Still Don’t Have A Stimulus Check Here’s How To Track Yours
May 12, 2021 / 3:35 PM / MoneyWatch
While major banks in the U.S. started delivering $1,400 stimulus checks in March, the federal relief payments continue to arrive at millions of households struggling to make ends meet amid the coronavirus-hobbled economy.
The Internal Revenue Service has delivered more than 165 million payments, with a total value of approximately $388 billion, the agency said Wednesday. The latest round includes 1 million payments, with the IRS noting they have an official payment date of May 12. That means the most recent recipients will receive a direct deposit on Wednesday, or soon get a paper check or pre-paid debit card in the mail.
The timing and delivery of checks has been a cause of anxiety for some people, especially for those who receive government benefits such as Social Security and don’t typically file taxes. The IRS prioritized sending checks to people who have already filed their 2019 or 2020 tax returns, since the agency was able to quickly verify eligibility based on income and also determine where to mail or direct deposit the checks.
The agency said it’s sending another 500,000 payments to eligible people who recently filed a tax return but for whom it didn’t previously have information to issue a stimulus check.
Inflation Is One Reason Why There Won’t There Be A Fourth Stimulus Check
Rising inflation is a major concern in the USA right now, with the rate hitting 7.5% for January of 2022. When the last of the stimulus checks came out, in March of 2021, inflation was just 2.6%.
Some believe that the stimulus checks helped start the spike in inflation and, whether that’s true or not, another stimulus check wouldn’t help that situation.
A 4th Stimulus Check Is Happeningif You Live In These States
10 Min Read | Jul 14, 2022
It seems like every time a stimulus check goes out, theres a five-second pause before someone starts asking, So . . . will there be another stimulus? . If youre one of those people who has been wondering if a fourth stimulus will happen, weve got your answer: Yes . . . kind of. Its true, a fourth stimulus check is happeningbut only if you live in certain states in America.
Right now, you might be thinking, Wait. What? Really?
Yep, its for real. Lets dig into this topic layer by layer and coast to coast.
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Special Cases For Parents Or Couples Recently Estranged
Its important to check if you fall into one of the following special cases who wont receive a payment. These include some parents and married couples who were recently separated.
- Parents who owe back child support may have their payment garnished.
- Trusts set up for children or dependents wont receive a stimulus payment.
- Some parents who arent married and split custody of their children may take turns claiming them on their taxes. Only the parent who claimed the child as a dependent on their taxes is eligible for the $500 stimulus payment.
- The payment adds another tension to those who were recently divorced or estranged. The $2,400 will be deposited into whichever bank account was associated with the most recent tax return. The non-filing partner must contact the filing partner to ask for their share.
You Didnt File A Tax Return
If you are required to file a tax return, then income eligibility for the third stimulus check is based off your adjusted gross income from 2019 or 2020. That said, not everyone is required to file a tax return . If you didnt file a tax return in these years or use the IRS Non-Filers tool, then the IRS may not have your income information to determine your eligibility to get a stimulus check.
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How Are States Paying For Inflation Stimulus Checks
Its time for the question on everyones mindwhos paying for all of this? Most states are funding these inflation rebate checks through their state budget surpluses. Cool, cool. But what the heck does that mean? Well, its like when you do your monthly budget and have some money left over. Basically, states budget out how they plan to spend cash throughout the year. When they have money left over, thats the states budget surplus. That extra money is how these states are paying for those inflation relief checks.
Most states havent said exactly how much of their surplus theyre giving back to taxpayers, but some have been pretty open about it. In places like Maine, the state is putting over half of the budget surplus back in the pockets of the taxpayers.22
Should I Hold Off On Filing My 2020 Tax Return And What Happens If The Irs Uses 2019 Tax Information
It likely wont make a difference in the longer term other than to update dependent or payment data, but the IRS will only use your 2020 tax return data to determine eligibility for this round of stimulus checks if they have processed your return . If your 2020 return has not been filed and processing, they will use 2019 tax data for payment.
If your 2020 return is filed and/or processed after the IRS sends you a third stimulus check, but before July 15, 2021 the IRS would send you a second payment or require a repayment for the difference between what your payment should have been if based on your 2020 return and the payment actually sent based on your 2019 return.
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People Without Social Security Numbers
Only those with Social Security numbers are eligible for stimulus checks, according to the American Rescue Plan.
