Though the IRS is sending out stimulus money quicker than the first time around, there are still some complications that are getting in the way of everyone receiving their payment.
As chaotic as things have been on Capitol Hill, it seems that the delivery of the second stimulus checks - or as the IRS calls it, the second Economic Impact Payment - has not been affected. Payments in the form of paper check, direct deposit, and debit card began to be distributed on December 30, 2020 and will continue until the January 15 deadline.
If you do not receive your stimulus payment by January 15, you will be able to claim it when you file your federal tax returns as a Recovery Rebate Credit. Click here for more questions and answers about the second Economic Impact Payment.
There are three ways the government is disbursing payments - direct deposit, paper check, and EIP debit card. After the January 15 cutoff, the timing of your stimulus check delivery becomes a matter of how quick you submit your 2020 taxes and how fast the IRS will be able to process your return.
The IRS has reported to have sent out over two-thirds of stimulus payments through direct deposit. Direct deposit is a quicker and easier mode of delivery versus a mailed paper check, meaning the IRS can process more people faster. However there have been issues with this method.
After checking the status of their stimulus payment online, people have reported their money was deposited in an account that it is not theirs. If that is the case, don’t panic just yet. Customers of H&R Block and Intuit’s TurboTax who purchased Refund Transfer with last year’s taxes are finding that the IRS Get My Payment tool may be actually reflecting that account number instead of their bank account number. Check your 2019 tax return to see if it matches the account number displayed in the tool.
The IRS reports that those receiving their money via direct deposit should have been received by end of day, Wednesday, Jan. 6.
If the IRS does not have your banking information, you will need to wait for your payment to arrive in the mail. They will be sending taxpayers their payment in the form of a paper check or EIP debit card. Mailed payments are on their way, but it’s important to note the US Treasury can only process between 5 million and 7 million paper stimulus checks per week, meaning people will have to wait.
EIP debit cards are prepaid cards the IRS may send out instead of a paper check.
NOTE: the envelope that the card arrives in may appear unmarked, so be careful not to throw it in the trash!
The IRS says it started sending out EIP cards on December 30. If you lose your EIP card, you may request a replacement through MetaBank Customer Service. You don't need to know your card number to request a replacement, simply call 800-240-8100 and choose the second option from the main menu.
If you’ve checked the status of your payment online and are trying to figure out why you have not received your payment yet, there are a handful of reasons why that may be.
You moved and did not update the USPS or IRS: If you moved, the IRS may have an old address on file and doesn’t know where to send your payment. If you did not update the IRS system in time, you may need to claim your payment on your 2020 taxes.
Your payment was reallocated: While Congress took away the situation in which creditors or debt collectors could garnish part of your payment for the second round of checks - your bank could still use the second check to cover overdraft fees and balances.
The IRS does not have your banking information: For the first stimulus, the IRS used information from your 2018 and 2019 tax returns. This time, they just used your 2019 return. If your bank account information was not up to date, they may not have been able to send a direct deposit.
Have you received your stimulus payment yet? Share your story below.