Have you not yet received your second childcare check? You’re not the only one.
While the IRS and the Treasury Department distributed most of the projected $ 164 million in relief payments for Americans in the second round faster than the first time, millions have not yet received payments or experienced distribution problems.
The final payments of $ 600 per eligible adult and dependents are much needed among many struggling financially as a result of the pandemic.
Here’s what anyone waiting for a payment needs to know.
WHY DIDN’T I RECEIVE THE PAYMENT?
First, make sure you qualify. Under this latest round of relief, the $ 600 payments will go to individuals making less than $ 75,000 or $ 150,000 for couples who are married and are filing jointly. Those who earn more receive a reduced amount. There are no payments for individuals who earn more than $ 99,000 per year.
However, unlike last time, payments are not denied to Americans who are married to someone without a Social Security number.
If you qualify, check the IRS Get My Payment tool on its website to find out the status of your payment.
As with the last round, most payments will be made automatically and made via direct deposit into bank accounts.
However, some people will find themselves getting their payment in a different form from the last this time. Payments are made by automatic deposit or by mail, either in the form of a paper check or debit card.
It also seems there was a big snafu this time for people who have filed their tax returns with an online tax preparation service such as TurboTax or H&R Block and paid their tax preparation fees with their expected refund. In those cases, the IRS website can show that the money went to an account they don’t recognize. That’s because money may have been transferred to a temporary bank account set up by the tax preparer, which has not been operating for long.
By law, the financial institution must return the money to the government if the account is closed or is no longer operating. A number of taxpayers expressed their frustration with the situation online, including many who got their payments easy the first time.
The National Consumer Law Center estimates that up to 20 million Americans could be affected by this latest administrative problem.
“It is disappointing that the IRS has not resolved this problem, which it has been aware of for months,” said Lauren Saunders, associate director of the National Consumer Law Center. “People in need of money now may have to wait months to file a tax return and get their refund unless the tax prep companies are able to transfer the money.”
HOW LONG WILL IT TAKE?
The IRS and the Treasury began splitting payments last week. By law, they have until January 15 to pay.
Direct deposit payments can take a few days, but most of the money was available early this week. The payments sent through the mail can take three to four weeks to reach people. The Treasury announced on Thursday that it has started sending about 8 million economic impact payments by prepaid debit card. Taxpayers are encouraged to keep a close eye on their mail for check or debit card arrival.
People who have not received the first or second round of payments due to them, or received an incorrect amount, can claim the Recovery Rebate Credit on their 2020 tax return to receive their payment.
WHEN DOES THE TAX SEASON BEGIN?
The IRS has not specified when it will begin accepting tax returns for this filing season, but tax season generally begins in late January. Some tax return services allow customers to file before then.
Electronic submission is the fastest and safest way to process a declaration. In the past, the IRS has issued refunds in less than 21 days from the date the return was received.
WHY DO I GET AN ERROR ON THE IRS SITE?
The Get My Payment tool is useful, but it can be difficult to understand.
Do not be alarmed if you get the message “Please Wait”, which is a normal part of the site’s operation. If you get the message “Payment Status # 2 – Not Available”, you are not receiving the payment and should instead claim it on your tax return.
It only updates once a day, so checking it multiple times can be pointless. It can also lock users out if it is opened too often; this is to prevent fraud.