Social Security numbers keep track of job benefits and income. They’re also an important part of tax filing a key part of stimulus check eligibility. They’re almost always required for job applications, and are even issued to some individuals who aren’t US citizens, such as permanent residents.
If you work in the US, you should have a Social Security number. If you don’t have a Social Security number, or need a new card with your number on it, it’s possible to apply for one through the Social Security Administration.
Second $600 Stimulus Check Details
While the CAA legislation, under which the stimulus payments were funded, required that the second round of payments be issued by Jan. 15, 2021, some second round Economic Impact Payments may still be in the mail and delivered by the end of February. The IRS however has confirmed has issued all first and second Economic Impact Payments it is legally permitted to issue, based on information on file for eligible people.
Get My Payment was last updated on Jan. 29, 2021, to reflect the final payments and will not update again for first or second Economic Impact Payments.
If you havent yet received your payment and GMP is not showing payment details then the IRS is recommending you claim this via a recovery rebate credit in your 2020 tax return that you will file this year. Major tax software providers like Turbo Tax and Tax Act have updated their software to allow tax payers to claim their missing first or second stimulus payment as a recovery rebate with their 2020 tax filing.
Under the COVID-related Tax Relief Act of 2020, the IRS has delivered more than 147 million EIPs totaling over $142 billion. Due to the lower income qualification thresholds and smaller payments this was lower than the 160 million payments made via the first stimulus check.
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Will Future Relief Efforts Fill In These Gaps
Congress is negotiating the next aid package. Senate Republicans propose $600 billion to refund the PPP. House Democrats would like to include a $60 billion plan to fund community development financial institutions. These are credit unions and community banks that can reach out to the unbanked businesses that dont have a banking relationship.
The bill also includes additional funding for extended unemployment and health benefits. It would add funds for hospitals and community health centers. It would include hazard pay for health care workers and other essential services. The bill would provide more funding for state and local governments. Unlike the federal government, they cannot run a budget deficit. Lower taxes means less revenue, threatening their ability to provide essential services.
Indiana: $125 Rebate Payments
Like Georgia, Indiana found itself with a healthy budget surplus at the end of 2021. In Dec. 2021, Gov. Eric Holcomb announced that Indiana taxpayers will get a $125 one-time tax refund after they file their 2021 taxes.
Theres no income requirement. Residents must have filed a state tax return for the year 2020 by Jan. 3, 2022, as well as a 2021 Indiana tax return by April 18, 2022, to be eligible. Payments started in May and are expected to continue through mid-summer, according to a state information page.
Taxpayers who file jointly will receive a single deposit of $250.
Most taxpayers will receive their additional refund by direct deposit. If you changed banks or dont have direct deposit information on file, youll receive a paper check in late summer.
For more information, visit the state Department of Revenue website. More information will be added for taxpayers who dont receive their payment by Sept. 1.
In June, Holcomb announced a plan to send additional payments of about $225 to taxpayers, but it hasnt yet been approved by the state legislature.
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How Will Child Support Arrears And Payments Be Impacted With Stimulus Check
I seem to be getting a lot of comments on this question around child support. The IRS has confirmed that the stimulus check payment will NOT be offset or intercepted for those owe tax, have a payment agreement or owe other federal or state debts. It will however be OFFSET for past-due child support. This is because a court order for child support continues until it is modified or terminated. Similarly with unemployment compensation stimulus increases, your child support may be withheld from the UI payments. You will get a notice from BFS if this happens.
Can My Stimulus Check Be Garnished
In most cases, no. Most individuals and families should have received a stimulus payment, even if you owe back taxes or other debts to the government or creditors. Ohio law also protects your stimulus check from being garnished by creditors and private debt collectors.
If you owe back child support, the CARES Act allowed a reduction or offset to your first stimulus payment for back child support. However, your second and third stimulus payments can’t be garnished for back child support.
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How To Claim Stimulus Funds In Your 2021 Tax Return
The third round of stimulus payments is worth up to $1,400 per person if your adjusted gross income is $75,000 or less as a single filer, or $160,000 or less as a joint filer. Families are entitled to $1,400 per dependent for dependents of any age.
Before claiming the funds, make sure they weren’t sent to you already. You can confirm the amount of the third payment and whether it was sent to you by logging into your IRS online account or the Get My Payment app. You can also refer to a letter sent to you by the IRS, known as Notice 1444-C, which will tell you how much is owed to you.
