t eligible for the payment. This message doesn’t necessarily mean you aren’t eligible for the payment. This information may be updated this coming weekend.
Here are some of the issues people are seeing, either with their actual deposit or with the Get My Payment tool.
Closed Bank Account Stimulus Check Deposits
The IRS has confirmed that if it attempts to use direct deposit but an account is closed, the bank will reject the deposit, and the IRS will mail you a paper check with the address it has on file for you. However, paper checks may take weeks longer to arrive than direct deposits. Regardless of how the IRS sends your stimulus payment, it will also send a letter to the mailing address it has on file for you to let you know how the payment was made and how to report any failure to receive the payment, according to its website.
While there was some flexibility to update bank accounts for the first stimulus payment, the second stimulus payment has to be paid out by mid-January 2021 so existing bank account information is being used. If you dont get your stimulus check by direct deposit, check or debit card by February the IRS is recommending you claim the stimulus payment via your 2020 tax return.
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How To Claim The Recovery Rebate Credit
If you did not receive your first or second stimulus payment, or if it was for the wrong amount, you’ll need to file a tax return for the 2020 tax year . You’ll file Form 1040 or Form 1040-SR . You’ll need your Notice 1444, Your Economic Impact Payment from the IRS when you file. You should have gotten your first Notice 1444 sometime last spring or summer, and you should have gotten your second one in February 2021. You’ll need the amount of the payment in the letter when you file your tax return in 2021.
If you don’t receive your third stimulus payment, or if it was for the wrong amount, you’ll need to file a tax return for the 2021 tax year . You’ll file Form 1040 or Form 1040-SR . You’ll need your Notice 1444, Your Economic Impact Payment from the IRS when you file. You’ll need the amount of the payment in the letter when you file your tax return in 2021.
You can take the Recovery Rebate Credit for any rebate amount that is more than the economic impact payment that you received by completing line 30 of Form 1040 or Form 1040-SR. The instructions for Form 1040 and Form 1040-SR include a worksheet you can use to calculate the amount of the credit you are eligible for.
What Should We Expect
The second round of stimulus payments started going out the last week of December and will continue through early January, according to Luis Garcia, an IRS spokesperson.
The stimulus money is being spread across the economy to consumers in three different ways: Direct deposit into bank accounts, the mailing of paper checks and via new and existing government-related debit cards. Hint: Don’t throw out a new blue Visa debit card if one suddenly pops up in the mail because that card issued by MetaBank could have your stimulus payment on it.
Garcia said direct deposit payments will be made first to individuals who have valid routing and account information on file. This includes both filers and those that used the non-filer tool at IRS.gov to receive their first stimulus payment.
If the IRS doesnt have routing and account information for a direct deposit, taxpayers will be sent either a check or debit card in the form of a new EIP Card. Paper checks and debit cards require more processing and mailing time.
The IRS plans to relaunch the Get My Payment online tool soon to include information on the second stimulus, according to Garcia.
The second round of Economic Impact Payments or what the IRS has called “EIP 2” is generally $600 for singles and $1,200 for married couples filing a joint return. If you have young children, you could receive more money.
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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 taxpayer’s 2019 tax return, and the second payment is a “plus-up” payment that is based on the taxpayer’s 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 haven’t 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 don’t receive deposits or checks in that amount, you may have to file a Recovery Rebate Credit . You can also read the IRS’s press release from April 1, which contains a lot of helpful details.
Bowling Green Mans Stimulus Check Goes To Wrong Account
BOWLING GREEN, Ky. – The second round of stimulus checks .went to thousands of the wrong bank accounts.
Some customers of Turbo Tax and HR Block say their stimulus checks were deposited in the wrong bank accounts.
A Bowling Green man says he used HR Block to prepare his tax returns in 2019 and last week he went to check the status of his stimulus check.
It shows last year, back in April when the first payment went in and went into my bank account. Then now the second one says your money went in on January 4, but it had a different bank account number, said Kerry Norton.
Norton said once he discovered the mistake it took about three to four hours for him to get his money into the correct account.
Be vigilant, get on the irs.gov website and go to get my payment. And if its not in their account, and they need to check h& r block, if they filed through them online.
If your check isnt in your account this week, it is suggested you contact your local HR Block office or TurboTax.
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