Lousy luck, technology snafus and red tape could all be reasons for delays in your stimulus payments.
The second stimulus check has been sent to your friends. It has been received by many of your relatives. You haven’t and are likely to be wondering why.
You probably have many Questions.
Here are some common questions to help you get up to speed on the latest stimulus payments.
What’s the point of a second stimulus check?
On March 27, the first stimulus package, also known as the Coronavirus Aid, Relief and Economic Security Act (or CARES Act), cost $2 trillion, was approved by Congress. If their adjusted gross income was less than $75,000, taxpayers were entitled to $1,200. You and your spouse could file jointly and earn up to $150,000. If you earned $2,400, you would receive $2,400. If you make $112,500 or less, you will receive $2,400 if your spouse files jointly.
Over the summer, there was much talk about a second stimulus. This didn’t happen until the last days of 2020. Congress passed the $900 billion bipartisan economic stimulus bill on December 21. It includes a new round for stimulus checks for families and individuals. It was created to provide financial assistance for families affected by the COVID-19 epidemic. On December 27, President Donald Trump signed the bill into law.
What is the Second Stimulus check, and how will I get it?
The stimulus check is available to eligible taxpayers. They can receive up to $600. You’ll get $1,200 if you are a married couple. You’ll get $600 per child if you have children.
Many people receive stimulus checks via direct deposit. Others are receiving them via paper checks or an EIP card.
What is an EIP Card?
EIP stands for economic impact payment. If you receive one of these cards by mail, it is a prepaid card.
It will arrive in a white envelope with the U.S. Department of the Treasury seal. The card will have the Visa name on the front and MetaBank, N.A. on the back. Instructions will be provided on activating and using your EIP card securely.
Some taxpayers may also receive a paper check. It seems that there is no rhyme or reason why some people accept money via a debit card and others via a statement.
Why haven’t some people received the second stimulus payment?
Around 13 million Americans filed their taxes through Turbo Tax, Jackson Hewitt, and H&R Block. However, their stimulus checks were deposited in the wrong accounts.
Who Received My Stimulus Money and What Did They Do?
Nobody, fortunately. Tax preparation companies set up these temporary bank accounts to hold refund loans and other banking products. The Internal Revenue Service then sent the money to these accounts. All charges are inactive.
Good news: Reports indicate that many 13,000,000 Americans received their stimulus checks redeposited to the correct account.
What if my Stimulus has not been received via direct deposit?
Don’t panic. Anil Grandhi is the founder and CEO at AG FinTax. This tax-preparation company based in Seattle provides tax planning and other services for entrepreneurs and small businesses.
Grandhi states, “We are telling clients not to be worried if they haven’t yet received their stimulus money because this is a process, and they are working hard to get them out.”
Grandhi suggests checking your payment status via the IRS’s “Get My Pay” portal. He adds that you should also update your bank account and address details.
The IRS must send all stimulus checks by January 15, and if they don’t, you will likely need to claim your money later in the year.
I didn’t use one of those tax preparation services. Why don’t I have my Stimulus payment?
You could have other reasons why a direct deposit isn’t arriving in your bank account. Have you changed banks within the past year since the Stimulus? Maybe the IRS doesn’t have your most recent bank information.
You may earn too much to qualify for a stimulus check. You may not be eligible for the second stimulus check if you earn more than $87,000 in your 2019 tax return.
What happens if my income drops significantly during the year? Does that mean I am eligible for a Stimulus Check or not?
It’s possible. It is possible if you are eligible and you have not received a stimulus-check to receive a refundable credit or credits when you file your taxes for the year.
Grandhi suggests that you file your Form 1040 or Form1040-SR tax returns for 2020 to receive your stimulus payment.
What if I didn’t receive the total amount of Stimulus I was entitled to?
Grandhi states that in such a case, Grandhi said, “If your full stimulus payment did not reach you, you could claim the recovery credit for the difference in your 2020 tax return, based on Notice 444, which you received from the IRS and shared with you by them after payment was made.”
Is there a third stimulus check?
Nobody knows. Christopher Ball, an associate professor of economics at Quinnipiac University Hamden, Connecticut says, it is possible.
Ball states that he believes there will be a third stimulus. Ballpoints out that Democrats who will soon be in control of the House, Senate and presidency will announce that they will send $2,000 stimulus checks directly to households.
“This means that they will debate it around the end of January or early February. Shutdowns in some states are still in effect, and cases and deaths continue to rise. California is one example. Ball states that the global economy remains in limbo, particularly as Europe continues to reseal from the U.K.’s faster-spreading strain.”
He also mentions that vaccinations are progressing slower than expected in America and Europe. Ball states, “All that tells me that when the American government seriously debates the next wave in checks and a support bill for them, we’ll be deep into the dark winter that we’ve been warned about.” “This means that both politicians and voters will support more checks. There’s a good chance that we will see the third one.
If that happens, you won’t need to waste much energy and time wondering when the third stimulus check will arrive.