If you lost your stimulus check or suspect it was stolen, you can request the IRS to trace your payment and get the amount automatically reimbursed to you as a tax refund. If you’re filing your 2021 tax return before your trace is complete, do not include the payment amount on the Recovery Rebate Credit Worksheet, the IRS says.
Otherwise, you’ll need to complete the Recovery Rebate Tax Credit worksheet and submit it as part of your 2021 tax return. The worksheet will help you calculate how much you can claim. Then, claim it on line 30 in Form 1040 or Form 1040-SR of your 2021 tax return.
Tax software will also guide you through this process and automatically add all the information to your tax return.
And remember, you can file your tax return for free if your income is $73,000 or less, using the IRS Free File Program.
Delaware: $300 Rebate Payments
In May, Delaware started sending relief rebate payments of $300 to taxpayers who filed their 2020 state tax return. The one-time payment is possible due to a budget surplus. Couples filing jointly will receive $300 each.
Payments were distributed to most eligible Delaware residents in May.
Instructions to claim the rebate havent yet been released for residents who havent filed a 2020 state tax return. Instructions are anticipated to be announced by Oct. 17.
Check your rebate status or get answers to frequently asked questions from the Delaware Department of Finance.
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Not Everyone Who Lives In A Us Territory Is Ensured A Check
With the first two stimulus checks, people who live in Puerto Rico, the US Virgin Islands, American Samoa, Guam or the Commonwealth of the Northern Mariana Islands may have been eligible to receive payments. Whether these groups qualified for a check has in the past been determined by the tax authorities in each territory. These agencies were also directed to make the payments. It’s the same situation for the third stimulus checks.
If you never received a payment for one or both of the previous stimulus checks, you’ll need to contact your local tax authority to inquire.
Nonfilers will need to take an extra step to get their stimulus money.
What If Your State Isnt Offering Extra Stimulus
If you don’t qualify for a state stimulus check or your state isn’t offering them, you’ll need to find relief on your own. Here are just a few ideas.
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Deal with your debt. Credit is convenient, but it doesn’t take long before expensive interest catches up with you. If you’re juggling multiple credit card balances and other high-interest debt, fold them into a single debt consolidation loan to pay off what you owe faster and more affordably.
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Stretch every dollar. Can you drop subscription services you’re not using? Can you downgrade your phone plan to save a few dollars every month? And finally, are you getting the best deals when you shop online? If you’re not sure about that last one, download a free browser extension that automatically scours the internet for better prices and coupons.
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Turn your pennies into profits. Earn some returns in the red-hot stock market, even if you dont have much money or much experience with investing. A popular app can help you invest just your “spare change” from everyday purchases and build your pennies into a diversified portfolio.
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
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When Should I Receive The Stimulus Check
For those who have e-filed tax returns with the IRS in the past or otherwise provided the IRS with their direct deposit information, the IRS started to direct-deposit stimulus money last weekend.
Other individuals will receive their payments by mail. The IRS will start mailing some checks in mid-March. If you received the first or second stimulus check by direct deposit, there’s no guarantee you’ll receive the third check by direct deposit, especially if you filed your tax return after your first or second stimulus payment and didn’t use direct deposit for your tax refund.
Look Up Your Golden State Stimulus Amount
However, the state delayed clarifying what kinds of income made people eligible for the stimulus, confusing many Californians on fixed incomes.
Only in late July did the state tax agency update its webpage to clarify that income from various public assistance programs Social Security, disability insurance and veterans disability benefits didnt count.
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People Who Owe Money To Their Bank
Lastly — and I fully admit this is a pretty broad-spanning and somewhat vague umbrella — people who owe their bank money may not see any of their stimulus payment. There’s specific language in the CARES Act that prohibits federal and state debt collectors from seizing Economic Impact Payments to cover outstanding debts, but banks, which are private debt collectors, aren’t guided by those same rules. Since the stimulus check is a tax credit and not a federal benefit, it gives banks the right to utilize this money the moment it’s deposited into your account to satisfy what you owe.
What might banks use your stimulus check to cover? In theory, anything. Everything from overdraft fees to an outstanding loan is fair game for your bank to utilize your stimulus payout to offset what you owe.
The big question is whether or not banks will actually use this tactic to offset consumer debts. Among big banks, only JPMorgan Chase and Wells Fargo have thus far stated that they would not use stimulus payments to offset customer debts. This likely casts doubt among the tens of millions of folks who don’t bank with JPMorgan Chase or Wells Fargo.
Sean Williams has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.