Despite a veto threat if Congress did not include $2,000 direct payments to Americans, President Donald Trump ultimately signed the $900 billion coronavirus relief bill. When can you expect to see the $600 in your bank account?
Expect New Stimulus Checks To Arrive Before January 15, 2021
The stimulus bill includes a $600 direct payment to Americans who earned less than $75,000 in 2019 (according to adjusted gross income). 2020 tax and income levels do not come into play. Individuals who earned between $75,000 and $87,000 will receive a reduced check based upon specific income ($5 reduction for every $100 over the $75,000 you earn). Head of households can earn up to $112,500 to receive the full $600 while those earnings up $124,500 receive a reduced amount. Similarly, married filing jointly will receive the full amount if combined earnings fall at or under $150,000 (with a reduced amount for joint earnings up to $174,000).
While Treasury Secretary Steven Mnuchin promised a swift delivery of stimulus payment upon passage of the relief legislation, the delay in signing means it may be up to three weeks before Americans see their checks deposited. Mnuchin noted that direct deposit payments will arrive first, followed by “paper checks” (debit cards) for those who have not set up direct deposit information with the IRS.
The bill Trump has signed sets a January 15, 2021 deadline for all payments to be distributed.
Direct Payment Set-Up Issue With IRS
What prompted this post was my frustration with the IRS system. My deposit information is on file with the IRS and under the first CARES Act, a s0-called “recovery rebate credit” hit my bank account in the first wave.
With all the turmoil surrounding my small business this year, I have since changed banks and my old bank account is no longer active.
I went onto the IRS “Get MY Payment” website in order update my banking information and was met with the following message:
Get My Payment is Temporarily Offline
The IRS continues to monitor and prepare for new legislation related to Economic Impact Payments. The IRS will make updates to the Get My Payment portal to provide updated information for taxpayers in the near future. Please continue to monitor IRS.gov for the latest information.
I’ll be monitoring that page closely because sending money to the other account would be like sending it to a black hole. But nowhere on my IRS account could I find a place to update my banking info.
For those who do not have bank accounts or prefer to opt out of direct deposit, the COVID-19 relief bill also includes a mechanism for debit card payments. Instead of a paper check, you will be sent an Economic Impact Payment (EIP) Card which can be used like any pre-loaded debt or gift card.
But keep an eye on the Get My Payment website if you need to update your banking information.
The House of Representatives passed a measure yesterday, per the urging of the President, to up the stimulus payments to $2,000 per person. Now all eyes are on the Senate to see whether a majority will agree. In either case, the $600 is in the bag. If you are income eligible, you can expect payment by the middle of January.
If you need to update your direct deposit information, keep a close watch on the “Get My Payment” website for a chance to login and update it.