Major banks will begin handing out $ 1,400 stimulus checks on Wednesday, as part of the IRS’s effort to send 100 million checks in the next 10 days. The timing of controls is a concern for many people struggling with bills as the economy continues to be hampered by the corona pandemic
The Internal Revenue Service said Wednesday it made 90 million payments worth $ 242 billion in its first batch of checks, while another 150,000 checks worth about $ 442 million were mailed. On Monday, IRS and Treasury officials said about 100 million checks would be distributed within 10 days.
Some people who bank with smaller institutions, such as the start-up bank Current, had already received payments on Friday, a day after President Joe Biden American rescue plan in the law. Those banks had used their own balance sheets to credit customers’ accounts instead of waiting for the official March 17 settlement date set by the IRS.
However, that doesn’t mean all eligible people will receive the payments on March 17, as the IRS will divide the funds into installments or groups of payments for the next several weeks. In a few cases, some people can also see it delays, as in the case of people who have filed paper tax returns. That’s because the IRS bases payments on a person’s most recent tax returns, but it is backed up by processing paper forms due to the pandemic.
A year after the pandemic brought the US economy to a halt, millions of people continue to struggle. According to a new study from TransUnion, a financial services company, about 38% of people said their family income is still affected by the crisis. That’s a significant drop from a year earlier, when about 6 in 10 people said their household income had taken a hit, but it still shows the ongoing financial struggles that many Americans face, said Charlie Wise, global chief. research and advice at TransUnion. .
“It’s a material improvement, but it indicates that more than a third of consumers are still feeling some sort of financial impact,” Wise told CBS MoneyWatch. “That’s a big problem.”
Certainly, not everyone who qualifies for a stimulus check has suffered both income and job losses. About 4 in 10 people told TransUnion that their income did not change during the pandemic.
JPMorgan Chase said on Wednesday that it has posted all payments it has received from the IRS to date. But some Wells Fargo customers complained on social media that they struggled to log into their online accounts, adding to their frustration with accessing their money.
In a statement, Wells Fargo said it is working on the issues. “We apologize to our customers who may be having problems with our online banking this morning due to the high volumes,” a spokesperson said in an email. “This will not affect promotional payments as of March 17 that were credited to accounts today.”
Here’s what you need to know about the timing of the controls.
Why did some people get checks before March 17?
As noted above, some smaller bank customers received their checks just one day after Mr. Biden signed the lump sum payment in law. That’s because those banks made the decision to immediately credit the money to customers’ accounts by using their own balance sheets.
But some larger banks said the timing of the payments was beyond their control.
Although the IRS began issuing payments over the weekend, the official payment date was set for March 17, Wells Fargo and JPMorgan Chase told CBS MoneyWatch. Wells Fargo added that it was “not holding the money” and that it would put the money into accounts Wednesday morning.
Can I track my payment?
The IRS reopened its “Get My Payment” website following the approval of the US bailout, allowing people to track when they would receive their incentive checks.
The IRS created this portal last year for the $ 1,200 incentive checks led by the Coronavirus Aid, Relief, and Economic Security, or CARES, Act.
When people visit the “Get My Payment” site for the new $ 1,400 checks, they will see one of several messages.
First, some people will see that their payment has been processed, along with a payment date, and whether the payment is sent via direct deposit or mail. If a check is mailed, the IRS will send a paper check or prepaid debit card.
Others may see an eligibility message, but their payment has not been processed, so no payment date is available.
“Payment status not available”: what does this mean?
Another group of people may receive a message that says “Payment status not available.”
That message could mean a number of things, the IRS said. It could indicate that the tax authorities have not processed your payment or that those people are not eligible for payment, it noted.
What does “Need more information” mean?
Others may see the message “More information needed,” which, according to the IRS, means that the payment was returned to the IRS because the US Postal Service was unable to deliver the check. In that case, people can use the “Get My Payment” site to provide the IRS with bank information.
What should I do if I have not received the correct amount?
Some people may get their checks quickly but find that the payment amount is wrong – most likely it could be due to their family members or changes in income.
The law provides for $ 1,400 per adult and dependent, as long as family income is below the income threshold to qualify. Under the current bill, single people with an adjusted gross income of less than $ 75,000 and married couples with an income of less than $ 150,000 will receive their full benefits, as well as their family members. Payments decrease for income above that, and are cut off completely for singles earning $ 80,000 and $ 160,000 for married couples.
But some people may not get the right amount, especially if they haven’t filed their 2020 tax returns yet. For example, if a family gave birth to a baby last year, but hasn’t yet filed their 2020 tax return, the IRS would base their payments on their 2019 proceeds – and that doesn’t apply to their new baby. In that case, the family would receive $ 2,800 for themselves, but not the additional $ 1,400 for their child.
The IRS said people who are paid less than they should receive due to changes in their tax situation in 2020 will eventually receive the extra money. When they file their 2020 tax returns, the IRS checks to see if they owe more, as in the case of a baby born last year. If that happens, the IRS will automatically issue the additional $ 1,400 check to the family, officials said.